Century Communities (CCS) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: 1.62%
• Average Volume (3M): 327.35K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.87
• 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: 308,803
• 30 Day Avg. Volume: 327,350
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 8.08
• 1Y Price Target: $65.00
• Price Target Upside: -6.69% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $73.00 ▲(4.79% Upside)

Century Communities' stock score reflects a mix of solid profitability and undervaluation, tempered by challenges in revenue growth and cash flow. Positive technical indicators and strategic financial moves support the score, while earnings call insights highlight both growth initiatives and market challenges.

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 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 demonstrates solid financial performance with strong profitability and a robust balance sheet. However, challenges in cash flow, including negative free cash flow due to high capital expenditures, indicate 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.40B	3.69B	4.51B	4.22B	3.16B
Gross Profit	962.76M	802.97M	1.14B	1.05B	616.33M
EBITDA	464.35M	371.43M	716.08M	669.63M	285.59M
Net Income	333.82M	259.22M	525.13M	498.50M	206.16M
Balance Sheet
Total Assets	4.53B	4.14B	3.77B	3.50B	2.85B
Cash, Cash Equivalents and Short-Term Investments	150.00M	226.15M	296.72M	316.31M	394.00M
Total Debt	1.48B	1.30B	1.22B	1.35B	1.15B
Total Liabilities	1.91B	1.75B	1.62B	1.73B	1.56B
Stockholders Equity	2.62B	2.39B	2.15B	1.76B	1.28B
Cash Flow
Free Cash Flow	86.72M	-90.05M	264.65M	-212.73M	332.06M
Operating Cash Flow	125.69M	41.63M	315.35M	-201.15M	340.58M
Investing Cash Flow	-232.69M	-131.98M	-54.26M	-6.48M	-8.40M
Financing Cash Flow	40.31M	23.86M	-274.83M	131.79M	7.39M

Century Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCS, the sentiment is Positive. The current price of 69.66 is above the 20-day moving average (MA) of 64.92, above the 50-day MA of 61.48, and above the 200-day MA of 65.99, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 66.14 is Neutral, neither overbought nor oversold. The STOCH value of 75.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$4.06B	8.61	17.56%	―	7.39%	-1.37%
TPH	79 Outperform	$3.18B	9.46	11.38%	―	-3.59%	-10.82%
GRBK	77 Outperform	$3.14B	9.38	22.12%	―	13.87%	6.54%
DFH	74 Outperform	$2.67B	9.72	23.25%	―	20.18%	-1.04%
CCS	73 Outperform	$2.03B	8.34	10.34%	1.62%	3.76%	-17.55%
LGIH	68 Neutral	$1.51B	10.11	7.84%	―	-7.89%	-19.53%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%

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.