ScoreWhy is Trex Co., Inc. ?
1
High Management Efficiency with a high ROCE of 33.52%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Net Sales has grown by an annual rate of 7.67% and Operating profit at 2.92% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
- INTEREST(9M) At USD 0.08 MM has Grown at inf%
- NET PROFIT(9M) At USD 146.12 MM has Grown at -26.21%
- ROCE(HY) Lowest at 19.81%
5
With ROCE of 19.73%, it has a very expensive valuation with a 5.85 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -55.68%, its profits have fallen by -21.9%
6
Below par performance in long term as well as near term
- Along with generating -55.68% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Trex Co., Inc. should be less than 10%
- Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Trex Co., Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Trex Co., Inc.
-14.82%
-1.07
52.82%
S&P 500
16.06%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.92%
EBIT Growth (5y)
2.00%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.74
Net Debt to Equity (avg)
0.49
Sales to Capital Employed (avg)
1.14
Tax Ratio
26.28%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
33.52%
ROE (avg)
30.21%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
4.50
EV to EBIT
18.61
EV to EBITDA
14.96
EV to Capital Employed
4.08
EV to Sales
4.09
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
21.93%
ROE (Latest)
18.41%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 355.69 MM
NET SALES(Q)
Highest at USD 418.02 MM
-30What is not working for the Company
NET SALES(HY)
At USD 343.4 MM has Grown at -52.82%
ROCE(HY)
Lowest at 17.74%
RAW MATERIAL COST(Y)
Grown by 7.29% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 29.39 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 0 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
INTEREST(Q)
Highest at USD 2.33 MM
OPERATING PROFIT(Q)
Lowest at USD 0 MM
PRE-TAX PROFIT(Q)
Lowest at USD 0 MM
Here's what is working for Trex Co., Inc.
Net Sales
At USD 418.02 MM has Grown at 41.98%
over average net sales of the previous four periods of USD 294.42 MMMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Cash Flow
Highest at USD 355.69 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 418.02 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Depreciation
Highest at USD 19.37 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Trex Co., Inc.
Pre-Tax Profit
At USD 0 MM has Fallen at -100%
over average net sales of the previous four periods of USD 64.97 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Interest
At USD 2.33 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 2.33 MM
in the last five periods and Increased by inf% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 0 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD 0 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Debt-Equity Ratio
Highest at 29.39 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.29% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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