15 Analysts Assess Trex Co: What You Need To Know

Throughout the last three months, 15 analysts have evaluated Trex Co TREX, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Trex Co and provided 12-month price targets. The average target is $88.27, accompanied by a high estimate of $105.00 and a low estimate of $70.00. Highlighting a 13.46% decrease, the current average has fallen from the previous average price target of $102.00.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Trex Co is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Trex Co. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Trex Co compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Trex Co's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Trex Co's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Trex Co analyst ratings.

Delving into Trex Co's Background

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.

Key Indicators: Trex Co's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Trex Co showcased positive performance, achieving a revenue growth rate of 56.52% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Trex Co's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 23.84% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Trex Co's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 11.71%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Trex Co's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 8.0%, the company showcases efficient use of assets and strong financial health.

Debt Management: Trex Co's debt-to-equity ratio is below the industry average at 0.31, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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