📊 TREX Key Takeaways
Is Trex Co Inc. (TREX) a Good Investment?
TREX exhibits strong profitability margins (24.3% operating, 17.9% net) and zero debt, but faces a critical liquidity crisis with negative operating cash flow of -$118.4M despite $61.4M net income, leaving only $4.5M cash reserves. The $141.5M negative free cash flow indicates fundamental operational dysfunction that cannot be sustained, and tight working capital ratios (1.02x current, 0.62x quick) signal near-term financial stress despite solid underlying margins.
Trex Co Inc. Key Strengths (TREX)
- Strong operating margin of 24.3% and gross margin of 40.5% demonstrate pricing power and cost control
- Zero long-term debt and 0.00x debt-to-equity ratio provide clean balance sheet structure
- Profitable on accrual basis with $61.4M net income from $343.4M revenue
TREX Stock Risks: Trex Co Inc. Investment Risks
- Severe negative free cash flow of -$141.5M represents unsustainable cash burn despite reported profitability, indicating working capital crisis or operational failure
- Critical liquidity squeeze with only $4.5M cash, current ratio of 1.02x, and quick ratio of 0.62x threaten near-term solvency
- Stagnant growth with flat net income YoY and declining EPS (-19.1%), combined with negative operating cash flow suggesting declining operational health
Key Metrics to Watch
- Operating cash flow trend - critical need for improvement from -$118.4M to positive territory
- Cash balance and liquidity runway - with minimal reserves and continued burn, timeline to potential crisis
- Working capital components (accounts receivable, inventory, payables) - significant deterioration likely driving OCF deficit despite profitability
Trex Co Inc. (TREX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Trex Co Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TREX Profit Margin, ROE & Profitability Analysis
TREX vs Materials Sector: How Trex Co Inc. Compares
How Trex Co Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Trex Co Inc. Stock Overvalued? TREX Valuation Analysis 2026
Based on fundamental analysis, Trex Co Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Trex Co Inc. Balance Sheet: TREX Debt, Cash & Liquidity
TREX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Trex Co Inc.'s revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $1.88 reflects profitable operations.
TREX Revenue Growth, EPS Growth & YoY Performance
TREX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $340.0M | $60.4M | $0.56 |
| Q3 2025 | $233.7M | $40.6M | $0.37 |
| Q2 2025 | $376.5M | $60.4M | $0.71 |
| Q1 2025 | $340.0M | $60.4M | $0.56 |
| Q3 2024 | $233.7M | $40.6M | $0.37 |
| Q2 2024 | $356.5M | $41.1M | $0.71 |
| Q1 2024 | $238.7M | $41.1M | $0.38 |
| Q3 2023 | $188.5M | $14.4M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Trex Co Inc. Dividends, Buybacks & Capital Allocation
TREX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Trex Co Inc. (CIK: 0001069878)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TREX
What is the AI rating for TREX?
Trex Co Inc. (TREX) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TREX's key strengths?
Claude: Strong operating margin of 24.3% and gross margin of 40.5% demonstrate pricing power and cost control. Zero long-term debt and 0.00x debt-to-equity ratio provide clean balance sheet structure.
What are the risks of investing in TREX?
Claude: Severe negative free cash flow of -$141.5M represents unsustainable cash burn despite reported profitability, indicating working capital crisis or operational failure. Critical liquidity squeeze with only $4.5M cash, current ratio of 1.02x, and quick ratio of 0.62x threaten near-term solvency.
What is TREX's revenue and growth?
Trex Co Inc. reported revenue of $343.4M.
Does TREX pay dividends?
Trex Co Inc. does not currently pay dividends.
Where can I find TREX SEC filings?
Official SEC filings for Trex Co Inc. (CIK: 0001069878) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TREX's EPS?
Trex Co Inc. has a diluted EPS of $0.58.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TREX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Trex Co Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TREX stock overvalued or undervalued?
Valuation metrics for TREX: ROE of 6.2% (sector avg: 14%), net margin of 17.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is TREX's AI grade for 2026?
Our dual AI analysis gives Trex Co Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TREX's free cash flow?
Trex Co Inc.'s operating cash flow is $-118.4M, with capital expenditures of $23.1M. FCF margin is -41.2%.
How does TREX compare to other Materials stocks?
Vs Materials sector averages: Net margin 17.9% (avg: 10%), ROE 6.2% (avg: 14%), current ratio 1.02 (avg: 1.6).