Is TREX CO INC (TREX) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 4.7% / 30% | 0.1% / 30% | 1.2% / 30% | 0.0% / 5% | ✓ HALAL |
| DJIM | 4.7% / 33% | 0.1% / 33% | 1.2% / 33% | 0.0% / 5% | ✓ HALAL |
| MSCI | 12.9% / 33% | 0.3% / 33% | 3.5% / 33% | 0.0% / 5% | ✓ HALAL |
| S&P | 4.7% / 33% | 0.1% / 33% | 1.2% / 33% | 0.0% / 5% | ✓ HALAL |
| FTSE | 12.9% / 33% | 0.3% / 33% | 3.5% / 50% | 0.0% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 39.2% | |
| Operating Margin | 2.2% | |
| Net Margin | 16.2% | |
| Return on Equity (ROE) | 19.8% | |
| Return on Assets (ROA) | 11.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $358M |
| Free Cash Flow | $125M |
| Total Debt | $187M |
| Debt-to-Equity | 18.1 |
| Current Ratio | 1.2 |
| Total Assets | $1.5B |
Price & Trading
| Last Close | $36.68 |
| 50-Day MA | $40.58 |
| 200-Day MA | $47.91 |
| Avg Volume | 2.0M |
| Beta | 1.6 |
|
52-Week Range
$29.77
| |
About TREX CO INC (TREX)
Trex Company, Inc. manufactures and sells composite decking and railing products in the United States. It offers decking products and accessories that can be used for protection against fading, staining, mold, and scratching, including Trex Transcend, which are decking products that can also be used as cladding; Trex Signature; Trex Transcend Lineage; Trex Select; Trex Enhance; Trex Hideaway fastener collection; and Trex DeckLighting, an outdoor lighting system that includes a post cap, deck rail, riser, a soffit, and a recessed deck lights. The company also offers railing products, such as Trex Signature X-Series Railing, Trex Signature aluminum railing, Trex Transcend Railing, Trex Select Railing, Trex Select T-Rail, Trex Enhance Railing; and fencing products, which includes Trex Seclusions that consists of structural posts, bottom rails, pickets, top rails, and decorative post caps. In addition, it acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Protect joist, beam and rim tape, a self-adhesive butyl tape that protects wooden deck framing/substructure elements; Trex RainEscape Soffit Light, a plug-and-play LED Soffit light that is installed in the under-deck ceiling of a two-story deck; Trex Seal Ledger Flashing Tape, butyl flashing tape with an aluminum liner; Trex Pergola, Pergolas made from low maintenance aluminum reinforced cellular PVC; Trex Lattice outdoor boards; Trex Cornhole boards; Trex Blade, a specialty saw blade for wood-alternative composite decking; Trex SpiralStairs; and Trex Outdoor Kitchen cabinetry. The company sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.
Related Halal Stocks in Industrials
Frequently Asked Questions
Is TREX CO INC (TREX) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), TREX CO INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is TREX CO INC's debt ratio?
TREX CO INC's debt ratio is 4.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 12.9%.
What are TREX CO INC's key financial metrics?
TREX CO INC has a market capitalization of $3.7B, trailing P/E ratio of 20.0, and revenue of $1.2B. The company maintains a gross margin of 39.2% and a net margin of 16.2%. Return on equity stands at 19.8%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.