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Trex Company, Inc. TREX

Trex Company, Inc. scores average on business quality (5.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$44.78Oct 9, 2026
Business qualityAverage
Next earningsNov 4, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Trex Company, Inc. does

    Trex manufactures wood-alternative decking and railing products, selling primarily through a network of professional contractors, distributors, and big-box home improvement retailers. Homeowners pay a premium for recycled-composite materials that replace traditional timber.

  2. What it does best

    Trex dominates the wood-alternative decking market with an operating margin of 20.2%, beating peers like BLDR at 3.0%. This margin advantage stems from proprietary processing tech and scale that lower unit costs, making it tough for rivals to match pricing.

  3. The main risk

    Softer demand and rising capital intensity threaten near-term cash generation. With capital expenditures running at $160 million on $1.2B in revenue, cash flow conversion faces pressure if volume stalls further.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margins hit 20.2% and FCF margins reached 74th percentile in the sector, driven by manufacturing efficiencies. The business scales profitably when volume holds steady.

MoatFair

Its brand and distribution network lock in contractors and homeowners, backed by an operating margin sitting in the sector's top quartile at the 77th percentile.

GrowthSlow

Revenue grew at 2.0% to $1.2 billion, reflecting a sharp deceleration compared to historical multi-year periods where growth regularly outpaced current levels.

Financial healthStrong

Debt-to-equity sits at 0.13 with net debt of $130 million, leaving the balance sheet clean. Free cash flow rebounded to $198 million, showing strengthening financial flexibility.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $53K outside pre-planned sales.

Our sealed record on TREX

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TREX a good business?

Trex Company, Inc. scores average on the Cluenex quality check (5.8 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health strong.

Are insiders buying TREX?

In the last 90 days of SEC Form 4 filings: 1 sold $53K outside pre-planned sales.

When does TREX report earnings?

Nov 4, 2026.

For members

See TREX today

  • Today's verdict on TREX, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Trex Company, Inc. (TREX)”, https://cluenex.com/stocks/trex/, data as of Oct 10, 2026.