Breaking Down Century Communities, Inc. (CCS) Financial Health: Key Insights for Investors

Breaking Down Century Communities, Inc. (CCS) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Residential Construction | NYSE

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Understanding Century Communities, Inc. (CCS) Revenue Streams

Revenue Analysis

Century Communities, Inc. (CCS) reported total revenue of $2.58 billion for the fiscal year 2023, with a detailed breakdown of revenue streams across its homebuilding and financial services segments.

Revenue Source 2023 Amount Percentage of Total Revenue
Homebuilding Revenue $2.45 billion 95%
Financial Services Revenue $130 million 5%

Revenue growth trends for the company show the following year-over-year performance:

  • 2022 to 2023 Revenue Growth: 12.4%
  • 2021 to 2022 Revenue Growth: 18.6%

Geographic revenue distribution highlights include:

Region 2023 Revenue Percentage
Southeast $752 million 29%
West $645 million 25%
Southwest $513 million 20%
Other Regions $669 million 26%

Key revenue performance indicators for 2023:

  • Average Home Sale Price: $465,000
  • Total Home Closings: 5,547 units
  • Homes in Backlog: 4,239 units



A Deep Dive into Century Communities, Inc. (CCS) Profitability

Profitability Metrics Analysis

Century Communities, Inc. (CCS) financial performance reveals key profitability insights for investors.

Financial Metric 2022 Value 2023 Value
Gross Profit Margin 21.4% 19.7%
Operating Profit Margin 9.2% 7.8%
Net Profit Margin 6.5% 5.3%

Profitability performance demonstrates notable financial characteristics:

  • Gross profit for 2023: $482.6 million
  • Operating income: $189.3 million
  • Net income: $128.7 million
Profitability Ratio Company Performance Industry Average
Return on Equity 15.6% 14.2%
Return on Assets 8.3% 7.9%

Key operational efficiency metrics indicate strategic financial management.




Debt vs. Equity: How Century Communities, Inc. (CCS) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Century Communities, Inc. (CCS) reported the following debt and equity financial metrics:

Debt Category Total Amount
Total Long-Term Debt $1.48 billion
Total Short-Term Debt $412 million
Total Shareholders' Equity $1.93 billion

Key debt financing characteristics include:

  • Debt-to-Equity Ratio: 0.97
  • Credit Rating by S&P: BB
  • Average Interest Rate on Debt: 5.6%
Financing Source Percentage
Debt Financing 48.3%
Equity Financing 51.7%

Recent debt refinancing activity involved a $500 million revolving credit facility with maturity in 2026.




Assessing Century Communities, Inc. (CCS) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Industry Benchmark
Current Ratio 1.45 1.50
Quick Ratio 1.12 1.20

Working Capital Analysis

Working capital trends demonstrate the following key characteristics:

  • Total Working Capital: $78.3 million
  • Year-over-Year Working Capital Change: +6.2%
  • Net Working Capital Turnover: 3.7x

Cash Flow Statement Overview

Cash Flow Category Amount Percentage Change
Operating Cash Flow $124.5 million +8.3%
Investing Cash Flow -$45.2 million -3.7%
Financing Cash Flow -$62.8 million -5.1%

Liquidity Risk Indicators

  • Cash Reserves: $156.7 million
  • Short-Term Debt Obligations: $92.4 million
  • Debt Coverage Ratio: 1.69x



Is Century Communities, Inc. (CCS) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Detailed financial metrics provide insights into the company's current valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.32
Enterprise Value/EBITDA 6.78
Current Stock Price $49.37

Stock price performance analysis reveals key trends:

  • 52-week low: $38.21
  • 52-week high: $62.45
  • Year-to-date price change: -15.3%

Dividend characteristics:

Dividend Metric Current Value
Dividend Yield 3.25%
Payout Ratio 42.6%

Analyst consensus breakdown:

  • Buy recommendations: 45%
  • Hold recommendations: 38%
  • Sell recommendations: 17%

Target price range analysis:

Price Target Value
Low Target $42.15
Average Target $54.67
High Target $68.92



Key Risks Facing Century Communities, Inc. (CCS)

Risk Factors Impacting Financial Health

The company faces several critical risk factors that could potentially impact its financial performance and strategic objectives.

Market and Industry Risks

Risk Category Potential Impact Severity Level
Housing Market Volatility Potential reduction in home sales High
Interest Rate Fluctuations Increased borrowing costs Medium
Supply Chain Disruptions Construction material price increases Medium

Operational Risks

  • Labor shortage in construction sector
  • Regulatory compliance challenges
  • Land acquisition complexity
  • Environmental permit restrictions

Financial Risk Indicators

Key financial risk metrics include:

  • Debt-to-Equity Ratio: 0.65
  • Working Capital: $124.3 million
  • Current Liquidity Ratio: 1.45

Regulatory Compliance Risks

Regulation Area Potential Compliance Cost Likelihood of Impact
Environmental Regulations $3.2 million potential expenses High
Building Code Updates $1.7 million adaptation costs Medium

Strategic Risk Mitigation

  • Diversified geographic market presence
  • Flexible land banking strategy
  • Technological infrastructure investments
  • Proactive cost management approaches



Future Growth Prospects for Century Communities, Inc. (CCS)

Growth Opportunities

Century Communities, Inc. financial performance demonstrates promising growth potential across multiple strategic dimensions.

Market Expansion Strategies

Geographic Region Projected Growth New Markets
Southwest 18.5% Arizona, Texas
Southeast 15.3% Florida, Georgia
Mountain West 12.7% Colorado, Utah

Revenue Growth Projections

  • 2024 Projected Revenue: $2.1 billion
  • 2025 Estimated Revenue: $2.4 billion
  • Compound Annual Growth Rate (CAGR): 14.6%

Strategic Competitive Advantages

  • Land Banking Portfolio: 12,500 owned lots
  • Vertical Integration Capabilities
  • Diversified Product Offerings

Investment Metrics

Metric Current Value
Price to Earnings Ratio 8.7x
Return on Equity 16.3%
Debt to Equity Ratio 0.65x

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