The stock of Trex Company Inc. (NYSE:TREX) decreased by -$0.83 on Friday to finish at $68.63, down -1.19 percent. The last five days have seen an average of 845,860 shares of common stock traded. 27 times new highs were reached in the current year, with a gain of $26.30. The average number of shares traded over the last 20 days was 1,060,495, while the average volume over the last 50 days totaled 1,014,302.
TREX stock appreciated 0.88% since last month. On 08/21/23, the company’s shares reached a one-month low of $66.54. The stock touched a high of $76.05 on 08/02/23, after rallying from a low of $38.68 in 52 weeks. The price of TREX stock has risen by 62.13% or $26.30 this year, reaching a new high 27 times. Still, the stock price is down -9.76% from the 52-week high.
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Valuation Metrics
Trex Company Inc. (TREX) has a trailing price-to-earnings (P/E) ratio of 52.47. Beta for the stock is 1.49. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 7.73, the price-to-book (PB) ratio of 11.98.
Financial Health
For the three months ended June 29, Trex Company Inc.’s quick ratio was 0.90, while its current ratio was 1.10, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 37.20% percent. Trex Company Inc.’s EBITDA margin for the year ended June 29 was 27.71%, whereas its operating margin stood at 20.10% for the same period. Based on annual data, it had gross profit of $403.99 million and revenue of $1.11 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. TREX’s return on assets (ROA) during the last 12 months has been 14.30%. There was a 24.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 25.30%.
Earnings Surprise
According to Trex Company Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $356.54 million, while revenues fell by -8.33% to $238.72 million. It was predicted that Trex Company Inc.’s quarterly earnings would be $0.71, but it ended up being $0.53, beating the consensus by 34.00%. EBITDA was $117.05 million for the quarter. At the end of Trex Company Inc.’s most recent quarter ended June 29, its liabilities totaled 446.29 million, while its total debt was $235.41 million. Equity owned by shareholders amounts to $108.56 million.
Technical Picture
Here’s a quick look at Trex Company Inc.’s (TREX) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 41.28%, suggesting the stock is Neutral, with a 35.62% historical volatility rate.
The stochastic %K and %D were 31.09% and 28.89% respectively, while the average true range (ATR) was 2.17. Based on the 14-day stochastic reading of 22.02%, the RSI (14) reading is 46.08%. On the 9-day MACD Oscillator, the stock is at -0.19, and the 14-day reading is at -1.86.
Analyst Ratings
In its analyst report released on August 25, 2023, Citigroup began covering Trex Company Inc. (NYSE: TREX). The stock was rated as a Neutral by the brokerage firm. Analysts have assigned Trex Company Inc. (TREX) an Overweight rating. TREX is a stock that is recommended for selling by 2 brokerage firms, while 8 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 9 others recommend it as a buy.
What is TREX’s price target for the next 12 months?
The current consensus forecast for the stock is between $58.00 and $87.00, with a median target price of $79.50. In analyzing these forecasts, the average price target given by analysts for Trex Company Inc. (TREX) is $76.56.
