Is the business good?
How good a business is TREX?
Trex Company, Inc. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
15%
Return on invested capital · cost of capital 9.0% · 5.9 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Building Products & Equipment median 16% · 12 months to Q1 2026
- Cash conversion
- 1.18×
Cash conversion · −0.53× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 23% |
| FY2022 | 22% |
| FY2023 | 25% |
| FY2024 | 28% |
| FY2025 | 22% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- 22%
- Net margin12 months to Q1 2026
- 16%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $1.18B
- Free cash flow, trailing twelve months
- $226M
- Net income, trailing twelve months
- $191M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Building Products & Equipment
Ranks #12 of 18 by Smart Score