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Upturn AI SWOT - About
TREX 
Trex Company Inc (TREX)
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Upturn Advisory Summary
07/29/2025: TREX (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
18 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $69.94
1 Year Target Price $69.94
| 6 | Strong Buy |
| 1 | Buy |
| 10 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 48.89% | Avg. Invested days 48 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 07/29/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.20B USD | Price to earnings Ratio 36.71 | 1Y Target Price 69.94 |
Price to earnings Ratio 36.71 | 1Y Target Price 69.94 | ||
Volume (30-day avg) 18 | Beta 1.5 | 52 Weeks Range 49.01 - 85.14 | Updated Date 07/29/2025 |
52 Weeks Range 49.01 - 85.14 | Updated Date 07/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.83 |
Earnings Date
Report Date 2025-08-04 | When - | Estimate 0.712 | Actual - |
Profitability
Profit Margin 17.69% | Operating Margin (TTM) 24.02% |
Management Effectiveness
Return on Assets (TTM) 11.43% | Return on Equity (TTM) 23.07% |
Valuation
Trailing PE 36.71 | Forward PE 30.12 | Enterprise Value 7693378084 | Price to Sales(TTM) 6.44 |
Enterprise Value 7693378084 | Price to Sales(TTM) 6.44 | ||
Enterprise Value to Revenue 6.91 | Enterprise Value to EBITDA 23.91 | Shares Outstanding 107227000 | Shares Floating 106634082 |
Shares Outstanding 107227000 | Shares Floating 106634082 | ||
Percent Insiders 0.68 | Percent Institutions 110.5 |
Upturn AI SWOT
Trex Company Inc
Company Overview
History and Background
Trex Company Inc. was founded in 1996 as a subsidiary of Mobil Corporation before becoming independent. It pioneered the composite decking industry and has grown to be the world's largest manufacturer of wood-alternative decking and railing.
Core Business Areas
- Residential Products: Manufactures and distributes composite decking, railing, and outdoor lighting for residential use. These products offer a low-maintenance, durable alternative to traditional wood decking.
- Commercial Products: Offers commercial-grade decking and railing solutions for public spaces, such as boardwalks and parks. These products are designed for high-traffic areas and require minimal upkeep.
Leadership and Structure
Bryan Fairbanks is the President and CEO. The company has a typical corporate structure with various departments including sales, marketing, operations, and finance, reporting to the executive leadership team and Board of Directors.
Top Products and Market Share
Key Offerings
- Trex Decking: Composite decking available in various colors and styles. Trex holds a significant market share in composite decking, estimated around 45%. Competitors include AZEK (AZEK), Fiberon, and TimberTech (CRH). Revenue is the major portion of the annual revenue.
- Trex Railing: Composite railing systems designed to complement Trex decking. Competitors include companies like AZEK and Fortress Building Products. These contribute to less revenue than decking.
Market Dynamics
Industry Overview
The composite decking and railing industry is growing, driven by increasing demand for low-maintenance, durable outdoor living products. Consumers are looking for alternatives to traditional wood that resist weathering, insects, and rot.
Positioning
Trex is the market leader in composite decking, recognized for its brand reputation, product innovation, and extensive distribution network. Its competitive advantages include a strong brand, established distribution channels, and continuous product development.
Total Addressable Market (TAM)
The global composite decking market is estimated to reach $7.5 billion by 2028. Trex is well-positioned to capitalize on this growth with its leading market share.
Upturn SWOT Analysis
Strengths
- Brand recognition
- Market leadership
- Extensive distribution network
- Product innovation
- Strong financial performance
Weaknesses
- Reliance on housing market trends
- Raw material price volatility
- Premium pricing compared to wood
- Impact from product defects and recall situations
Opportunities
- Expanding into new markets
- Developing new products and applications
- Capitalizing on sustainability trends
- Growing demand for outdoor living spaces
Threats
- Competition from other composite decking manufacturers
- Fluctuations in raw material costs
- Economic downturns
- Changes in building codes and regulations
Competitors and Market Share
Key Competitors
- AZEK (AZEK)
- CRH (CRH)
- UPM (UPM)
Competitive Landscape
Trex has a competitive advantage in brand recognition and market share, but faces competition from other composite decking manufacturers and traditional wood decking suppliers. AZEK is growing in popularity and is well-regarded. Trex benefits from well-established distribution.
Growth Trajectory and Initiatives
Historical Growth: Trex has experienced significant growth in revenue and earnings over the past decade, driven by increasing demand for composite decking and railing.
Future Projections: Future growth projections require analyst input and estimates.
Recent Initiatives: Recent initiatives include expanding manufacturing capacity, introducing new product lines, and strengthening relationships with distributors and retailers.
Summary
Trex is a strong company with a leading position in the composite decking market. Its brand recognition, extensive distribution network, and product innovation are key strengths. However, the company is exposed to risks related to housing market trends and raw material price volatility, requiring careful management and adaptability to sustain its growth trajectory.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Research Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Trex Company Inc
Exchange NYSE | Headquaters Winchester, VA, United States | ||
IPO Launch date 1999-04-08 | President, CEO & Director Mr. Bryan Horix Fairbanks | ||
Sector Industrials | Industry Building Products & Equipment | Full time employees 1838 | Website https://www.trex.com |
Full time employees 1838 | Website https://www.trex.com | ||
Trex Company, Inc. manufactures and sells composite decking and railing products in the United States. The company offers decking products and accessories that can be used for protection against fading, staining, mold, and scratching, including Trex Transcend, which are decking products that can also be used as cladding; Trex Signature; Trex Transcend Lineage; Trex Select; Trex Enhance; Trex Hideaway fastener collection; and Trex DeckLighting, an outdoor lighting system that includes a post cap, deck rail, riser, a soffit, and a recessed deck lights. It also offers railing products, such as Trex Signature X-Series Railing, Trex Signature aluminum railing, Trex Transcend Railing, Trex Select Railing, Trex Select T-Rail, Trex Enhance Railing; and fencing products, which includes Trex Seclusions that consists of structural posts, bottom rails, pickets, top rails, and decorative post caps. In addition, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Protect joist, beam and rim tape, a self-adhesive butyl tape that protects wooden deck framing/substructure elements; Trex RainEscape Soffit Light, a plug-and-play LED Soffit light that is installed in the under-deck ceiling of a two-story deck; Trex Seal Ledger Flashing Tape, butyl flashing tape with an aluminum liner; Trex Pergola, Pergolas made from low maintenance cellular PVC and all-aluminum product; Trex Lattice outdoor boards; Trex Cornhole boards; Trex Blade, a specialty saw blade for wood-alternative composite decking; Trex SpiralStairs; and Trex Outdoor Kitchen cabinetry. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.
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