Century Communities (CCS) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 1.83%
• Average Volume (3M): 375.71K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.90
• Revenue Growth: 3.76%
• EPS Growth: -17.55%
• Country: US
• Employees: 1,873
• Sector: Real Estate
• Sector Strength: 56
• Industry: Residential Construction
• EPS (TTM): 1.37
• Shares Outstanding: 29,679,781
• 10 Day Avg. Volume: 347,096
• 30 Day Avg. Volume: 375,708
• 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: 1.79
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 8.08
• 1Y Price Target: $63.25
• Price Target Upside: 5.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $66.00 ▲(9.96% Upside)

Century Communities' stock score reflects strong valuation and positive earnings call outcomes, balanced against mixed financial performance and technical indicators. The low P/E ratio and dividend yield highlight potential undervaluation, while operational successes in the earnings call showcase resilience amidst market challenges. However, financial and cash flow challenges suggest caution.

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. (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 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: 60.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 60.02 is above the 20-day moving average (MA) of 59.90, above the 50-day MA of 57.58, and below the 200-day MA of 68.22, indicating a neutral trend. The MACD of 0.77 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 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
TPH	79 Outperform	$2.87B	8.36	11.38%	―	-3.59%	-10.82%
MHO	78 Outperform	$3.42B	7.11	17.56%	―	7.39%	-1.37%
GRBK	78 Outperform	$2.92B	8.58	22.12%	―	13.87%	6.54%
DFH	74 Outperform	$2.41B	8.80	23.25%	―	20.18%	-1.04%
CCS	73 Outperform	$1.78B	7.32	10.34%	1.83%	3.76%	-17.55%
LGIH	68 Neutral	$1.42B	9.27	7.84%	―	-7.89%	-19.53%
Sector *	53 Neutral	$1.23B	2.73	-2.60%	5.78%	-2.15%	-149.23%

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.