TREX logo TREX
Upturn stock rating
TREX logo

Trex Company Inc (TREX)

Upturn stock rating
$48.32
Last Close (24-hour delay)
upturn advisory
PASS
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Upturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
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Upturn Advisory Summary

10/31/2025: TREX (2-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

18 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $68.41

1 Year Target Price $68.41

Analysts Price Target For last 52 week
$68.41 Target price
52w Low $47.03
Current$48.32
52w High $80.74

Analysis of Past Performance

Type Stock
Historic Profit 30.03%
Avg. Invested days 49
Today’s Advisory PASS
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulation Last Close 10/31/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 5.18B USD
Price to earnings Ratio 27.77
1Y Target Price 68.41
Price to earnings Ratio 27.77
1Y Target Price 68.41
Volume (30-day avg) 18
Beta 1.49
52 Weeks Range 47.03 - 80.74
Updated Date 11/2/2025
52 Weeks Range 47.03 - 80.74
Updated Date 11/2/2025
Dividends yield (FY) -
Basic EPS (TTM) 1.74

Earnings Date

Report Date 2025-10-27
When Before Market
Estimate 0.6305
Actual -

Profitability

Profit Margin 16.53%
Operating Margin (TTM) 26.41%

Management Effectiveness

Return on Assets (TTM) 11.3%
Return on Equity (TTM) 19.81%

Valuation

Trailing PE 27.77
Forward PE 20.24
Enterprise Value 5914457427
Price to Sales(TTM) 4.59
Enterprise Value 5914457427
Price to Sales(TTM) 4.59
Enterprise Value to Revenue 5.24
Enterprise Value to EBITDA 19.02
Shares Outstanding 107234320
Shares Floating 106629518
Shares Outstanding 107234320
Shares Floating 106629518
Percent Insiders 0.66
Percent Institutions 109.74

ai summary icon Upturn AI SWOT

Trex Company Inc

stock logo

Company Overview

overview logo History and Background

Trex Company Inc. was founded in 1996 as a subsidiary of Mobil Corporation, later becoming an independent publicly traded company. It pioneered the wood-alternative decking industry, focusing on environmentally friendly composite materials made from recycled plastic film and reclaimed wood fibers. Significant milestones include rapid growth in market share and continuous product innovation.

business area logo Core Business Areas

  • Residential Products: Manufactures and distributes composite decking, railing, and outdoor lighting solutions for residential applications. Key products include Trex Transcend, Trex Select, and Trex Enhance decking lines.
  • Commercial Products: Offers decking and railing solutions for commercial projects, including boardwalks, docks, and outdoor living spaces. Focuses on durability and low maintenance.
  • Trex Fencing: Provides fencing products for residential applications, offering a durable and low-maintenance alternative to traditional wood fences.

leadership logo Leadership and Structure

Bryan Fairbanks serves as the President and CEO. The company operates with a functional organizational structure, with departments focused on sales, marketing, manufacturing, research and development, and finance.

Top Products and Market Share

overview logo Key Offerings

  • Trex Transcend Decking: High-performance composite decking known for its durability, stain resistance, and aesthetic appeal. It has the highest price point among the Trex decking products. Competitors include TimberTech (AZEK), Fiberon, and Deckorators. Data for market share specifically for the 'Trex Transcend' product is not publicly available.
  • Trex Enhance Decking: More affordable composite decking option that provides a balance of performance and value. Competitors include TimberTech (AZEK), Fiberon, and Deckorators. Data for market share specifically for the 'Trex Enhance' product is not publicly available.
  • Trex Railing: Composite railing systems designed to complement Trex decking. Competitors include TimberTech (AZEK), Fortress Building Products, and RDI Railing.

Market Dynamics

industry overview logo Industry Overview

The composite decking market is experiencing strong growth driven by increasing demand for low-maintenance, durable, and sustainable outdoor living products. Factors influencing the market include rising housing starts, remodeling activity, and environmental awareness.

Positioning

Trex is the market leader in composite decking, holding a significant market share due to its brand recognition, product quality, and extensive distribution network. Its competitive advantages include its established brand, vertically integrated manufacturing process, and commitment to sustainability.

Total Addressable Market (TAM)

The global composite decking market is expected to reach $8.5 billion by 2028. Trex is well-positioned to capture a substantial portion of this TAM, leveraging its established brand and extensive distribution network.

Upturn SWOT Analysis

Strengths

  • Strong Brand Recognition
  • Vertically Integrated Manufacturing
  • Extensive Distribution Network
  • Commitment to Sustainability
  • Market Leadership

Weaknesses

  • Higher Price Point Compared to Wood Decking
  • Sensitivity to Economic Downturns
  • Dependence on Recycled Materials Availability

Opportunities

  • Expanding into New Geographic Markets
  • Developing Innovative New Products
  • Increasing Focus on Commercial Applications
  • Capitalizing on the Growing Demand for Outdoor Living Spaces

Threats

  • Increased Competition from Other Composite Decking Manufacturers
  • Fluctuations in Raw Material Costs
  • Economic Downturns Affecting Consumer Spending
  • Changes in Building Codes and Regulations

Competitors and Market Share

competitor logo Key Competitors

  • AZEK (AZEK)
  • Fiberon (FORTRESS)
  • Deckorators (STERIS)

Competitive Landscape

Trex has a significant advantage over its competitors due to its brand recognition, scale, and vertically integrated manufacturing process. However, AZEK and Fiberon are formidable competitors with strong product offerings and established distribution networks.

Growth Trajectory and Initiatives

Historical Growth: Trex has demonstrated strong historical growth driven by increasing demand for composite decking and successful product innovation.

Future Projections: Future growth projections depend on a wide range of factors including revenue projections for various business areas. However, analysts generally expect Trex to continue to grow at a healthy rate due to the increasing demand for composite decking and its strong market position.

Recent Initiatives: Recent initiatives include expanding manufacturing capacity, launching new product lines, and investing in marketing and sales efforts.

Summary

Trex Company Inc. is a strong market leader in the composite decking industry, driven by its brand recognition, sustainable products, and efficient manufacturing. However, the company remains susceptible to economic downturns and commodity fluctuations. To remain competitive, Trex will need to manage these factors and continue innovating and expanding its product offerings. It's essential to look out for the availability of sustainable materials in the future.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company SEC Filings
  • Industry Reports
  • Analyst Estimates
  • Company Website

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance are subject to change. Consult with a financial professional before making any investment decisions. Market share figures are estimates and may not reflect precise data.

Upturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI Summarization 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
Full time employees 1838

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.