Evaluating Trex Co: Insights From 9 Financial Analysts

During the last three months, 9 analysts shared their evaluations of Trex Co TREX, revealing diverse outlooks from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $99.89, a high estimate of $120.00, and a low estimate of $86.00. This current average reflects an increase of 21.98% from the previous average price target of $81.89.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Trex Co among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Trex Co. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Trex Co compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Trex Co's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Trex Co's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Trex Co analyst ratings.

Unveiling the Story Behind Trex Co

Trex Co Inc is a manufacturer of wooden alternative decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in one reportable segment i.e. Trex Residential.

Unraveling the Financial Story of Trex Co

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Trex Co showcased positive performance, achieving a revenue growth rate of 1.9% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Trex Co's net margin is impressive, surpassing industry averages. With a net margin of 11.21%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Trex Co's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.12%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Trex Co's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 2.28%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.04.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.