Education
About Us
Working with TipRanks
Follow Us
Century Communities (CCS)
NYSE:CCS
Top Page
Century Communities
(NYSE:CCS)
65Neutral
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 (CCS) vs. S&P 500 (SPY)
Market Cap
$1.73B
Dividend Yield1.89%
Average Volume (3M)428.03K
Price to Earnings (P/E)5.8
Beta (1Y)0.92
Revenue Growth10.75%
EPS Growth8.31%
CountryUS
Employees1,873
SectorConsumer Cyclical
Sector Strength73
IndustryResidential Construction
Share Statistics
EPS (TTM)1.36
Shares Outstanding30,546,743
10 Day Avg. Volume340,533
30 Day Avg. Volume428,027
Financial Highlights & Ratios
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 Cap1.80
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit3.33
Enterprise Value/Ebitda1.69
Forecast
1Y Price Target
$68.50Price Target Upside21.28% Upside
Rating ConsensusHold
Number of Analyst Covering2
Century Communities Business Overview & Revenue Model
Company DescriptionCentury 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 MoneyCentury 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 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.75
Positive
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.70
Positive
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.60
Neutral
| 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
Neutral
56.48
Price Trends
61.84
Negative
67.64
Negative
80.48
Negative
Market Momentum
-1.67
Negative
46.61
Neutral
54.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCS, the sentiment is Neutral. The current price of 56.48 is above the 20-day moving average (MA) of 55.69, below the 50-day MA of 61.84, and below the 200-day MA of 80.48, indicating a neutral trend. The MACD of -1.67 indicates Negative momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CCS.
Century Communities Risk Analysis
Century Communities disclosed 83 risk factors in its most recent earnings report. Century Communities reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Century Communities Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.90B | 7.12 | 13.28% | ― | 10.82% | 19.34% | |
76 Outperform | $3.01B | 5.94 | 19.02% | ― | 8.68% | 8.39% | |
76 Outperform | $2.77B | 7.61 | 24.29% | ― | 21.22% | 24.90% | |
71 Outperform | $2.21B | 7.37 | 26.25% | ― | 21.18% | 11.40% | |
65 Neutral | $1.73B | 5.76 | 12.36% | 1.89% | 10.75% | 8.31% | |
61 Neutral | $6.98B | 11.33 | 2.82% | 3.90% | 2.65% | -21.74% | |
58 Neutral | $1.36B | 7.50 | 9.36% | ― | -4.37% | -3.17% |
* Consumer Cyclical Sector Average
Performance Comparison
CCS
Century Communities
56.48
-30.84
-35.32%
MHO
M/I Homes
112.40
-18.43
-14.09%
TPH
Tri Pointe
31.98
-7.76
-19.53%
LGIH
LGI Homes
58.19
-45.04
-43.63%
GRBK
Green Brick Partners
63.05
5.51
9.58%
DFH
Dream Finders Homes
23.63
-5.61
-19.19%
Century Communities Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -5.98%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
While Century Communities has managed to maintain stable gross margins and grow its community count, the company faces significant challenges such as lower absorption rates, decreased home sales revenue, and increased incentive levels due to economic uncertainties and interest rate volatility. These issues have led to a reduction in full-year guidance, indicating a challenging market environment.Q1-2025 Updates
Positive Updates
Stable Homebuilding Gross Margins
Century Communities maintained relatively stable homebuilding gross margins of 20.1%, excluding purchase price accounting, which eased by only 80 basis points sequentially.
Community Count Growth
The company ended the first quarter with a community count of 318, which is a 26% increase on a year-over-year basis. The community count is expected to increase in the mid-single-digit percentage range by year-end 2025.
Successful Cost Management
Century Communities managed to keep direct construction and finished lot costs roughly flat on a sequential basis, with a 4% decline in direct construction costs year-over-year.
Recognition for Trustworthiness
Century Communities was selected for the third year in a row to Newsweek's list of America's most trustworthy companies.
Negative Updates
Lower Absorption Rates and Consumer Confidence
The absorption rate in the first quarter was weaker than expected due to economic uncertainty, interest rate volatility, and eroding consumer confidence, leading to elongated sales cycles.
Decline in Home Sales Revenue
Home sales revenues for the first quarter were $884 million, down 4% compared to the prior year, impacted by lower deliveries and average sales price.
Increased Incentive Levels
Incentives on closed homes increased to approximately 900 basis points in the first quarter, up from about 800 basis points in the fourth quarter of 2024, impacting gross margins.
Reduced Full-Year Guidance
Due to ongoing economic uncertainty and declining consumer confidence, the full-year home delivery guidance was reduced to 10,400 to 11,000 homes, with anticipated home sales revenue of $4 to $4.2 billion.
Company Guidance
During Century Communities' first-quarter 2025 earnings call, the company provided guidance amidst challenging market conditions characterized by economic uncertainty, interest rate volatility, and eroding consumer confidence. Despite these headwinds, the company delivered 2,284 homes, only 3% below the previous year, with an average sales price decline of 1%. Net new contracts reached 2,692 homes, a 6% decrease from the prior year but a 33% increase over the first quarter of 2023, with an absorption pace averaging 2.8. Century Communities forecasted second-quarter deliveries of 2,300 to 2,500 homes and expected gross margins to ease due to increased incentives projected to rise by up to 200 basis points. The company maintained a community count of 318, up 26% year-over-year, with plans to grow deliveries by approximately 10% annually, leveraging its lot pipeline. Despite the challenges, the company was recognized on Newsweek's list of America's most trustworthy companies, reflecting its commitment to delivering quality homes.Century Communities Corporate Events
Executive/Board ChangesShareholder Meetings
Century Communities Holds Annual Stockholders Meeting
Neutral
May 8, 2025
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.
Spark’s Take on CCS Stock
According to Spark, TipRanks’ AI Analyst, CCS is a Neutral.
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.
To see Spark’s full report on CCS stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.