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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.

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1.b. Last Insights on CCS

Breaking News: Century Communities Inc CCS is in focus despite a challenging market backdrop. The company is driven by better operating leverage and marketing strategies. Recently, Century Complete, a brand of CCS, announced new homes for sale near Ann Arbor, MI, starting from the mid $300s at The Timbers community. This new offering aims to provide quality and affordable homes. Analysts from various firms have given mixed recommendations, with some as a hold. CCS faces risks from higher mortgage rates and land/labor costs.

1.c. Company Highlights

2. Century Communities' Q3 2025 Earnings: A Strong Performance Amidst Challenges

Century Communities delivered a robust performance in Q3 2025, with adjusted net income coming in at $46 million, or $1.52 per diluted share, significantly beating estimates of $0.86 per diluted share. The company's homebuilding gross margin stood at 20.1%, and pretax income was $48 million. Net new contracts declined by 6% sequentially but remained above the historical average. The company's efforts to control costs are evident, with direct construction costs decreasing by 3% year-to-date.

Publication Date: Oct -23

📋 Highlights
  • Home Deliveries & Margin:: Delivered 2,486 homes with 20.1% adjusted homebuilding gross margin in Q3 2025.
  • Cost & Cycle Time Efficiency:: Direct construction costs fell 3% YoY, while cycle times improved to 115 calendar days.
  • Financial Performance:: Pretax income reached $48M, net income $37M ($1.25/share), and adjusted EBITDA totaled $70M.
  • Community Growth:: Ended the quarter with 321 communities, a 5% YoY increase, and started 2,440 homes.
  • Guidance & Incentives:: 2025 home deliveries projected at 10,000–10,250 units, with Q4 incentive rates rising 100 bps.

Operational Highlights

The company started 2,440 homes and ended the quarter with 321 communities, a 5% year-over-year increase. Cycle times improved to 115 calendar days, indicating efficient operational management. The company repurchased $20 million of shares and maintained a quarterly cash dividend of $0.29 per share, reflecting its commitment to returning value to shareholders.

Guidance and Outlook

Century Communities narrowed its guidance for 2025, expecting home deliveries between 10,000 to 10,250 homes and home sales revenues between $3.8 billion to $3.9 billion. The company anticipates an increase in its year-end community count in the mid-single-digit percentage range. As Rob Francescon noted, the entry-level consumer has been hit hard, and there's uncertainty, but they expect things to settle down, planning for more incentives in Q4.

Valuation and Growth Prospects

With a P/E Ratio of 7.09 and an expected revenue growth rate of 10.7% next year, the company's valuation appears reasonable. The Dividend Yield stands at 1.86%, providing a relatively stable return to investors. The ROE of 10.09% indicates a decent return on equity. Analysts should continue to monitor the company's ability to manage its costs, maintain its community count growth, and navigate the challenging consumer environment.

Cost Management and SG&A

The company's SG&A expenses saw an upside, but as Scott Dixon explained, cost control activities, back-office efficiencies, and headcount management drove the decrease. The company aims to keep SG&A at around 12.5% in Q4, indicating a focus on maintaining operational efficiency.

3. NewsRoom

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3 Homebuilders in Focus Despite Challenging Market Backdrop

Dec -04

Source: zacks.com

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Century Complete Announces New Homes Now Selling near Ann Arbor, MI

Dec -04

Source: prnewswire.com

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Century Complete Announces New Community Coming Soon Near Winston-Salem

Dec -03

Source: prnewswire.com

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Century Communities Announces December Grand Opening in Sacramento

Dec -02

Source: prnewswire.com

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Boston Partners Raises Holdings in Century Communities, Inc. $CCS

Dec -01

Source: defenseworld.net

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Creative Planning Purchases 20,447 Shares of Century Communities, Inc. $CCS

Nov -26

Source: defenseworld.net

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Creative Planning Has $2.13 Million Holdings in Century Communities, Inc. $CCS

Nov -26

Source: defenseworld.net

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Century Communities Reveals New Homes Coming Soon to Davis, CA

Nov -24

Source: prnewswire.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Taylor Morrison

A-Score: 5.4/10

Value: 7.9

Growth: 5.7

Quality: 7.2

Yield: 0.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Green Brick Partners

A-Score: 5.4/10

Value: 6.5

Growth: 8.4

Quality: 7.9

Yield: 0.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
M/I Homes

A-Score: 5.4/10

Value: 7.8

Growth: 8.2

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Tri Pointe Homes

A-Score: 5.2/10

Value: 8.4

Growth: 8.2

Quality: 6.4

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Meritage Homes

A-Score: 5.2/10

Value: 8.4

Growth: 5.3

Quality: 6.5

Yield: 3.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Century Communities

A-Score: 4.9/10

Value: 7.8

Growth: 7.6

Quality: 4.6

Yield: 3.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.23$

Current Price

63.23$

Potential

-0.00%

Expected Cash-Flows