Trex Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>TRE</div>
TREX -- USA Stock  

USD 70.79  0.27  0.38%

Trex Tangible Asset Value is fairly stable at the moment as compared to the past year. Trex reported Tangible Asset Value of 242.54 Million in 2019. Interest Coverage is likely to grow to 299.91 in 2020, whereas Revenue Per Employee is likely to drop slightly above 583.7 K in 2020. The goal of this article is to forecast a future value of Trex using technical analysis. What exactly are Trex investors should expect in September?
Published over a month ago
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Are Trex (NYSE:TREX) investors starting to hold back?
This firm has a beta of -0.1665. Let's try to break down what Trex's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Trex will likely underperform. The beta indicator helps investors understand whether Trex moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Trex deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Trex Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Trex


How important is Trex's Liquidity

Trex financial leverage refers to using borrowed capital as a funding source to finance Trex Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Trex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Trex's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Trex, but it might be worth checking our own buy vs. sell analysis

Sale by James Cline of 6114 shares of Trex

Legal trades by Trex insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Trex insider trading alert for sale of common stock by James Cline, the corporate stakeholder, on 6th of August 2020. This event was filed by Trex Co Inc with SEC on 2020-08-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Trex Indicators

Trex Company currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.58. However, we do advice investors to further question Trex Company expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Margin Breakdown

20.95
Profit Margin
27.24
Operating Margin
22.08
EBITDA Margin
Operating Margin27.24
EBITDA Margin22.08
Gross Margin35.96
Profit Margin20.95

Trex has a small chance to finish above $142 in 2 months

Current variance is at 10.34. Trex Company currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.58. However, we do advice investors to further question Trex Company expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Trex

While some other entities in the building products & equipment industry are either recovering or due for a correction, Trex may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 2nd of August 2020, our analysis shows that Trex moves indifferently to market moves. The company is overvalued and projects very small chance of financial distress for the next 2 years. Our overall 30 days buy-or-sell advice on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Trex Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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