Century Communities (CCS) AI Stock Analysis

• Market Cap: $2.12B
• Dividend Yield: 1.54%
• Average Volume (3M): 492.51K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.58
• Revenue Growth: 18.17%
• EPS Growth: 30.51%
• Country: US
• Employees: 1,873
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Residential Construction
• EPS (TTM): 10.40
• Shares Outstanding: 30,651,554
• 10 Day Avg. Volume: 682,437
• 30 Day Avg. Volume: 492,513
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.49
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 1.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $88.50
• Price Target Upside: 28.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Century Communities has strong financial performance, with robust income and balance sheet metrics, albeit with room for improvement in cash flow conversion. The technical indicators suggest caution due to bearish momentum. The stock's undervaluation presents an attractive opportunity, supported by promising future growth outlined in the earnings call. However, challenges such as mortgage rate volatility need careful monitoring.

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 primarily generates revenue through the sale of homes. The company acquires land, develops residential communities, and then constructs homes to sell to consumers. Revenue is recognized at the point of closing, which is when title and possession are transferred to the buyer. In addition to home sales, Century Communities may also earn money from land sales and mortgage services. The company operates under two main brands: Century Communities and Century Complete, which focus on different segments of the housing market, allowing them to target a broader customer base. Additionally, strategic partnerships with suppliers and efficient supply chain management contribute to cost optimization, enhancing profitability.

Century Communities Financial Statement Overview

Summary

Century Communities showcases a strong income statement with healthy profit margins, indicative of effective cost management and profitability. The balance sheet demonstrates a stable financial structure with moderate leverage and a solid equity base. Cash flow generation has improved, although there is room for further enhancement. Overall, the company is financially sound with a positive trajectory, yet it should focus on enhancing cash flow efficiency.

Income Statement

Century Communities has shown substantial revenue growth over the years, with a recent increase from $3.69 billion to $4.39 billion. The gross profit margin is healthy at approximately 23.4%, and the net profit margin is a solid 7.6%. However, there has been a decline in revenue from 2022 to 2023. The company maintains strong EBIT and EBITDA margins, reflecting efficient cost management.

Balance Sheet

The balance sheet of Century Communities reveals a stable financial position with a debt-to-equity ratio of 0.42, indicating moderate leverage. The equity ratio stands at 57.8%, which is a positive sign of financial health. However, the return on equity is at 12.7%, which, while respectable, suggests room for improvement in generating higher returns on shareholder equity.

Cash Flow

The cash flow statement indicates positive operating cash flow of $125.7 million and an improvement in free cash flow from the previous negative figure to $86.7 million. The operating cash flow to net income ratio is 0.38, reflecting some challenges in converting income into cash. Positive free cash flow growth is a good sign, but the overall cash flow performance could be stronger.

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
1.03B	853.75M	1.14B	1.05B	616.33M
	EBIT
512.67M	406.44M	703.83M	662.35M	263.65M
	EBITDA
470.56M	371.43M	715.05M	673.26M	276.80M
	Net Income Common Stockholders
333.82M	259.22M	525.13M	498.50M	206.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
150.00M	226.15M	296.72M	316.31M	394.00M
	Total Assets
4.53B	4.14B	3.77B	3.50B	2.85B
	Total Debt
1.11B	1.30B	1.22B	1.33B	1.15B
	Net Debt
957.91M	1.08B	920.31M	1.01B	759.92M
	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: Negative
• Last Price: 69.12
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 69.12 is below the 20-day moving average (MA) of 69.61, below the 50-day MA of 72.52, and below the 200-day MA of 85.31, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.20 is Neutral, 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
DHI	78 Outperform	$40.99B	9.14	19.35%	1.08%	2.12%	1.63%
PHM	74 Outperform	$21.32B	7.17	27.40%	0.78%	11.74%	25.66%
CCS	73 Outperform	$2.12B	6.69	13.33%	1.54%	18.17%	30.51%
TOL	69 Neutral	$10.82B	7.52	20.38%	0.84%	5.86%	12.20%
LEN	68 Neutral	$31.00B	8.58	14.99%	1.70%	2.06%	-3.67%
KBH	66 Neutral	$4.18B	7.15	15.60%	1.69%	5.54%	11.25%
Sector *	59 Neutral	$12.60B	11.17	0.97%	3.72%	1.34%	-21.34%

Century Communities Corporate Events

Century Communities Restructures Leadership with New CEO

Century Communities, Inc. has restructured its leadership team with Dale Francescon taking over as Executive Chair and Robert J. Francescon assuming the roles of Chief Executive Officer and President, effective January 1, 2025. This change eliminates the Co-Chief Executive Officer structure, and introduces the option for executives to serve as strategic advisors in a part-time capacity instead of retiring, reflecting a shift in company leadership dynamics.