TREX - Trex Company: Moving Out Of This Outdoor Play

2024-04-08 12:46:57 ET

Summary

• Trex Company, Inc. provides composite decks and other outdoor living products that offer superior quality and durability compared to wood.
• Despite a strong performance in 2023, Trex Company has experienced a challenging 2022 due to tough comparables, higher interest rates, and a softening housing market, as 2023 was more of the same.
• Despite a relatively solid performance in 2023, Trex shares have re-rated and trade at demanding multiples, raising concerns about future growth.

Earl in 2023, I believed that Trex Company, Inc. ( TREX ) had seen a tougher 2022 than it previously thought. Despite these concerns, driven by tough comparables, higher interest rates, and a resulting softening housing market, I was upbeat on the long term secular growth story, with its composite products gaining market share compared to wood....

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