Trex Co. Inc. (TREX) intrinsic value & 10-year financials

Trex Co. Inc. (TREX) has a Graham intrinsic value of $54.30 per share. At $45.73 on Oct 17, 2026, the stock trades 16% below that value. Over the last 10 fiscal years revenue grew 10.5% a year to $1.2B, with an average return on invested capital of 40.2%.

Graham intrinsic value
$54.30
Share price (Oct 17, 2026)
$45.73
Price vs Graham value
16% below
Market cap
$4.9B
Revenue (FY2025)
$1.2B
Revenue growth (10-yr CAGR)
10.5%
ROIC (10-yr avg)
40.2%
Free cash flow (FY2025)
$134.5M

TREX 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $1.2B $190.4M $1.78 $134.5M 22.0% 19.4%
FY2024 $1.2B $226.4M $2.09 -$88.4M 26.5% 27.9%
FY2023 $1.1B $205.4M $1.89 $223.3M 25.2% 32.5%
FY2022 $1.1B $184.6M $1.65 $40.0M 22.3% 32.3%
FY2021 $1.2B $208.7M $1.80 $98.7M 23.0% 37.7%
FY2020 $880.8M $175.6M $1.51 $14.5M 26.5% 42.1%
FY2019 $745.3M $144.7M $1.24 $89.1M 25.2% 50.2%
FY2018 $684.2M $134.6M $1.14 $104.3M 25.8% 56.7%
FY2017 $565.2M $95.1M $0.81 $86.8M 25.2% 52.2%
FY2016 $479.6M $67.8M $0.57 $70.7M 21.7% 51.1%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

TREX CO INC is a consistent compounder, expanding top-line revenue at 10.5% annually over the past decade.

TREX CO INC has earned high returns on invested capital, averaging 40.2% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

TREX CO INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, TREX CO INC is modeled at 13.4% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $54.30 per share.

TREX stock: frequently asked questions

What is the intrinsic value of Trex Co. Inc. (TREX) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 13.4% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, TREX's intrinsic value is about $54.30 per share.

Is TREX stock undervalued?

At $45.73 (close on Oct 17, 2026), TREX trades 16% below its Graham value of $54.30. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Trex Co. Inc. grown?

Revenue went from $479.6M in fiscal 2016 to $1.2B in fiscal 2025, a compound annual growth rate of 10.5%. Net income was $190.4M in fiscal 2025.

Does Trex Co. Inc. generate free cash flow?

Trex Co. Inc. generated $134.5M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 9 of the last 10 reported years.

What is TREX's return on invested capital?

Average ROIC over the last 10 fiscal years was 40.2%, and average return on equity was 36.4%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this TREX data come from?

From Trex Co. Inc.'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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