Trex Co. Inc. (TREX) has seen robust sales growth over the past few years. That growth in sales coupled with lower tax rate and increased share buybacks added to the dramatic increase in profitability in 2018. But the uncertain economic condition, increased inventory, and increased competition add risks to the company in 2019.
Trex - Stellar Performance in 2017 and 2018
Trex operates under two segments:
Trex Residential Products
Trex Commercial
(Source: Trex Website)
In 2017, Trex saw a 17.8% increase in net sales compared to the year ended in 2016. The increase