Trex Company, Inc. (TREX) AI Stock Analysis

Trex Company, Inc. manufactures and distributes decking, railing, and outdoor living products across the United States. Operating across residential and commercial segments, its residential offerings include composite decking lines such as Trex Transcend, Trex Select, and Trex Enhance, alongside Trex Hideaway fasteners and Trex DeckLighting. Trex also produces railing systems like Trex Signature aluminum railings, Trex Transcend Railing, and Trex Seclusions fencing. For commercial clients, it provides architectural and aluminum railings for sports stadiums and arts venues. Additionally, the company licenses its brand for outdoor furniture, Trex RainEscape drainage systems, pergolas, and lattice boards.

Between FY2021 and FY2025, Trex delivered a 5-year revenue compound annual growth rate of 5.9%, moving from $1.20B in FY2021 to $1.17B in FY2025. Annual net income peaked in FY2024 at $226.4M before declining to $190.4M in FY2025, with net margin slipping from 19.7% to 16.2%. Operating margin also dropped from 26.5% in FY2024 to 22.0% in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $1.21B with diluted EPS of $1.70. While quarterly revenue in the latest quarter rose 7.8% year-over-year, quarterly earnings fell 15.2%.

As of June 30, 2026, Trex held $6.5M in cash and short-term investments against $290.8M in total debt, resulting in net debt of $284.3M. The company maintains a debt-to-equity ratio of 0.29 and a current ratio of 1.06 on total assets of $1.63B. In FY2025, Trex generated $358.1M in operating cash flow and $124.5M in free cash flow. Capital deployment in FY2025 included $233.6M in capital expenditures and $54.5M directed toward share buybacks, contributing to an 11.5% reduction in share count over 5 years.

Trex carries a market capitalization of $4.66B and trades at a trailing price-to-earnings multiple of 26.9x and a forward P/E of 21.0x, both above the US-listed Industrials median multiples of 24.8x and 17.2x. Its enterprise value-to-EBITDA ratio of 15.3x also exceeds the peer median of 13.9x, and its price-to-sales ratio is 3.9x compared to the sector median of 1.5x. Over the past 1-year period, the stock fell 10.3% while the S&P 500 gained 16.8%, and over 5 years, Trex declined 51.0% against an 83.0% gain for the index.

Wall Street coverage includes 11 Strong Buy, 6 Hold, and 2 Sell ratings. The consensus mean price target is $55.21, representing a 20.7% upside relative to the October 16, 2026 closing price of $45.73. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.77 on revenue of $1.24B. Looking to FY2027, 21 analysts project EPS to rebound 14.3% to $2.02 on revenue of $1.32B. Trex has beaten earnings estimates in 2 of the past 4 quarters, with its next earnings release scheduled for November 4, 2026.

This page is an AI-written research summary of Trex Company, Inc. (TREX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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