Century Communities (CCS) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: 1.79%
• Average Volume (3M): 352.55K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.83
• Revenue Growth: 3.76%
• EPS Growth: -17.55%
• Country: US
• Employees: 1,873
• Sector: Real Estate
• Sector Strength: 53
• Industry: Residential Construction
• EPS (TTM): 1.37
• Shares Outstanding: 29,679,781
• 10 Day Avg. Volume: 479,145
• 30 Day Avg. Volume: 352,545
• PEG Ratio: 0.23
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 26.65
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 8.08
• 1Y Price Target: $59.50
• Price Target Upside: -5.63% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $70.00 ▲(11.02% Upside)

Century Communities' overall stock score reflects a mix of solid valuation and strategic growth initiatives, tempered by financial performance challenges and market headwinds. The company's undervaluation and dividend yield are significant positives, while declining revenue and cash flow pressures, along with market challenges, weigh on the score.

Positive Factors

Community Expansion

The record community count indicates strategic expansion and increased market presence, which can drive long-term revenue growth and strengthen market position.

Home Deliveries Growth

The increase in home deliveries demonstrates effective sales strategies and operational efficiency, contributing to sustained revenue growth and market competitiveness.

Share Repurchase Program

The significant share repurchase indicates management's confidence in the company's value and can enhance shareholder returns, reflecting a strong financial position.

Negative Factors

Elevated Mortgage Rates

High mortgage rates can constrain affordability and dampen demand for new homes, posing a challenge to revenue growth and market expansion efforts.

Increased Incentives Affecting Margins

Rising incentives to drive sales can erode profit margins, affecting overall profitability and financial health in the long term.

Inventory Impairment Charges

Inventory impairments indicate challenges in specific markets, potentially leading to financial losses and impacting future earnings stability.

Century Communities Business Overview & Revenue Model

Company Description

Century Communities, Inc. (CCS) is a leading national homebuilder that specializes in the development of single-family homes, townhomes, and condominiums across various markets in the United States. The company operates primarily in the residential construction sector, focusing on providing quality homes that cater to a diverse range of buyers, including first-time, move-up, and active adult segments. In addition to homebuilding, Century Communities is involved in land development and offers various related services, enhancing its position within the housing market.

How the Company Makes Money

Century Communities generates revenue primarily through the sale of residential properties, which includes both new home sales and the development of land for future residential projects. The company profits by acquiring land, developing it into communities, and then selling homes at a markup. Key revenue streams include home sales, which are influenced by market demand and the company's ability to manage construction costs effectively. Additionally, Century Communities may engage in joint ventures or partnerships with landowners and other developers, which can provide access to prime locations and shared resources, further enhancing its earnings potential. The company also benefits from economies of scale as it operates in multiple states, allowing for cost efficiencies and broader market reach.

Century Communities Financial Statement Overview

Summary

Century Communities shows solid profitability with a gross profit margin of 20.89% and a net profit margin of 6.02%. However, declining revenue and margins, along with cash flow challenges, indicate areas for improvement. The balance sheet is stable with a conservative debt-to-equity ratio of 0.44, but declining ROE and cash flow generation are concerns.

Income Statement

Century Communities shows a mixed performance in its income statement metrics. The TTM gross profit margin stands at 20.89%, indicating solid profitability, although it has decreased compared to the previous year. The net profit margin for the TTM is 6.02%, which is healthy for the industry, but it reflects a decline from the previous annual period. Revenue growth is a concern with a decline of 1.91% from the previous year to the TTM. The EBIT and EBITDA margins are 8.69% and 9.15% respectively, showing operational efficiency but also a decline. Overall, while profitability remains reasonable, the declining revenue and margins are areas to watch.

Balance Sheet

The balance sheet of Century Communities reflects a stable yet cautious financial position. The debt-to-equity ratio for the TTM is 0.44, indicating a conservative approach to leverage. The return on equity (ROE) is 10.14%, which is reasonable, though it has declined compared to previous annual periods. The equity ratio is 55.97%, suggesting a strong equity base relative to total assets. Despite a strong equity position, the decline in ROE and increased debt levels over time suggest potential financial pressure.

Cash Flow

The cash flow metrics show some challenges and improvements for Century Communities. The free cash flow growth rate has declined significantly in the TTM, with free cash flow dropping to $47.02 million from $86.73 million the previous year. The operating cash flow to net income ratio is 0.60, indicating adequate conversion of income to cash but with room for improvement. The free cash flow to net income ratio is 0.18, showing limited free cash flow generation compared to net income. While operational cash flow is positive, the overall cash flow position suggests cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.31B	4.40B	3.69B	4.51B	4.22B	3.16B
Gross Profit	901.10M	962.76M	802.97M	1.14B	1.05B	616.33M
EBITDA	394.64M	464.35M	371.43M	716.08M	669.63M	285.59M
Net Income	260.00M	333.82M	259.22M	525.13M	498.50M	206.16M
Balance Sheet
Total Assets	4.58B	4.53B	4.14B	3.77B	3.50B	2.85B
Cash, Cash Equivalents and Short-Term Investments	93.25M	150.00M	226.15M	296.72M	316.31M	394.00M
Total Debt	1.14B	1.48B	1.30B	1.22B	1.35B	1.15B
Total Liabilities	2.02B	1.91B	1.75B	1.62B	1.73B	1.56B
Stockholders Equity	2.56B	2.62B	2.39B	2.15B	1.76B	1.28B
Cash Flow
Free Cash Flow	47.02M	86.72M	-90.05M	264.65M	-212.73M	332.06M
Operating Cash Flow	156.53M	125.69M	41.63M	315.35M	-201.15M	340.58M
Investing Cash Flow	-115.43M	-232.69M	-131.98M	-54.26M	-6.48M	-8.40M
Financing Cash Flow	-43.19M	40.31M	23.86M	-274.83M	131.79M	7.39M

Century Communities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 63.05 is below the 20-day moving average (MA) of 66.28, below the 50-day MA of 63.63, and below the 200-day MA of 64.41, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 6.93 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
MHO	80 Outperform	$3.85B	8.00	16.59%	―	7.39%	-1.37%
TPH	75 Outperform	$2.95B	8.59	13.73%	―	-3.59%	-10.82%
CCS	69 Neutral	$1.87B	7.69	10.34%	1.79%	3.76%	-17.55%
HOV	68 Neutral	$731.65M	6.35	19.02%	―	7.97%	-35.64%
LGIH	68 Neutral	$1.20B	7.84	7.58%	―	-7.89%	-19.53%
DFH	64 Neutral	$2.43B	8.86	21.00%	―	20.18%	-1.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Century Communities Corporate Events

Century Communities Announces $500M Senior Notes Offering

On September 3, 2025, Century Communities announced the pricing of a private offering of $500 million in 6.625% Senior Notes due 2033. The offering is expected to close on September 17, 2025, with net proceeds of approximately $494 million intended to finance the redemption of the company’s existing 6.750% Senior Notes due 2027. This strategic financial move aims to optimize the company’s debt structure and potentially improve its market position.

Century Communities Launches $500M Senior Notes Offering

On September 3, 2025, Century Communities announced the launch of a private offering of $500 million in Senior Notes due 2033, aimed at qualified institutional buyers and certain non-U.S. persons. Concurrently, the company issued a conditional notice for the redemption of its 6.750% Senior Notes due 2027, contingent upon the successful completion of the new offering. The proceeds from the new notes, along with cash on hand, will be used to finance the redemption of the 2027 notes. This strategic financial maneuver is expected to impact the company’s debt structure and market positioning.