Latest Ratios: P/E Ratio 27.2x · EV/EBITDA 16.4x · ROE 20.2%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.0B | $3.8B | $7.5B | $9.0B | $4.7B | $15.6B | $9.7B | $5.3B | $3.5B | $3.2B | $1.9B |
| Enterprise Value | $5.3B | $4.0B | $7.7B | $9.0B | $5.0B | $15.5B | $9.6B | $5.2B | $3.4B | $3.2B | $1.9B |
| P/E Ratio → | 27.23 | 19.71 | 33.03 | 43.80 | 25.65 | 75.02 | 55.44 | 36.54 | 26.04 | 33.45 | 28.25 |
| P/S Ratio | 4.29 | 3.20 | 6.49 | 8.23 | 4.28 | 13.06 | 11.05 | 7.07 | 5.12 | 5.67 | 3.98 |
| P/B Ratio | 5.02 | 3.63 | 8.80 | 12.57 | 9.14 | 21.56 | 16.54 | 11.74 | 10.22 | 13.86 | 14.21 |
| P/FCF | 37.44 | 27.93 | — | 40.34 | 118.42 | 158.42 | 672.57 | 59.18 | 33.62 | 36.92 | 26.96 |
| P/OCF | 14.06 | 10.49 | 51.95 | 23.13 | 21.90 | 60.57 | 51.96 | 33.72 | 25.39 | 31.47 | 22.36 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.39 | 6.71 | 8.26 | 4.50 | 12.97 | 10.95 | 6.93 | 4.97 | 5.62 | 3.94 |
| EV / EBITDA | 16.39 | 12.41 | 21.46 | 27.69 | 17.10 | 49.87 | 38.34 | 25.54 | 17.60 | 19.94 | 15.94 |
| EV / EBIT | 20.40 | 15.44 | 25.29 | 32.72 | 18.98 | 48.38 | 41.11 | 27.44 | 19.23 | 22.30 | 18.17 |
| EV / FCF | — | 29.60 | — | 40.47 | 124.45 | 157.35 | 666.59 | 57.97 | 32.60 | 36.57 | 26.69 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 39.2% | 39.2% | 42.2% | 41.3% | 36.5% | 38.5% | 40.8% | 41.1% | 43.1% | 43.1% | 39.0% |
| Operating Margin | 22.0% | 22.0% | 26.5% | 25.2% | 22.3% | 23.0% | 26.5% | 25.2% | 25.8% | 25.2% | 21.7% |
| Net Profit Margin | 16.2% | 16.2% | 19.7% | 18.8% | 16.7% | 17.4% | 19.9% | 19.4% | 19.7% | 16.8% | 14.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.2% | 20.2% | 28.9% | 33.3% | 29.7% | 31.8% | 33.8% | 36.5% | 46.9% | 52.1% | 54.1% |
| ROA | 13.5% | 13.5% | 20.1% | 22.0% | 19.9% | 24.7% | 25.8% | 27.4% | 34.0% | 34.7% | 31.3% |
| ROIC | 16.4% | 16.4% | 24.8% | 27.5% | 26.8% | 36.8% | 41.5% | 48.8% | 60.5% | 67.5% | 66.9% |
| ROCE | 23.2% | 23.2% | 33.5% | 37.2% | 33.5% | 36.8% | 39.7% | 42.5% | 55.6% | 65.6% | 64.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.22 | 0.22 | 0.30 | 0.04 | 0.49 | 0.05 | 0.06 | 0.09 | — | — | — |
| Debt / EBITDA | 0.71 | 0.71 | 0.71 | 0.10 | 0.87 | 0.11 | 0.14 | 0.20 | — | — | — |
| Net Debt / Equity | — | 0.22 | 0.30 | 0.04 | 0.47 | -0.15 | -0.15 | -0.24 | -0.31 | -0.13 | -0.14 |
| Net Debt / EBITDA | 0.70 | 0.70 | 0.71 | 0.09 | 0.83 | -0.34 | -0.34 | -0.53 | -0.55 | -0.19 | -0.16 |
| Debt / FCF | — | 1.67 | — | 0.13 | 6.03 | -1.07 | -5.97 | -1.21 | -1.01 | -0.35 | -0.26 |
| Interest Coverage | — | — | — | 55240.80 | — | — | — | — | — | 308.85 | 92.40 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.24 | 1.24 | 0.93 | 1.89 | 0.99 | 4.52 | 3.03 | 3.85 | 2.91 | 2.38 | 2.06 |
| Quick Ratio | 0.29 | 0.29 | 0.33 | 0.72 | 0.50 | 3.58 | 2.39 | 3.14 | 2.29 | 1.83 | 1.50 |
| Cash Ratio | 0.02 | 0.02 | 0.00 | 0.02 | 0.04 | 1.59 | 1.14 | 1.89 | 1.14 | 0.49 | 0.36 |
| Asset Turnover | — | 0.79 | 0.87 | 1.17 | 1.18 | 1.30 | 1.14 | 1.26 | 1.47 | 1.73 | 2.17 |
| Inventory Turnover | 2.99 | 2.99 | 3.21 | 6.00 | 4.97 | 8.79 | 7.64 | 7.82 | 6.74 | 9.32 | 10.25 |
| Days Sales Outstanding | — | 15.62 | 28.01 | 16.92 | 32.36 | 48.98 | 51.16 | 43.89 | 54.46 | 48.70 | 36.56 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 5.1% | 3.0% | 2.3% | 3.9% | 1.3% | 1.8% | 2.7% | 3.8% | 3.0% | 3.5% |
| FCF Yield | 2.7% | 3.6% | — | 2.5% | 0.8% | 0.6% | 0.1% | 1.7% | 3.0% | 2.7% | 3.7% |
| Buyback Yield | 1.1% | 1.4% | 1.4% | 0.2% | 8.4% | 0.5% | 0.5% | 0.9% | 0.9% | 0.1% | 2.9% |
| Total Shareholder Yield | 1.1% | 1.4% | 1.4% | 0.2% | 8.4% | 0.5% | 0.5% | 0.9% | 0.9% | 0.1% | 2.9% |
| Shares Outstanding | — | $107M | $108M | $109M | $112M | $116M | $116M | $117M | $118M | $118M | $118M |
Liquidity and seasonal volatility
Based on current market data, Trex trades at a forward P/E of 29.68, a multiple that appears to price in a growth trajectory significantly higher than the 1.98% revenue expansion recently reported, suggesting investors are paying a premium for historical brand dominance rather than current operational momentum.
The elevated P/E and P/FCF multiples relative to the broader industrial sector imply that the market expects a return to high-margin growth that may not materialize in the current interest-rate environment. Investors should monitor whether this valuation gap narrows as the company's capacity expansion in Arkansas faces the reality of a plateauing residential renovation market.
According to recent financial disclosures, Trex's ROIC has compressed to 4.7% in 2026Q1, a sharp decline from the 9.9% levels seen in early 2024, indicating that the company's massive investment in manufacturing infrastructure is currently failing to generate the historical returns on capital that previously defined its competitive advantage.
The decay in ROIC suggests that the company is struggling to maintain efficiency as it scales its asset base during a period of softening demand. This trend warrants further investigation into whether the new capacity will eventually drive margin expansion or if it will remain a drag on returns due to persistent underutilization.
As reported in quarterly filings, the cash conversion cycle has extended to 130 days in 2026Q1, driven by a significant buildup in inventory days to 103, which highlights the company's increasing difficulty in balancing seasonal production requirements with the current pace of retail sell-through.
The lengthening of the CCC suggests that Trex is becoming more reliant on external financing to manage its inventory-heavy business model. This inefficiency appears to be a structural byproduct of the company's need to stock big-box retailers ahead of the spring season, leaving it vulnerable to sudden shifts in consumer demand.
Based on the most recent balance sheet, Trex's cash and equivalents have fallen to a precarious $3.8 million, resulting in a current ratio of 1.02, which leaves the company with minimal room for error should operational cash flows fail to meet the demands of its ongoing capital expenditure program.
This liquidity position appears exceptionally tight for a manufacturer with such high fixed-cost obligations and seasonal working capital needs. Investors should monitor the company's ability to maintain its current debt-to-equity ratio of 0.44 without needing to tap into more expensive financing sources to bridge the gap during the Arkansas plant ramp-up.
The market frequently misapplies the P/S ratio to Trex as a simple proxy for housing market health, which obscures the reality that the company is fundamentally a reverse-logistics and waste-processing operation with high sensitivity to recycled plastic feedstock costs rather than just residential renovation volume.
By focusing on top-line revenue multiples, analysts often overlook the critical importance of the company's proprietary scrap-sourcing network, which is the true driver of its margin advantage. A more accurate assessment would involve adjusting for the cost of LDPE scrap and the efficiency of the company's unique supply chain, rather than treating it as a standard building products manufacturer.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying TREX stock.
Trex Company, Inc.'s current P/E ratio is 27.2x. The historical average is 45.6x. This places it at the 27th percentile of its historical range.
Trex Company, Inc.'s current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.9x.
Trex Company, Inc.'s return on equity (ROE) is 20.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.2%.
Based on historical data, Trex Company, Inc. is trading at a P/E of 27.2x. This is at the 27th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Trex Company, Inc. has 39.2% gross margin and 22.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Trex Company, Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.