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$56.30 $1.88 (3.5%)

04:00 PM EDT on 07/01/22

Trex Company, Inc. (NYSE:TREX)

CAPS Rating: 5 out of 5

The Company is a manufacturer of wood-alternative decking, railing and fencing products, which are marketed under the brand name Trex.

Current Price $56.30 Mkt Cap $6.4B
Open $54.63 P/E Ratio 28.03
Prev. Close $56.30 Div. (Yield) $0.00 (0.0%)
Daily Range $54.50 - $57.06 Volume 885,806
52-Wk Range $49.31 - $140.98 Avg. Daily Vol. 1,280,184

Caps

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All Players

383 Outperform
53 Underperform
 

All-Star Players

70 Outperform
7 Underperform
 

Wall Street

0 Outperform
0 Underperform
 

Top NYSE:TREX Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

TheFoolishAngler (21.04)
Submitted January 22, 2022

The Trex company manufactures and sells composite decking materials made of recycled plastics and reclaimed wood particles. Trex started when Roger Wittenberg in the late 1980’s invented a process for producing a composite plastic/wood product, Roger… More

SuperPicks (27.31)
Submitted April 14, 2009

institutional ownership already seems a bit high for such a small company. as the commercial real estate mess unravels further in 2009 & as economic recovery in real terms appears to be further & further into the future, this stock is likely to see… More

Recent Community Commentary

Read the most recent pitches from players about TREX.

Recs

0
Member Avatar R0IC (60.79) Submitted: 5/26/2022 8:45:35 AM : Outperform Start Price: $62.48 NYSE:TREX Score: -5.57

Positive Net Income (TTM): ?
Positive FCF: ?
FCF yield: 4.9%
ROIC: 32.2%

Recs

0
Member Avatar chessNstocks (< 20) Submitted: 3/9/2022 11:53:17 AM : Outperform Start Price: $73.18 NYSE:TREX Score: -12.31

From Zacks and Fidelity March 2022
Rev Change (Last Qtr vs Prior year Qtr) = 33.2%
Price/Sales (TTM) = 6.5

Recs

2
Member Avatar TheFoolishAngler (21.04) Submitted: 1/21/2022 10:00:31 PM : Outperform Start Price: $91.48 NYSE:TREX Score: -26.74

The Trex company manufactures and sells composite decking materials made of recycled plastics and reclaimed wood particles. Trex started when Roger Wittenberg in the late 1980’s invented a process for producing a composite plastic/wood product, Roger later sold his company to Mobil Chemical, and finally the brand was then spun off by employees of Mobil to create Trex as a standalone brand. Trex is now the industry leader in composite decking products, and also markets lighting, railings, and other associated products.

postitives

- [x] -high focus on environmental impact
- [x] -cashflow positive and actively reinvesting in company growth, just completed a new plant an announced another still coming online in 2024
- [x] -Trex seems to have a strong enough brand that its often put in its own group when it comes to decking options
- [x] -current CEO has served over 15 years at the company (only ceo since last spring)
- [x] -product is customer and builder facing
- [x] -Ceo bryan fairbanks started with the company working in their supply chain division, this could give the company some good insight on how to navigate current conditions
- [x] -Ceo seems to like being hands on with the manufacturing processes
- [x] -First mover and leader in composite space
- [x] -strong value proposition
- [x] -Large reatilers (lowes and HD) only have so much floorspace and new brands have a hard time getting in
- [x] -Growth in recent years may be very understated as they have minimized their international expansion with ramping up to service domestic market taking centre stage
- [x] -lots more share buybacks coming (~$1B/8.2M shares worth)
- [x] -strong secular tailwinds with people moving out of cities to suburbs offering more building opportunities
- [x] -managed to overcome 7.5% of inflationary pressures to improve gross margin by 1.5% in most recent quarter
- [x] -cladding market just coming into its own
- [x] -strong past price appreciation

negatives

- [x] -7 different ceo’s - not terribly unusual for a company of this age though
- [x] -low consumer scores on BBB and consumer affairs, mostly related to warping, discolouration, stains, and difficulty with customer care
- [x] -all talk on calls is focused on margin building, very little on product, customers
- [x] -Bryan says M&A is focused on businesses with margins in line or stronger than Trex’s (may be blinding them from looking at newer, better products)
- [x] -being reliant on recycled material could be a growth inhibitor especially as the world moves more away from plastics
- [ ] no firm plan on how to reuse/recycle trex’s boards once they come to end of life, tex does not accept formerly recycled plastics as there is uncertainty of their composition, this may not be an issue with their own products though, time will tell

Leaderboard

Find the members with the highest scoring picks in TREX.

Score Leader

Dann68

Dann68 (73.79) Score: +5,867.08

The Score Leader is the player with the highest score across all their picks in TREX.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
This player feels very strongly about this pick and has marked it a Top Pick. Top Picks do not affect a player’s score. Dann68 73.79 3/25/2009 Outperform 3Y $0.89 +6,241.41% +374.32% +5,867.08 0 Comment
jesteraudave 76.69 1/10/2008 Outperform 1Y $0.94 +5,887.23% +184.51% +5,702.72 0 Comment
NMWHITT 90.09 3/24/2008 3/24/2008 Outperform 1Y $0.95 +5,824.21% +192.16% +5,632.05 0 Comment
slim4242 < 20 12/7/2007 Outperform 3W $0.98 +5,635.83% +164.26% +5,471.57 1 Comment
sjl1001 < 20 11/15/2007 Outperform NS $0.98 +5,642.86% +172.58% +5,470.28 0 Comment
garypike < 20 1/9/2008 Outperform 5Y $0.99 +5,592.32% +184.79% +5,407.53 0 Comment
apathetik 67.23 2/12/2008 Outperform 5Y $1.02 +5,431.20% +192.46% +5,238.74 0 Comment
toddot04 85.31 3/30/2009 Outperform 3W $1.01 +5,486.10% +382.81% +5,103.30 0 Comment
1or5stars 99.48 3/2/2009 Outperform 3M $1.13 +4,896.89% +435.14% +4,461.76 0 Comment
icecold11230 84.67 6/26/2008 Outperform NS $1.38 +3,989.22% +201.35% +3,787.88 0 Comment

Wall Street

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There are no Wall Street tracker picks for TREX.