Deep Dive: Trex Company With Jason Hall
This week we brought on first-time guest Jason Hall to discuss Trex Company, the leader in composite decking. Jason has been following the company for a decade and knows it inside and out. You can follow him on Twitter here. Here are some questions we asked Jason:
How’d you come across Trex?
What does Trex do? Can you explain what composite decking is for anyone who isn’t familiar?
What are the pros and cons of composite decking from a customer’s perspective?
Looks like Trex sells into the big home improvement stores (61% of sales come from 3 largest customers). Do you see this as a risk? Or is their relationship with Lowe’s and HD more of a strength?
Is there any possibility that Trex could go direct-to-consumer?
Who are Trex’s main competitors? Does Trex have any major advantages?
How big is the market opportunity for composite decking?
Do you think Trex can expand its margins any further?
Thoughts on the valuation? Do you like the buyback program?
How do material, energy, shipping, and other inflationary costs impact Trex, if at all?
What are the biggest risks to Trex as an investment today?
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