Trex Company Inc. (TREX) exhibits 39.2% gross margins and 16.9% return on invested capital within Materials (Forest Products), balanced against a 11.9x enterprise multiple and 6.5% implied options volatility.
Sustained 39.2% gross profitability converts into 22.0% operating margin and 16.9% ROIC, outpacing sector cost of capital.
ROIC: 16.9% // GM: 39.2%YoY revenue trajectory of +2.0% paired with 2.60% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +2.0% // FCF YLD: 2.60%Altman Z-Score of 10.58 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 10.58 // F-SCORE: 7/9Trading at 27.2x trailing P/E (25.3x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 27.2x // EV/EBITDA: 11.9xOptions market prices a ±6.5% implied move with a 0.65 put/call ratio around $50.00 max pain.
IMPL MOVE: ±6.5% // P/C: 0.65Elevated industry capital intensity and customer concentration in Forest Products require continuous execution to defend 16.2% net margins.
NET MARGIN: 16.2% // D/E: 0.17x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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