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Century Communities
(NYSE:CCS)
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Rating:75Outperform
Price Target:
$73.00
▲(5.22% Upside)
Action:Reiterated
Date:07/23/26
Century Communities earns a 75 overall score, driven primarily by solid but cyclically pressured financials and attractive valuation: the business maintains strong scale, a growing equity base, and manageable leverage, yet margins and cash generation have weakened from prior peaks, reflecting housing-cycle and rate headwinds. Supporting this, technicals show stable, mildly positive momentum without extreme conditions, and the latest earnings call and corporate actions add incremental strength through raised guidance, margin and cost improvements, record community count and book value, disciplined capital allocation, and clear shareholder support. Together, these factors point to a fundamentally sound, moderately attractive stock with notable cyclicality and demand-risk that investors should monitor.
Positive Factors
Manageable leverage and equity base
Century's capital structure shows moderate leverage (debt-to-equity ~0.60) and a sizable equity base (~$2.6B). That durability provides financing flexibility to fund land buys, absorb cyclical downturns, and support capital allocation (dividends/repurchases) without immediate reliance on stressed external credit markets.
Negative Factors
Weak and volatile cash generation
Operating cash flow is modest relative to scale and free cash flow has declined sharply, driven by working-capital swings typical in homebuilding. This reduces internal funding for planned $1.0–$1.2B land spend, increases reliance on financing, and leaves less cushion for cyclical downturns or unexpected cost inflation.
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Positive Factors
Negative Factors
Manageable leverage and equity base
Century's capital structure shows moderate leverage (debt-to-equity ~0.60) and a sizable equity base (~$2.6B). That durability provides financing flexibility to fund land buys, absorb cyclical downturns, and support capital allocation (dividends/repurchases) without immediate reliance on stressed external credit markets.
Read all positive factors
Century Communities Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breakdown of revenue across business lines (for example, homebuilding, mortgage/finance, land sales), showing which parts of the company drive income and how diversified the business is. Shifts between segments can affect overall margins, cash flow timing and exposure to interest rates or land-market cycles.
Breakdown of revenue across business lines (for example, homebuilding, mortgage/finance, land sales), showing which parts of the company drive income and how diversified the business is. Shifts between segments can affect overall margins, cash flow timing and exposure to interest rates or land-market cycles.
Data provided by:
The Fly
The FlyCentury Communities (CCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend Yield1.82%
Average Volume (3M)239.37K
Price to Earnings (P/E)14.7
Beta (1Y)0.63
Revenue Growth-8.37%
EPS Growth-45.09%
CountryUS
Employees1,660
SectorReal Estate
Sector Strength53
IndustryResidential Construction
Share Statistics
EPS (TTM)4.58
Shares Outstanding28,432,900
10 Day Avg. Volume240,832
30 Day Avg. Volume239,370
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)0.69
Price to Sales (P/S)0.43
P/FCF Ratio14.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.93
Revenue Forecast (FY)$3.72B
Century Communities Business Overview & Revenue Model
Company Description
Century Communities, Inc. (NYSE: CCS) is a U.S. homebuilding company that develops, builds, and sells single-family homes and, in certain markets, attached homes (e.g., townhomes/condominiums), primarily targeting entry-level, first move-up, and l...
How the Company Makes Money
Century Communities primarily makes money by selling newly constructed homes to homebuyers. Its core revenue stream is home sales revenue, generally recognized at the time of closing when the home and title transfer to the buyer; the sales price r...
Century Communities Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial improvements: EPS growth (+11% YoY, +50% sequential), deliveries and orders that beat guidance, margin expansion (+30 bps adjusted gross margin), reduced direct construction costs (‑5% sequential), record community count (330) and a company record book value per share ($90.24). Management also raised full-year delivery and revenue guidance and executed share repurchases at substantial discounts to book value. Headwinds remain—primarily incentives (≈1,200 bps), SG&A pressure, macro uncertainty, potential vendor-driven land development cost increases, and elevated cancellation rates (13.2%). Increased ARM adoption (≈35%) helps affordability but creates longer-term rate-reset exposure. On balance, the positives around delivery/outperformance, margin improvement, cost control and capital allocation materially outweigh the challenges, though management continues to monitor incentives, input costs and rate-related demand risks.Positive Updates
Earnings Per Share Growth
GAAP net income of $36 million and diluted EPS of $1.26, an increase of 11% year-over-year and a 50% sequential increase.
Negative Updates
Incentives Remain a Material Margin Headwind
Incentives averaged ~1,200 basis points (12%) on delivered homes in Q2; while incentives declined ~50 basis points sequentially and ~100 basis points vs. Q4 2025, management noted incentives continue to be the most significant driver of homebuilding gross margin and remain a headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Per Share Growth
GAAP net income of $36 million and diluted EPS of $1.26, an increase of 11% year-over-year and a 50% sequential increase.
Read all positive updates
Company Guidance
Management raised the midpoint and low end of full‑year 2026 guidance, now expecting 9,750–10,500 home deliveries and $3.5–$3.8 billion of home sales revenue, with Q3 deliveries forecast at 2,500–2,700 homes; average community count is expected to rise low‑ to mid‑single‑digit percent year‑over‑year (Q2 average 321, ended at 330). They reiterated incentives on closed homes in Q3 should be consistent with H1 levels, expect finished lot costs for 2026 to be only 2–3% above Q4 2025, and plan $1.0–$1.2 billion of land acquisition and development spend (adjustable by market conditions). Financial targets include SG&A roughly 14% of home sales revenue for the year (13.5% in Q3), a tax rate of 26–27%, net homebuilding debt/net capital of 31.9% and homebuilding debt‑to‑capital of 34.2%; liquidity was $802 million and stockholders’ equity $2.6 billion at quarter end. Capital allocation actions include maintaining a $0.32 quarterly dividend and repurchasing 353,000 shares for $20 million in Q2 (970,000 shares, $60 million YTD, >3% of shares, at an average 32–38% discount to book value); ARMs accounted for nearly 35% of originated mortgage volume in Q2.Century Communities Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.91B | 4.12B | 4.40B | 3.69B | 4.51B | 4.22B |
| Gross Profit | 668.55M | 882.14M | 962.76M | 802.97M | 1.14B | 1.05B |
| EBITDA | 162.98M | 219.24M | 464.35M | 423.35M | 716.08M | 669.63M |
| Net Income | 133.92M | 147.60M | 333.82M | 259.22M | 525.13M | 498.50M |
Balance Sheet | ||||||
| Total Assets | 4.69B | 4.49B | 4.53B | 4.17B | 3.79B | 3.51B |
| Cash, Cash Equivalents and Short-Term Investments | 92.33M | 158.01M | 150.00M | 328.00M | 353.29M | 368.61M |
| Total Debt | 1.70B | 1.44B | 1.48B | 1.30B | 1.23B | 1.35B |
| Total Liabilities | 2.13B | 1.89B | 1.91B | 1.78B | 1.64B | 1.74B |
| Stockholders Equity | 2.57B | 2.59B | 2.62B | 2.39B | 2.15B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 49.35M | 124.31M | 86.72M | -90.05M | 264.65M | -210.06M |
| Operating Cash Flow | 82.49M | 153.08M | 125.69M | 41.63M | 315.35M | -201.15M |
| Investing Cash Flow | -25.81M | 44.91M | -232.69M | -131.98M | -54.26M | -6.48M |
| Financing Cash Flow | -49.43M | -233.76M | 40.31M | 23.86M | -274.83M | 131.79M |
Century Communities Risk Analysis
Century Communities disclosed 83 risk factors in its most recent earnings report. Century Communities reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Century Communities Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.91B | 14.66 | 5.21% | 1.76% | -8.37% | -45.09% | |
70 Outperform | $3.74B | 12.04 | 9.97% | ― | -4.94% | -35.08% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $704.81M | 31.93 | 4.39% | ― | -4.73% | -87.32% | |
60 Neutral | $1.27B | 17.87 | 3.39% | ― | -22.62% | -60.74% | |
55 Neutral | $1.16B | 8.09 | 11.44% | ― | -12.20% | -54.76% |
* Real Estate Sector Average
CCS
Century Communities
67.16
8.92
15.31%
HOV
Hovnanian Enterprises
123.90
-9.69
-7.25%
MHO
M/I Homes
146.13
19.86
15.73%
LGIH
LGI Homes
54.57
-0.07
-0.13%
DFH
Dream Finders Homes
12.79
-12.74
-49.90%
Century Communities Corporate Events
Executive/Board ChangesShareholder Meetings
Century Communities Shareholders Back Leadership and Governance Slate
Positive
May 7, 2026
On May 6, 2026, Century Communities, Inc. held its Annual Meeting of Stockholders, with 94.7% of the 29,025,462 outstanding common shares represented, establishing a strong quorum. Shareholders elected seven board nominees, including co-CEOs Dale ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.