What Trex Company (TREX)'s Softer Demand and Rising Capital Intensity Means For Shareholders

Trex Company, a maker of wood-alternative decking, railing, and outdoor furniture, has recently reported that customers are postponing purchases, contributing to a 1.7% annual revenue decline over the past two years alongside rising capital intensity. This combination of softer demand and diminishing returns on capital suggests earlier profit pools may be harder to replicate, prompting closer scrutiny of Trex’s business model resilience. Next, we’ll examine how soft demand and rising capital...