Century Communities, Inc. (CCS) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on CCS

Century Communities, Inc.'s recent performance was positively driven by its Q4 2025 earnings beat, with quarterly earnings of $1.59 per share, surpassing the Zacks Consensus Estimate of $1.39 per share. The company's residential units delivered and new home deliveries also showed strength, with 3,435 and 3,030 units, respectively. Additionally, the company's Board of Directors declared a 10% increase in quarterly cash dividend to $0.32 per share, demonstrating its commitment to shareholder value. The company also reported a record book value per share of $89.21.

1.c. Company Highlights

Last Price	74.84
Change Percentage	3.51%
Open	74.5
Previous Close	72.3
Market Cap ( Millions)	2199
Volume	314041
Year High	76
Year Low	50.42
M A 50	64.38
M A 200	61.0

FCF Yield	6.76%
Dividend Yield	1.55%
ROE	5.73%
Debt / Equity	55.68%
Net Debt / EBIDTA	565.28%
Price To Book	0.84
Price Earnings Ratio	14.8
Price To FCF	14.79
Price To sales	0.54
EV / EBITDA	15.33

2. Century Communities' Q4 Earnings Exceed Expectations

Century Communities reported a strong fourth quarter, with home sales revenues reaching $1.1 billion and deliveries of 3,030 new homes, a 22% sequential increase. The company's pretax income was $47 million, and net income was $36 million. Earnings per share (EPS) came in at $1.59, beating estimates of $1.39. The company's gross margin was impacted by increased incentives on closing homes, but direct construction costs declined by 4% on a sequential basis. As Scott Dixon, Chief Financial Officer, noted, the company's focus on close-up communities and moving units should help improve margins in 2026.

Publication Date: Feb -16

                                    📋 Highlights
                                    Exceeded Guidance:
                                                Delivered 3,435 residential units (3,030 new homes, 105 rentals, 300 multifamily) and repurchased 7% of shares, with $1.2B invested in land acquisition/development.
Record Contracts:
                                                Q4 net new contracts hit 2,702 homes, driven by improved absorption rates, while direct construction costs fell 4% sequentially and cycle times averaged 114 days.
Strong Q4 Financials:
                                                Generated $1.1B in home sales revenue (up 22% sequentially), $47M pretax income, and $36M net income, with 2026 guidance for 10,011–11,025 deliveries and $3.6B–$4.1B revenue.
Scalable Land Position:
                                                Controls 61,000 owned/controlled lots, enabling 10% annual delivery growth in 2026–2027, with flat sequential lot costs and low-risk land option strategies.

                                

Operational Highlights

The company delivered 3,435 residential units in 2025, comprising 3,030 new homes, 105 previously leased rental homes, and 300 multifamily units. Century Communities repurchased over 7% of its shares outstanding and invested $1.2 billion in land acquisition and development. The company's land position has an attractive cost basis, with 61,000 owned and controlled lots, providing visibility into future growth.

Guidance and Outlook

Century Communities expects its deliveries to range from 2,100 to 2,300 homes in 2026, representing the low point for the year. The company anticipates a stronger spring selling season, driven by increased publicity and PR on the housing market. For 2026, the company expects new home deliveries to be in the range of 10,011 homes and home sales revenues to be in the range of $3.6 billion to $4.1 billion. Analysts estimate next year's revenue growth at 10.8%.

Valuation

Century Communities' current valuation metrics indicate a Price-to-Earnings (P/E) Ratio of 14.8, a Price-to-Book (P/B) Ratio of 0.84, and a Price-to-Sales (P/S) Ratio of 0.54. The company's Return on Equity (ROE) is 5.73%, and its Return on Invested Capital (ROIC) is 4.15%. These metrics suggest that the company's stock may be reasonably valued, with a moderate growth outlook priced in.

3. NewsRoom

Century Communities Announces Luxury Townhomes in St. Augustine, FL

Feb -05

Source: prnewswire.com

Century Communities Increases Quarterly Cash Dividend

Feb -04

Source: prnewswire.com

Century Complete Releases Limited Homesites at New Winston-Salem Community

Feb -03

Source: prnewswire.com

Exxon Mobil Corp (XOM) Q4 2025 Earnings Call Highlights: Record Production and Strategic Advancements

Jan -30

Source: gurufocus.com

Century Communities, Inc. (CCS) Q4 2025 Earnings Call Transcript

Jan -29

Source: seekingalpha.com

Century Communities (CCS) Q4 Earnings and Revenues Surpass Estimates

Jan -28

Source: zacks.com

Century Communities Reports Fourth Quarter and Full Year 2025 Results

Jan -28

Source: prnewswire.com

Exxon begins commercial CCS project with CF industries in Louisiana

Jan -26

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.45%)

6. Segments

Home

Expected Growth: 10.5%

Growing demand for new homes, innovative designs, quality construction, and exceptional customer service drive Century Communities' growth. Increasing housing market recovery, low interest rates, and government incentives for first-time homebuyers also contribute to the segment's growth.

Financial Services

Expected Growth: 8.5%

Growing demand for one-stop-shop home financing solutions, increasing homeownership rates, and expanding mortgage lending market drive Century Communities' financial services growth.

Land Sales and Other

Expected Growth: 5.2%

The Land Sales and Other segment of Century Communities, Inc. is expected to grow driven by increasing demand for land development, strategic partnerships, and expansion into new markets.

7. Detailed Products

Single-Family Homes

Century Communities, Inc. builds and sells single-family homes in various locations, offering a range of floor plans and amenities to suit different lifestyles and budgets.

Townhomes

The company offers townhomes in various locations, providing a more affordable and low-maintenance alternative to single-family homes.

Condominiums

Century Communities, Inc. develops and sells condominiums in urban and suburban areas, offering a range of amenities and services.

Master-Planned Communities

The company develops master-planned communities that offer a range of amenities, services, and recreational activities.

Land Development

Century Communities, Inc. acquires, develops, and sells land to other builders, investors, and developers.

8. Century Communities, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Century Communities, Inc. faces moderate threat from substitutes due to the availability of alternative housing options, such as apartments and rental properties.

Bargaining Power Of Customers

Century Communities, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Century Communities, Inc. relies on various suppliers for materials and labor, but the company's scale and negotiating power mitigate the bargaining power of suppliers.

Threat Of New Entrants

The homebuilding industry has high barriers to entry, including regulatory hurdles and significant capital requirements, making it difficult for new entrants to compete with established players like Century Communities, Inc.

Intensity Of Rivalry

The homebuilding industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry among companies like Century Communities, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.61%
Debt Cost	3.95%
Equity Weight	60.39%
Equity Cost	12.73%
WACC	9.25%
Leverage	65.60%

11. Quality Control: Century Communities, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Green Brick Partners

A-Score: 5.5/10

Value: 6.8

Growth: 8.3

Quality: 7.9

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

1-Year Total Return ->

M/I Homes

A-Score: 5.4/10

Value: 8.0

Growth: 8.2

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

Meritage Homes

A-Score: 5.4/10

Value: 8.6

Growth: 5.3

Quality: 6.5

Yield: 4.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Tri Pointe Homes

A-Score: 5.2/10

Value: 8.0

Growth: 8.2

Quality: 6.0

Yield: 0.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

Taylor Morrison

A-Score: 5.1/10

Value: 8.0

Growth: 5.7

Quality: 6.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

Century Communities

A-Score: 5.1/10

Value: 8.0

Growth: 7.6

Quality: 4.7

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

6.76%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.25%

Century Communities, Inc. - US1565043007

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CCS

1.c. Company Highlights

Fairly Valued

Average Quality

Stable Momentum

Earnings Beats

Revenues Beats

Average Growth

Higher Growth

Strong Momentum

Revenues Miss

Cheaper

Medium Volatility

Earnings Miss

Weak Momentum

2. Century Communities' Q4 Earnings Exceed Expectations

Operational Highlights

Guidance and Outlook

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.45%)

6. Segments

Home

Expected Growth: 10.5%

Financial Services

Expected Growth: 8.5%

Land Sales and Other

Expected Growth: 5.2%

7. Detailed Products

Single-Family Homes

Townhomes

Condominiums

Master-Planned Communities

Land Development

8. Century Communities, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Century Communities, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

74.84$

Current Price

74.84$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA