“We’ve been growing much faster since the crisis began by taking lots of market share from wood.” He notes that pre-COVID, composite was already gaining on lumber. “We can sell as much as we can make,” says Fairbanks. Its factories are still operating at maximum capacity. Virginia and Nevada, the states where its plants are located, deemed construction materials an essential industry. An essential industryĭuring the dark days of the pandemic, Trex was free to keep producing at full tilt. The reason: Wall Street’s awarded Trex a vertiginous price-to-earnings multiple of sixty-one, meaning investors expect go-go growth in the years to come. It now boasts an $11.2 billion valuation––a number that’s astounding for Trex’s modest size. Trex is virtually the only one in the first twenty-five that manufactures a final product that isn’t apparel in its own factories. The other top performers are mainly young electronics and healthcare players. That record is the 24th highest in the S&P 1000. Over the past five years, Trex’s shares have vaulted from $11 to $97 delivering a 767% total return. Last year, its revenues vaulted 18% to $881 million, followed in Q1 by a 23% year-over-year jump, and for Q2, CEO Bryan Fairbanks forecasts a gain of 36%. It’s been posting numbers more typical of a software or biotech star than an old-line manufacturer. Trex, a three-decade-old Virginia stalwart, controls half the composite market, a share twice that of its closest competitor.
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