Century Communities (CCS) AI Stock Analysis

• Market Cap: $1.59B
• Dividend Yield: 2.05%
• Average Volume (3M): 422.04K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.93
• Revenue Growth: 10.75%
• EPS Growth: 8.31%
• Country: US
• Employees: 1,873
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Residential Construction
• EPS (TTM): 1.36
• Shares Outstanding: 30,546,743
• 10 Day Avg. Volume: 371,728
• 30 Day Avg. Volume: 422,041
• PEG Ratio: -0.77
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.73
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: 1.69
• 1Y Price Target: $68.50
• Price Target Upside: 29.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ―

Century Communities shows strong valuation metrics with a low P/E ratio, indicating potential undervaluation. However, technical indicators highlight bearish trends, and financial performance is mixed with strong profitability but weak cash flow metrics. These factors, combined with a challenging market environment reflected in the earnings call, result in a moderate overall score.

Positive Factors

Profit and Margin Growth

CCS believes gross margins can remain in the low 20s from a historical high-teens level due to enhanced scale, and volumes could grow 30%+ without much additional fixed G&A.

Stock Buyback

CCS repurchased $31M in shares during 4Q, which was unexpected.

Negative Factors

Disappointing Outlook

The 2025 outlook is viewed as somewhat disappointing, and estimates are being lowered.

Century Communities Business Overview & Revenue Model

Company Description

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its home buyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 17 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.

How the Company Makes Money

Century Communities generates revenue primarily through the sale of homes across various U.S. markets. The company's key revenue streams include the sale of single-family homes, townhomes, and condominiums. Revenue is recognized when homes are delivered to buyers and title has transferred. Additionally, Century Communities may earn income through joint ventures and partnerships with other real estate developers or financial institutions, as well as through the sale of land and development rights. The company's earnings are influenced by factors such as housing market demand, economic conditions, interest rates, and government policies affecting the real estate sector.

Century Communities Financial Statement Overview

Summary

Century Communities exhibits strong profitability and a solid balance sheet, with a healthy net profit margin and moderate leverage. However, challenges in cash flow management, particularly with negative free cash flow due to significant capital expenditures, highlight areas for improvement.

Income Statement

Century Communities' TTM (Trailing-Twelve-Months) income statement shows a resilient performance despite a small decrease in total revenue compared to the previous year. The gross profit margin is strong at 21.8%, and the net profit margin is healthy at 7.1%. However, there is a slight decline in EBIT and EBITDA margins, indicating some pressure on operating efficiency. The revenue growth rate has turned negative, although the company managed to maintain decent profitability metrics.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.43, indicating moderate leverage. The return on equity (ROE) is strong at 12.0%, suggesting efficient use of equity to generate profits. However, the equity ratio is relatively high at 56.6%, highlighting a conservative capital structure with a substantial proportion of assets financed by equity rather than debt. The stability is commendable, though there is a need to monitor debt levels closely.

Cash Flow

Cash flow analysis reveals a challenging year for Century Communities, with negative free cash flow due to significant capital expenditures. The operating cash flow to net income ratio is low, suggesting limited cash conversion from earnings. Additionally, the free cash flow to net income ratio is negative, which could be concerning if it persists. However, historical positive cash flow metrics indicate potential for recovery.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.35B	4.40B	3.69B	4.51B	4.22B	3.16B
	Gross Profit
933.43M	962.76M	853.75M	1.14B	1.05B	616.33M
	EBIT
410.29M	446.28M	406.44M	703.83M	662.35M	263.65M
	EBITDA
435.53M	464.35M	371.43M	715.05M	673.26M	276.80M
	Net Income Common Stockholders
308.87M	333.82M	259.22M	525.13M	498.50M	206.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
207.62M	150.00M	226.15M	296.72M	316.31M	394.00M
	Total Assets
4.11B	4.53B	4.14B	3.77B	3.50B	2.85B
	Total Debt
1.28B	1.48B	1.30B	1.22B	1.33B	1.15B
	Net Debt
1.07B	1.33B	1.08B	920.31M	1.01B	759.92M
	Total Liabilities
1.69B	1.91B	1.75B	1.62B	1.73B	1.56B
	Stockholders Equity
2.42B	2.62B	2.39B	2.15B	1.76B	1.28B
Cash Flow		Free Cash Flow
-69.53M	86.72M	-90.05M	264.65M	-212.73M	332.06M
	Operating Cash Flow
27.57M	125.69M	41.63M	315.35M	-201.15M	340.58M
	Investing Cash Flow
-172.19M	-232.69M	-131.98M	-54.26M	-6.48M	-8.40M
	Financing Cash Flow
93.58M	40.31M	23.86M	-274.83M	131.79M	7.39M

Century Communities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCS, the sentiment is Negative. The current price of 53.02 is below the 20-day moving average (MA) of 54.44, below the 50-day MA of 60.20, and below the 200-day MA of 79.40, indicating a bearish trend. The MACD of -1.78 indicates Negative momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCS.

Century Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRBK	78 Outperform	$2.59B	7.12	24.29%	―	21.22%	24.90%
TPH	77 Outperform	$2.70B	6.64	13.28%	―	10.82%	19.34%
MHO	77 Outperform	$2.85B	5.62	19.02%	―	8.68%	8.39%
DFH	70 Outperform	$1.95B	6.49	26.25%	―	21.18%	11.40%
CCS	65 Neutral	$1.59B	5.38	12.36%	2.05%	10.75%	8.31%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
LGIH	58 Neutral	$1.21B	6.66	9.36%	―	-4.37%	-3.17%

Century Communities Corporate Events

Century Communities Holds Annual Stockholders Meeting

On May 7, 2025, Century Communities, Inc. held its Annual Meeting of Stockholders, where 92.9% of the company’s outstanding shares were represented. During the meeting, stockholders elected seven directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved the executive compensation of the company’s named executive officers.