Forensic Analysis · Lumber & Wood Products · as of Nov 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.
B · Sound & dependable
Forensic grade
Safe
Financial health
8.1
Distress distance
Clean
Earnings quality
2
Forensic signals
19.8%
ROE
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 (auditor quality, say on pay, board independence, going concern). 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 B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 8.1, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+14.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +14.1% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $9.5M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by payables paid down 43% against +10% in cost of sales and PP&E up +14% against revenue +2%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 18% of net operating assets, against an accruals ratio of 14.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
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 ended the year no higher than it began, but days on hand lengthened on the year's average balance — watch for markdowns.
Key fundamentals
Latest Revenue$1.17B
Revenue Growth YoY+2.0%
Revenue CAGR (2yr)+3.6%
Net Margin16.2%
Free Cash Flow$134.5M
Return on Equity19.8%
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?