Trex Co Inc (TREX) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 2026
Trex Co Inc (TREX)
A forensic read on Trex Co Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
17.7
Distress distance
Clean
Earnings quality
3
Forensic signals
26.6
P / E (ttm)
18.4%
ROE
$4.9B
Market cap
2.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Trex Co Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 17.7, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+15.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +15.1% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by payables paid down 43% against +10% in cost of sales and PP&E up +14% against revenue +2%. This is the third straight fiscal year of building accruals — a multi-year streak is a materially stronger tell than a single year's move. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 18% of net operating assets, diverging from the balance-sheet accrual read.
127d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 102 to 127 FY2024→FY2025 (against cost of goods sold; inventory -7% vs +10% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
$54M
FY2021–FY2021
Goodwill impairments.Took $54M of goodwill writedowns across 1 year (FY2021 ($54M)) — about 26% of net income over the span. Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$1.17B
Revenue Growth YoY+2.0%
Revenue CAGR (3yr)+2.0%
Net Margin16.2%
Free Cash Flow$134.5M
Return on Equity18.4%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Trex Co Inc's actual 10-K/10-Q/8-K filings?