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Century Communities
(NYSE:CCS)
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Rating:62Neutral
Price Target:
$63.00
▼(-10.40% Downside)
Action:Reiterated
Date:07/23/26
CCS scores moderately due to weakened profitability and volatile cash generation (primary constraint), partially offset by a solid balance sheet and a constructive earnings call that included raised guidance and improved operating execution. Technical signals are mixed/neutral and valuation is reasonable, providing some support but not enough to outweigh the financial/cash-flow softness.
Positive Factors
Raised 2026 delivery and revenue guidance
Higher delivery and revenue guidance indicates management sees sufficient demand and execution capacity to expand near-term scale. If achieved, the larger volume base can improve operating leverage, support community investment, and reinforce Century Communities’ market position across its buyer segments.
Negative Factors
Profitability remains materially compressed
Thin current margins and much lower returns on equity indicate that the company is converting sales and invested capital into earnings less effectively than during its stronger prior period. Persistently lower profitability would reduce internal funding capacity and make results more sensitive to changes in pricing and costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised 2026 delivery and revenue guidance
Higher delivery and revenue guidance indicates management sees sufficient demand and execution capacity to expand near-term scale. If achieved, the larger volume base can improve operating leverage, support community investment, and reinforce Century Communities’ market position across its buyer segments.
Read all positive factors
Century Communities Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breakdown of revenue across business lines (for example, homebuilding, mortgage/finance, land sales), showing which parts of the company drive income and how diversified the business is. Shifts between segments can affect overall margins, cash flow timing and exposure to interest rates or land-market cycles.
Breakdown of revenue across business lines (for example, homebuilding, mortgage/finance, land sales), showing which parts of the company drive income and how diversified the business is. Shifts between segments can affect overall margins, cash flow timing and exposure to interest rates or land-market cycles.
Data provided by:
The Fly
The FlyCentury Communities (CCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.69B
Dividend Yield2.06%
Average Volume (3M)231.90K
Price to Earnings (P/E)13.2
Beta (1Y)0.64
Revenue Growth-8.37%
EPS Growth-45.09%
CountryUS
Employees1,660
SectorReal Estate
Sector Strength53
IndustryResidential Construction
Share Statistics
EPS (TTM)4.58
Shares Outstanding28,432,900
10 Day Avg. Volume258,809
30 Day Avg. Volume231,900
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)0.69
Price to Sales (P/S)0.43
P/FCF Ratio14.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.93
Revenue Forecast (FY)$3.72B
Century Communities Business Overview & Revenue Model
Company Description
Century Communities, Inc. is a residential housing company that designs, builds, markets, and sells single-family homes, encompassing both attached and detached structures. Beyond construction, the firm also handles land preparation and entitlemen...
How the Company Makes Money
Century Communities primarily makes money by selling newly built homes. Its core revenue stream is home sales revenue recognized at closing, which reflects the contracted selling price of the home (often including the underlying lot) to the end bu...
Century Communities Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial improvements: EPS growth (+11% YoY, +50% sequential), deliveries and orders that beat guidance, margin expansion (+30 bps adjusted gross margin), reduced direct construction costs (‑5% sequential), record community count (330) and a company record book value per share ($90.24). Management also raised full-year delivery and revenue guidance and executed share repurchases at substantial discounts to book value. Headwinds remain—primarily incentives (≈1,200 bps), SG&A pressure, macro uncertainty, potential vendor-driven land development cost increases, and elevated cancellation rates (13.2%). Increased ARM adoption (≈35%) helps affordability but creates longer-term rate-reset exposure. On balance, the positives around delivery/outperformance, margin improvement, cost control and capital allocation materially outweigh the challenges, though management continues to monitor incentives, input costs and rate-related demand risks.Positive Updates
Earnings Per Share Growth
GAAP net income of $36 million and diluted EPS of $1.26, an increase of 11% year-over-year and a 50% sequential increase.
Negative Updates
Incentives Remain a Material Margin Headwind
Incentives averaged ~1,200 basis points (12%) on delivered homes in Q2; while incentives declined ~50 basis points sequentially and ~100 basis points vs. Q4 2025, management noted incentives continue to be the most significant driver of homebuilding gross margin and remain a headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Per Share Growth
GAAP net income of $36 million and diluted EPS of $1.26, an increase of 11% year-over-year and a 50% sequential increase.
Read all positive updates
Company Guidance
Management raised the midpoint and low end of full‑year 2026 guidance, now expecting 9,750–10,500 home deliveries and $3.5–$3.8 billion of home sales revenue, with Q3 deliveries forecast at 2,500–2,700 homes; average community count is expected to rise low‑ to mid‑single‑digit percent year‑over‑year (Q2 average 321, ended at 330). They reiterated incentives on closed homes in Q3 should be consistent with H1 levels, expect finished lot costs for 2026 to be only 2–3% above Q4 2025, and plan $1.0–$1.2 billion of land acquisition and development spend (adjustable by market conditions). Financial targets include SG&A roughly 14% of home sales revenue for the year (13.5% in Q3), a tax rate of 26–27%, net homebuilding debt/net capital of 31.9% and homebuilding debt‑to‑capital of 34.2%; liquidity was $802 million and stockholders’ equity $2.6 billion at quarter end. Capital allocation actions include maintaining a $0.32 quarterly dividend and repurchasing 353,000 shares for $20 million in Q2 (970,000 shares, $60 million YTD, >3% of shares, at an average 32–38% discount to book value); ARMs accounted for nearly 35% of originated mortgage volume in Q2.Century Communities Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.91B | 4.12B | 4.40B | 3.69B | 4.51B | 4.22B |
| Gross Profit | 668.55M | 882.14M | 962.76M | 802.97M | 1.14B | 1.05B |
| EBITDA | 162.98M | 219.24M | 464.35M | 423.35M | 716.08M | 669.63M |
| Net Income | 133.92M | 147.60M | 333.82M | 259.22M | 525.13M | 498.50M |
Balance Sheet | ||||||
| Total Assets | 4.69B | 4.49B | 4.53B | 4.17B | 3.79B | 3.51B |
| Cash, Cash Equivalents and Short-Term Investments | 92.33M | 158.01M | 150.00M | 328.00M | 353.29M | 368.61M |
| Total Debt | 1.70B | 1.44B | 1.48B | 1.30B | 1.23B | 1.35B |
| Total Liabilities | 2.13B | 1.89B | 1.91B | 1.78B | 1.64B | 1.74B |
| Stockholders Equity | 2.57B | 2.59B | 2.62B | 2.39B | 2.15B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 49.35M | 124.31M | 86.72M | -90.05M | 264.65M | -210.06M |
| Operating Cash Flow | 82.49M | 153.08M | 125.69M | 41.63M | 315.35M | -201.15M |
| Investing Cash Flow | -25.81M | 44.91M | -232.69M | -131.98M | -54.26M | -6.48M |
| Financing Cash Flow | -49.43M | -233.76M | 40.31M | 23.86M | -274.83M | 131.79M |
Century Communities Technical Analysis
Negative
70.31
Price Trends
67.19
Negative
62.24
Negative
62.21
Negative
Market Momentum
-1.92
Positive
33.65
Neutral
9.03
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 70.31 is above the 20-day moving average (MA) of 66.66, above the 50-day MA of 67.19, and above the 200-day MA of 62.21, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 33.65 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.52B | 11.52 | 9.97% | ― | -4.94% | -35.08% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $1.69B | 13.22 | 5.21% | 2.06% | -8.37% | -45.09% | |
62 Neutral | $1.13B | 17.26 | 3.15% | ― | -16.52% | -57.00% | |
57 Neutral | $656.73M | 111.46 | 2.19% | ― | -10.16% | -95.27% | |
56 Neutral | $1.09B | 7.76 | 9.41% | ― | -12.20% | -54.76% |
* Real Estate Sector Average
CCS
Century Communities
60.54
-5.60
-8.47%
HOV
Hovnanian Enterprises
115.92
-35.94
-23.67%
MHO
M/I Homes
139.89
-14.21
-9.22%
LGIH
LGI Homes
49.42
-11.04
-18.26%
DFH
Dream Finders Homes
12.27
-16.84
-57.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.