Trex Company, Inc. (TREX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-86.2%

$7.03

vs $50.86 price

Levered DCF

$22.62

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

7.97

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.71×	33.03×	43.8×	25.65×	74.6×	55.08×	36.24×	25.81×
P/B	3.63×	8.78×	12.55×	9.12×	21.5×	16.49×	11.69×	10.17×
P/S	3.2×	6.49×	8.22×	4.28×	13.03×	11.01×	7.05×	5.1×
EV / EBITDA	12.4×	21.43×	27.66×	16.22×	43.4×	38.22×	25.44×	17.49×
Gross margin	39.2%	42.2%	41.3%	36.5%	38.5%	40.8%	41.1%	43.1%
Operating margin	22.0%	26.5%	25.2%	22.3%	23.0%	26.5%	25.2%	25.8%
Net margin	16.2%	19.7%	18.8%	16.7%	17.4%	19.9%	19.4%	19.7%
Current ratio	1.24×	0.93×	1.89×	0.99×	4.52×	3.03×	3.85×	2.91×
Debt / equity	0.22×	0.3×	0.04×	0.49×	0.05×	0.06×	0.09×	0×
Interest coverage	0×	0×	55,240.8×	0×	0×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	18.4%	26.6%	28.7%	35.6%	28.8%	29.8%	32.2%	39.2%
Return on invested capital	13.7%	18.9%	24.0%	21.1%	24.9%	26.1%	27.6%	36.1%
Return on assets	12.8%	17.1%	22.0%	19.8%	22.7%	22.8%	24.4%	28.9%
Free cash flow yield	3.3%	-1.2%	2.5%	0.8%	0.6%	0.1%	1.7%	3.0%
Earnings yield	5.1%	3.0%	2.3%	3.9%	1.3%	1.8%	2.8%	3.9%
Enterprise value	$4B	$7.7B	$9B	$5B	$15.5B	$9.6B	$5.1B	$3.4B
Net debt / EBITDA	0.7×	0.71×	0.09×	0.79×	-0.3×	-0.34×	-0.53×	-0.55×
Cash conversion cycle (days)	120	108	64	95	78	72	78	80