CENTURY COMMUNITIES INC (CCS) Stock Fundamental Analysis
NYSE:CCS - New York Stock Exchange, Inc. - US1565043007 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CCS. CCS was compared to 67 industry peers in the Household Durables industry. CCS has only an average score on both its financial health and profitability. CCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CCS was profitable.
In the past year CCS had a positive cash flow from operations.
CCS had positive earnings in each of the past 5 years.
CCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 7.37%, CCS perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.74%, CCS is in line with its industry, outperforming 55.38% of the companies in the same industry.
The Return On Invested Capital of CCS (9.37%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CCS is in line with the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 12.74% | ||
| ROIC | 9.37% |
ROA(3y)9.18%
ROA(5y)9.81%
ROE(3y)16.01%
ROE(5y)18.47%
ROIC(3y)11.48%
ROIC(5y)12.4%
1.3 Margins
CCS has a Profit Margin of 7.59%. This is in the better half of the industry: CCS outperforms 63.08% of its industry peers.
CCS's Profit Margin has improved in the last couple of years.
The Operating Margin of CCS (11.65%) is better than 69.23% of its industry peers.
In the last couple of years the Operating Margin of CCS has grown nicely.
Looking at the Gross Margin, with a value of 23.39%, CCS is doing worse than 61.54% of the companies in the same industry.
CCS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.65% | ||
| PM (TTM) | 7.59% | ||
| GM | 23.39% |
OM growth 3Y-12.42%
OM growth 5Y9.7%
PM growth 3Y-13.74%
PM growth 5Y11.24%
GM growth 3Y-4.17%
GM growth 5Y4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CCS is creating some value.
Compared to 1 year ago, CCS has less shares outstanding
The number of shares outstanding for CCS has been reduced compared to 5 years ago.
The debt/assets ratio for CCS is higher compared to a year ago.
2.2 Solvency
CCS has an Altman-Z score of 3.53. This indicates that CCS is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.53, CCS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of CCS is 17.02, which is on the high side as it means it would take CCS, 17.02 years of fcf income to pay off all of its debts.
CCS has a Debt to FCF ratio of 17.02. This is comparable to the rest of the industry: CCS outperforms 47.69% of its industry peers.
CCS has a Debt/Equity ratio of 0.56. This is a neutral value indicating CCS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, CCS is doing worse than 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 17.02 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.11
WACC8.45%
2.3 Liquidity
CCS has a Current Ratio of 8.39. This indicates that CCS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CCS (8.39) is better than 87.69% of its industry peers.
A Quick Ratio of 0.46 indicates that CCS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, CCS is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.61% over the past year.
The Earnings Per Share has been growing by 22.96% on average over the past years. This is a very strong growth
The Revenue has grown by 19.12% in the past year. This is quite good.
CCS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.64% yearly.
EPS 1Y (TTM)27.61%
EPS 3Y-11.26%
EPS 5Y22.96%
EPS Q2Q%9.22%
Revenue 1Y (TTM)19.12%
Revenue growth 3Y1.42%
Revenue growth 5Y11.64%
Sales Q2Q%5.63%
3.2 Future
Based on estimates for the next years, CCS will show a small growth in Earnings Per Share. The EPS will grow by 7.86% on average per year.
Based on estimates for the next years, CCS will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
EPS Next Y3.04%
EPS Next 2Y7.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.91%
Revenue Next 2Y10.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.84, the valuation of CCS can be described as very cheap.
Based on the Price/Earnings ratio, CCS is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
CCS is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.64, the valuation of CCS can be described as very cheap.
87.69% of the companies in the same industry are more expensive than CCS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CCS to the average of the S&P500 Index (22.68), we can say CCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CCS is valued a bit cheaper than 70.77% of the companies in the same industry.
CCS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.4 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CCS may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)0.3
EPS Next 2Y7.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CCS has a Yearly Dividend Yield of 1.58%.
CCS's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to the average S&P500 Dividend Yield of 2.27, CCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
CCS has been paying a dividend for over 5 years, so it has already some track record.
CCS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CCS pays out 9.81% of its income as dividend. This is a sustainable payout ratio.
DP9.81%
EPS Next 2Y7.86%
EPS Next 3YN/A
71.16
-2.11 (-2.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.54%
Inst Owner Change-96.66%
Ins Owners13.06%
Ins Owner Change14.74%
Market Cap2.20B
Analysts71.11
Price Target108.12 (51.94%)
Short Float %7.45%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend1.04
Dividend Growth(5Y)N/A
DP9.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-0.3%
Max EPS beat(2)0.09%
EPS beat(4)3
Avg EPS beat(4)11.77%
Min EPS beat(4)-0.3%
Max EPS beat(4)42.46%
EPS beat(8)7
Avg EPS beat(8)30.3%
EPS beat(12)11
Avg EPS beat(12)23.01%
EPS beat(16)15
Avg EPS beat(16)26.06%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-2.27%
Max Revenue beat(2)2.61%
Revenue beat(4)2
Avg Revenue beat(4)4.95%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)19.72%
Revenue beat(8)6
Avg Revenue beat(8)12.56%
Revenue beat(12)9
Avg Revenue beat(12)10.02%
Revenue beat(16)12
Avg Revenue beat(16)9.35%
PT rev (1m)1.92%
PT rev (3m)-2.15%
EPS NQ rev (1m)-20.09%
EPS NQ rev (3m)-19.91%
EPS NY rev (1m)-14.52%
EPS NY rev (3m)-14.31%
Revenue NQ rev (1m)-15.86%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 6.64 | ||
| P/S | 0.5 | ||
| P/FCF | 25.4 | ||
| P/OCF | 17.53 | ||
| P/B | 0.84 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)10.4
EY14.61%
EPS(NY)10.72
Fwd EY15.06%
FCF(TTM)2.8
FCFY3.94%
OCF(TTM)4.06
OCFY5.71%
SpS142.06
BVpS84.65
TBVpS83.33
PEG (NY)2.25
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 12.74% | ||
| ROCE | 12.51% | ||
| ROIC | 9.37% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 11.51% | ||
| OM | 11.65% | ||
| PM (TTM) | 7.59% | ||
| GM | 23.39% | ||
| FCFM | 1.97% |
ROA(3y)9.18%
ROA(5y)9.81%
ROE(3y)16.01%
ROE(5y)18.47%
ROIC(3y)11.48%
ROIC(5y)12.4%
ROICexc(3y)12.32%
ROICexc(5y)13.67%
ROICexgc(3y)14.46%
ROICexgc(5y)16.41%
ROCE(3y)15.8%
ROCE(5y)17.71%
ROICexcg growth 3Y-22.02%
ROICexcg growth 5Y8.94%
ROICexc growth 3Y-20.98%
ROICexc growth 5Y8.42%
OM growth 3Y-12.42%
OM growth 5Y9.7%
PM growth 3Y-13.74%
PM growth 5Y11.24%
GM growth 3Y-4.17%
GM growth 5Y4%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 17.02 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 160.46% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 23.42% | ||
| Profit Quality | 25.98% | ||
| Current Ratio | 8.39 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 3.53 |
F-Score7
WACC8.45%
ROIC/WACC1.11
Cap/Depr(3y)205.37%
Cap/Depr(5y)157.48%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.61%
EPS 3Y-11.26%
EPS 5Y22.96%
EPS Q2Q%9.22%
EPS Next Y3.04%
EPS Next 2Y7.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.12%
Revenue growth 3Y1.42%
Revenue growth 5Y11.64%
Sales Q2Q%5.63%
Revenue Next Year11.91%
Revenue Next 2Y10.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.74%
EBIT growth 3Y-11.18%
EBIT growth 5Y22.47%
EBIT Next Year37.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5835.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y201.95%
OCF growth 3YN/A
OCF growth 5YN/A