![]() So, based on the above formula, the ROE for Trex Company is:Ģ8% = US$155m ÷ US$560m (Based on the trailing twelve months to March 2023). Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity View our latest analysis for Trex Company How To Calculate Return On Equity? In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Particularly, we will be paying attention to Trex Company's ROE today. However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. To read this article on click here.Trex Company (NYSE:TREX) has had a rough week with its share price down 8.8%. Click to get this free reportīoise Cascade, L.L.C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. ![]() By comparison, TREX has a P/B of 8.69.īased on these metrics and many more, BCC holds a Value grade of A, while TREX has a Value grade of C.īCC sticks out from TREX in both our Zacks Rank and Style Scores models, so value investors will likely feel that BCC is the better option right now. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TREX currently has a PEG ratio of 8.98.Īnother notable valuation metric for BCC is its P/B ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. We also note that BCC has a PEG ratio of 1.43. Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.īCC currently has a forward P/E ratio of 3.27, while TREX has a forward P/E of 24.62. Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels. ![]() But this is just one factor that value investors are interested in. Investors should feel comfortable knowing that BCC likely has seen a stronger improvement to its earnings outlook than TREX has recently. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.Ĭurrently, Boise Cascade has a Zacks Rank of #1 (Strong Buy), while Trex has a Zacks Rank of #3 (Hold). The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. Investors with an interest in Building Products - Wood stocks have likely encountered both Boise Cascade (BCC) and Trex (TREX).
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