Trex Company, Inc. — Building Products & Equipment. Scored on the same transparent 7-signal model behind the daily rankings.
★
TREX
Trex Company, Inc. · Building Products & Equipment
FCF$226mC
Rev+5.4%C+
D/E0.44B+
P/E24.5xB+
PEG1.00B+
71.1Score
$43.62$4.5B
1Y Target$49.89Analyst consensus · 18 analysts
5Y Target$73.04Compound horizon
10Y Target$108.35Long-dated conviction
FCF$226mTTMC
FCF $226m — modest; watch for margin expansion
Rev+5.4%TTM YoYC+
Revenue +5.4% — steady but below market-beating range
D/E0.44B+
D/E 0.44 — below the Industrials debt median (≈40th pctile)
P/E24.5xB+
P/E 24.5 — below the Industrials median (≈40th pctile)
PEG1.00B+
PEG 1.00 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 71.1
Quality0.88
Growth0.55
Value0.74
Why this score
Buying back stock
Durable high returns
Entry · Margin of safety
52-week rangeMid-range
37% off the 12-month high
vs DCF fair value58% aboveest. fair value ~$28
What the price assumes: free cash flow compounding at ~19% a year for the next decade — vs the ~11% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability27% · Bgross profit ÷ total assets (Novy-Marx)
ROIC18.9% · A-return on invested capital — not score-weighted
Why now
Building Products & Equipment · market cap $4.5b. Down 37% from 52-week high of $68.78 — deep drawdown territory. 18 sell-side analysts rate this a Buy with a mean 1-yr target of $49.89 (implying +14% upside).
Moat
Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 19% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 118% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 37% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.47 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon
1-3 yr $49.89 (18-analyst consensus) — fundamentals + valuation re-rating. 5 yr $73.04 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $108.35 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · TREX
Trend
+8.3 over 20 daily scores
From 62.8 (Jun 22) → 71.1 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · TREX
$
%
%
Shares to buy
45
Position size
$1,963
3.9% of portfolio
Stop price
$32.71
25% below $43.62
$ at risk if stopped
$490.72
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Trex Company, Inc. (TREX): score, valuation & FAQ
Trex Company, Inc. (TREX) is a Building Products & Equipment company that scores 71.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (B+), P/E (B+) and PEG (B+). On valuation, TREX sits about 58% above our discounted-cash-flow fair value — the current price implies roughly 19% annual free-cash-flow growth over the next decade.
Is TREX a good stock to buy?
Bull Rankings scores TREX 71.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (B+), P/E (B+) and PEG (B+). A score is a quantitative screen of Trex Company, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does TREX score 71.1 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). TREX earns its highest marks on D/E (B+), P/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is TREX overvalued or undervalued?
Based on $43.62, TREX sits about 58% above our discounted-cash-flow fair value — the current price implies roughly 19% annual free-cash-flow growth over the next decade. It trades at a 24.5x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in TREX?
Down 37% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.47 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.