Margin Breakdown
20.95
Profit Margin
27.24
Operating Margin
22.08
EBITDA Margin
| Operating Margin | 27.24 | |
| EBITDA Margin | 22.08 | |
| Gross Margin | 35.96 | |
| Profit Margin | 20.95 |
Are Trex (NYSE:TREX) investors starting to hold back?
 | By Vlad Skutelnik | Macroaxis Story |
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?
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Ellen Johnson
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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Trex. Your research has to be compared to or analyzed against Trex's peers to derive any actionable benefits. When done correctly, Trex's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Trex Company.
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 Company. 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
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Trex's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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. Financial leverage can amplify the potential profits to Trex's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Trex's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Trex's total debt and its cash.
Trex Gross Profit
Trex Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Trex previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Trex Gross Profit growth over the last 10 years. Please check Trex's gross profit and other fundamental indicators for more details.
What is driving Trex Investor Appetite?
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.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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.