This is our first report on Trex, one of the largest manufacturers of high-performance, wood-alternative railing and decking, as well as a leader in eco-friendly, low-maintenance living products in the world. The company delivered a disappointing set of results in the last quarter, failing to meet Wall Street expectations with respect to its revenues. The management claims that the demand for consumer sell-through remained at healthy levels despite the increasing interest rates. Trex Commercial and Staging Concepts partners to showcase the Concept-to-Completion abilities at LDI2022 for Entertainment Venues. The launch of the new Trex Transcend lineage product line of the company has been received favorably in the market. In this quarter, Trex partnered with two more distribution locations in Texas, which enabled it to expand and service the availability of the products of Trex Outdoor Living in the fastest-growing markets. Trex partnered with DW Distribution to elevate and expand services in the region of South Central. Moreover, the company has bolstered its services in the growing market of Texas with the addition of Snavely Forest Products. During this quarter, it continued the generation of free-cash flows, repurchased shares of its outstanding common stock, invested in its operations, and continued its manufacturing expansion in Arkansas. Arkansas stays a core aspect of the growth strategy of the company because of its strategic advantages. We initiate coverage on the stock of Trex Company with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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