Recent News
On October 1, 2025 the company named Prithvi S. Gandhi as Senior Vice President and Chief Financial Officer. On October 30, 2025 Trex expanded its distribution footprint by adding Weekes Forest Products across four states. On November 5, 2025 the company announced its fourth-quarter 2025 investor conference schedule.
Technical Analysis
ADX registers 54.86, indicating a very strong trend; the directional indicators show a shift toward bullish directional pressure as DI+ records a dip & reversal while DI- records a peak & reversal, implying recent downward dominance has begun to flip toward buyers and a strong trend environment now supports whatever directional bias develops.
MACD reads -5.06 with a dip & reversal in momentum and a signal line at -4.74; momentum shows an early improvement from deeper weakness but MACD remains below zero and below the signal line, so bullish momentum has started to re-emerge without a confirmed MACD crossover.
MRO stands at -43.59 and shows a decreasing trend, which indicates price sits well below the WMDST target and that the gap widened recently, implying pronounced upside potential if price reverts toward the target level.
RSI sits at 30.26 with a decreasing trend, keeping the stock near traditional oversold territory and supporting higher short-term volatility and the possibility of mean reversion if momentum confirms.
Price sits at $31.05 below the 12-day EMA ($33.40, decreasing), the 26-day EMA ($38.66), the 20-day average ($32.92) and well below longer-term averages (50-day $46.41; 200-day $56.44). Bollinger band width shows the 1x lower band at $28.26 and the 1x upper at $37.57; current price nearer the lower band suggests room for a bounce if short-term momentum stabilizes.
Volume recent activity registers 4.48 million with a 10-day average of 3.35 million and a 200-day average of 1.97 million, signaling above-average participation during recent moves and supporting greater conviction behind directional shifts.
Fundamental Analysis
Revenue registers $285,348,000 with revenue growth year-over-year down -30.33% and quarter-over-quarter down -287.89%; sales contraction represents the principal headwind to margin and earnings dynamics over the last year and quarter.
Operating (EBIT) registers $70,397,000 and an operating margin of 24.67%, which sits above the industry peer mean of 16.07% and above the industry peer median of 19.98%, while remaining below the industry peer high of 27.68%; the margin strength provides meaningful earnings resilience despite revenue declines. Operating margin quarter-over-quarter fell -6.57% while year-over-year improved 6.18%.
Net income reached $51,770,000 and EPS printed $0.51 versus an estimate of $0.57, missing by $0.06, a -10.53% surprise; that earnings miss contributed to recent downward pressure but underlying profitability metrics remain positive.
Free cash flow reached $139,570,000, producing a free cash flow yield of 2.39% and free cash to net income of 269.60%, underlining strong cash conversion; WMDST highlights this cash generation as a primary support for current valuation.
Balance-sheet metrics show total debt $158,304,000, net debt $99,943,000, debt to EBITDA 1.83, and a current ratio of 1.20. Return on equity registers 4.97% and return on assets 3.46%, with asset turnover at 0.19. Asset growth paced down -5.55% while cash conversion cycle sits at 107.95 days, above the industry peer mean of 72.73 days but inside the industry peer range.
Valuation context: price-to-earnings stands at 106.69 and price-to-book at 5.60 (below the industry peer mean of 6.78 and slightly below the industry peer median of 5.73). Price-to-sales reads 20.45, which exceeds the industry peer high of 19.81. WMDST values the stock as under-valued given free cash flow strength and balance-sheet flexibility, but elevated revenue contraction and stretched sales-based multiples represent counterweights to that valuation view.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 5.5 M |
| Operating Cash Flow | $ 196.9 M | |
| Capital Expenditures | $ -57.32 M | |
| Change In Working Capital | $ 127.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 5.8 M | |
| End Period Cash Flow | $ 11.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 285.3 M | |
| Forward Revenue | $ 80.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 169.9 M | |
| Depreciation | $ 16.0 M | |
| Depreciation and Amortization | $ 16.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 215.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 115.4 M | |
| EBITDA | $ 86.4 M | |
| EBIT | $ 70.4 M | |
| Operating Income | $ 70.4 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 70.4 M | |
| Tax Provision | $ 18.6 M | |
| Tax Rate | 26.5 % | |
| Net Income | $ 51.8 M | |
| Net Income From Continuing Operations | $ 51.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.57 | |
| EPS Actual | $ 0.51 | |
| EPS Difference | $ -0.06 | |
| EPS Surprise | -10.526 % | |
| Forward EPS | $ 0.55 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.5 B | |
| Intangible Assets | $ 30.4 M | |
| Net Tangible Assets | $ 1.0 B | |
| Total Current Assets | $ 337.8 M | |
| Cash and Short-Term Investments | $ 11.4 M | |
| Cash | $ 11.4 M | |
| Net Receivables | $ 164.0 M | |
| Inventory | $ 149.6 M | |
| Long-Term Investments | $ 9.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 47.5 M | |
| Short-Term Debt | $ 111.3 M | |
| Total Current Liabilities | $ 282.2 M | |
| Net Debt | $ 99.9 M | |
| Total Debt | $ 158.3 M | |
| Total Liabilities | $ 410.0 M | |
| EQUITY | ||
| Total Equity | $ 1.0 B | |
| Retained Earnings | $ 1.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.72 | |
| Shares Outstanding | 107.254 M | |
| Revenue Per-Share | $ 2.66 | |
| VALUATION | Market Capitalization | $ 5.8 B |
| Enterprise Value | $ 6.0 B | |
| Enterprise Multiple | 69.241 | |
| Enterprise Multiple QoQ | 18.728 % | |
| Enterprise Multiple YoY | -36.132 % | |
| Enterprise Multiple IPRWA | high: 133.234 TREX: 69.241 median: 68.27 mean: 67.181 low: -21.375 |
|
| EV/R | 20.967 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.393 | |
| Asset To Liability | 3.543 | |
| Debt To Capital | 0.132 | |
| Debt To Assets | 0.109 | |
| Debt To Assets QoQ | -43.08 % | |
| Debt To Assets YoY | 97.303 % | |
| Debt To Assets IPRWA | high: 0.788 mean: 0.323 median: 0.25 TREX: 0.109 low: 0.002 |
|
| Debt To Equity | 0.152 | |
| Debt To Equity QoQ | -48.987 % | |
| Debt To Equity YoY | 92.605 % | |
| Debt To Equity IPRWA | high: 1.445 median: 0.554 mean: 0.4 TREX: 0.152 low: -1.565 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.598 | |
| Price To Book QoQ | -16.15 % | |
| Price To Book YoY | -31.963 % | |
| Price To Book IPRWA | high: 11.181 mean: 6.784 median: 5.732 TREX: 5.598 low: 0.209 |
|
| Price To Earnings (P/E) | 106.692 | |
| Price To Earnings QoQ | 28.53 % | |
| Price To Earnings YoY | -41.697 % | |
| Price To Earnings IPRWA | high: 252.187 TREX: 106.692 mean: 89.859 median: 86.426 low: -125.021 |
|
| PE/G Ratio | -3.54 | |
| Price To Sales (P/S) | 20.452 | |
| Price To Sales QoQ | 20.087 % | |
| Price To Sales YoY | -34.572 % | |
| Price To Sales IPRWA | TREX: 20.452 high: 19.814 mean: 11.816 median: 10.916 low: 0.477 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 108.448 | |
| Forward PE/G | -3.598 | |
| Forward P/S | 72.455 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.183 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.191 | |
| Asset Turnover Ratio QoQ | -21.773 % | |
| Asset Turnover Ratio YoY | 3.588 % | |
| Asset Turnover Ratio IPRWA | high: 0.445 mean: 0.279 median: 0.271 TREX: 0.191 low: 0.119 |
|
| Receivables Turnover | 1.254 | |
| Receivables Turnover Ratio QoQ | 10.284 % | |
| Receivables Turnover Ratio YoY | 9.989 % | |
| Receivables Turnover Ratio IPRWA | high: 3.048 mean: 1.725 median: 1.593 TREX: 1.254 low: 0.991 |
|
| Inventory Turnover | 1.166 | |
| Inventory Turnover Ratio QoQ | -19.199 % | |
| Inventory Turnover Ratio YoY | 39.761 % | |
| Inventory Turnover Ratio IPRWA | high: 2.671 median: 1.467 mean: 1.344 TREX: 1.166 low: 0.131 |
|
| Days Sales Outstanding (DSO) | 72.787 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 107.951 | |
| Cash Conversion Cycle Days QoQ | -14.789 % | |
| Cash Conversion Cycle Days YoY | -15.243 % | |
| Cash Conversion Cycle Days IPRWA | high: 192.11 TREX: 107.951 mean: 72.727 median: 54.627 low: -4.745 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.132 | |
| CapEx To Revenue | -0.201 | |
| CapEx To Depreciation | -3.58 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.0 B | |
| Net Invested Capital | $ 1.2 B | |
| Invested Capital | $ 1.2 B | |
| Net Tangible Assets | $ 1.0 B | |
| Net Working Capital | $ 55.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.04 | |
| Current Ratio | 1.197 | |
| Current Ratio QoQ | 10.703 % | |
| Current Ratio YoY | -14.741 % | |
| Current Ratio IPRWA | high: 6.403 mean: 1.958 median: 1.544 TREX: 1.197 low: 0.708 |
|
| Quick Ratio | 0.667 | |
| Quick Ratio QoQ | -10.23 % | |
| Quick Ratio YoY | 1.697 % | |
| Quick Ratio IPRWA | high: 4.623 mean: 1.288 median: 0.863 low: 0.747 TREX: 0.667 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.832 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | 14079.4 | |
| Interest Coverage Ratio QoQ | -31.252 % | |
| Interest Coverage Ratio YoY | 29.635 % | |
| Interest Coverage Ratio IPRWA | TREX: 14079.4 high: 51.973 mean: 16.605 median: 15.913 low: -18.989 |
|
| Operating Cash Flow Ratio | 0.595 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 22.723 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -5.552 % | |
| Revenue Growth | -26.419 % | |
| Revenue Growth QoQ | -287.888 % | |
| Revenue Growth YoY | -30.328 % | |
| Revenue Growth IPRWA | high: 23.324 % median: -0.068 % mean: -2.015 % low: -15.024 % TREX: -26.419 % |
|
| Earnings Growth | -30.137 % | |
| Earnings Growth QoQ | -239.092 % | |
| Earnings Growth YoY | -43.931 % | |
| Earnings Growth IPRWA | high: 94.737 % mean: -2.131 % median: -10.526 % TREX: -30.137 % low: -63.636 % |
|
| MARGINS | ||
| Gross Margin | 40.455 % | |
| Gross Margin QoQ | -0.79 % | |
| Gross Margin YoY | 1.444 % | |
| Gross Margin IPRWA | high: 64.041 % TREX: 40.455 % median: 36.023 % mean: 34.783 % low: 16.122 % |
|
| EBIT Margin | 24.671 % | |
| EBIT Margin QoQ | -6.567 % | |
| EBIT Margin YoY | 6.18 % | |
| EBIT Margin IPRWA | high: 27.681 % TREX: 24.671 % median: 19.979 % mean: 16.072 % low: -24.883 % |
|
| Return On Sales (ROS) | 24.671 % | |
| Return On Sales QoQ | -6.567 % | |
| Return On Sales YoY | 6.18 % | |
| Return On Sales IPRWA | high: 25.101 % TREX: 24.671 % median: 20.293 % mean: 17.36 % low: -11.787 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 139.6 M | |
| Free Cash Flow Yield | 2.392 % | |
| Free Cash Flow Yield QoQ | -20.479 % | |
| Free Cash Flow Yield YoY | 220.643 % | |
| Free Cash Flow Yield IPRWA | high: 6.725 % TREX: 2.392 % mean: 1.649 % median: 1.015 % low: -3.853 % |
|
| Free Cash Growth | -29.757 % | |
| Free Cash Growth QoQ | -83.903 % | |
| Free Cash Growth YoY | -54.612 % | |
| Free Cash Growth IPRWA | high: 482.946 % mean: 71.663 % median: 55.364 % TREX: -29.757 % low: -294.449 % |
|
| Free Cash To Net Income | 2.696 | |
| Cash Flow Margin | 58.818 % | |
| Cash Flow To Earnings | 3.242 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.462 % | |
| Return On Assets QoQ | -27.513 % | |
| Return On Assets YoY | 8.289 % | |
| Return On Assets IPRWA | high: 6.849 % median: 3.566 % TREX: 3.462 % mean: 3.138 % low: -6.099 % |
|
| Return On Capital Employed (ROCE) | 6.015 % | |
| Return On Equity (ROE) | 0.05 | |
| Return On Equity QoQ | -35.28 % | |
| Return On Equity YoY | 8.737 % | |
| Return On Equity IPRWA | high: 0.23 median: 0.062 mean: 0.056 TREX: 0.05 low: -0.203 |
|
| DuPont ROE | 5.096 % | |
| Return On Invested Capital (ROIC) | 4.485 % | |
| Return On Invested Capital QoQ | -26.99 % | |
| Return On Invested Capital YoY | -93.68 % | |
| Return On Invested Capital IPRWA | high: 16.563 % median: 6.76 % mean: 6.476 % TREX: 4.485 % low: -4.022 % |
|