CENTURY COMMUNITIES INC (CCS) Stock Fundamental Analysis
NYSE:CCS - New York Stock Exchange, Inc. - US1565043007 - Common Stock - Currency: USD
Taking everything into account, CCS scores 5 out of 10 in our fundamental rating. CCS was compared to 64 industry peers in the Household Durables industry. Both the profitability and the financial health of CCS get a neutral evaluation. Nothing too spectacular is happening here. CCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CCS was profitable.
CCS had a positive operating cash flow in the past year.
Each year in the past 5 years CCS has been profitable.
Of the past 5 years CCS 4 years had a positive operating cash flow.
1.2 Ratios
CCS has a Return On Assets (6.78%) which is comparable to the rest of the industry.
The Return On Equity of CCS (11.98%) is comparable to the rest of the industry.
CCS has a Return On Invested Capital of 8.65%. This is comparable to the rest of the industry: CCS outperforms 57.81% of its industry peers.
CCS had an Average Return On Invested Capital over the past 3 years of 11.48%. This is in line with the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 11.98% | ||
| ROIC | 8.65% |
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 7.10%. This is in the better half of the industry: CCS outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of CCS has grown nicely.
The Operating Margin of CCS (10.98%) is better than 64.06% of its industry peers.
In the last couple of years the Operating Margin of CCS has grown nicely.
The Gross Margin of CCS (22.99%) is worse than 64.06% of its industry peers.
CCS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.98% | ||
| PM (TTM) | 7.1% | ||
| GM | 22.99% |
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.
The number of shares outstanding for CCS has been reduced compared to 1 year ago.
Compared to 5 years ago, CCS has less shares outstanding
CCS has a worse debt/assets ratio than last year.
2.2 Solvency
CCS has an Altman-Z score of 3.28. This indicates that CCS is financially healthy and has little risk of bankruptcy at the moment.
CCS has a Altman-Z score (3.28) which is in line with its industry peers.
CCS has a debt to FCF ratio of 50.09. This is a negative value and a sign of low solvency as CCS would need 50.09 years to pay back of all of its debts.
With a Debt to FCF ratio value of 50.09, CCS perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that CCS is somewhat dependend on debt financing.
CCS has a worse Debt to Equity ratio (0.60) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 50.09 | ||
| Altman-Z | 3.28 |
ROIC/WACC1.08
WACC8.04%
2.3 Liquidity
A Current Ratio of 8.61 indicates that CCS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 8.61, CCS belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
CCS has a Quick Ratio of 8.61. This is a bad value and indicates that CCS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.34, CCS is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.61 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
CCS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
CCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.96% yearly.
CCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.97%.
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)6.59%
EPS 3Y-11.26%
EPS 5Y22.96%
EPS Q2Q%-34.5%
Revenue 1Y (TTM)11.97%
Revenue growth 3Y1.42%
Revenue growth 5Y11.64%
Sales Q2Q%-4.78%
3.2 Future
CCS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.55% yearly.
CCS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.66% yearly.
EPS Next Y-18.57%
EPS Next 2Y-15.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6%
Revenue Next 2Y-0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.54, the valuation of CCS can be described as very cheap.
Based on the Price/Earnings ratio, CCS is valued cheaper than 90.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.53, CCS is valued rather cheaply.
CCS is valuated cheaply with a Price/Forward Earnings ratio of 7.25.
Based on the Price/Forward Earnings ratio, CCS is valued a bit cheaper than 78.13% of the companies in the same industry.
CCS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than CCS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CCS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.81 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The decent profitability rating of CCS may justify a higher PE ratio.
A cheap valuation may be justified as CCS's earnings are expected to decrease with -15.55% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-15.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CCS has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
The stock price of CCS dropped by -21.04% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CCS's Dividend Yield is a higher than the industry average which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.39, CCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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
10.82% of the earnings are spent on dividend by CCS. This is a low number and sustainable payout ratio.
DP10.82%
EPS Next 2Y-15.55%
EPS Next 3YN/A
53.75
+1.44 (+2.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners94.54%
Inst Owner Change-1.27%
Ins Owners13.06%
Ins Owner Change16.33%
Market Cap1.64B
Analysts48
Price Target97.92 (82.18%)
Short Float %6.57%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.04
Dividend Growth(5Y)N/A
DP10.82%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.95%
Min EPS beat(2)-23.59%
Max EPS beat(2)-0.3%
EPS beat(4)2
Avg EPS beat(4)-4.74%
Min EPS beat(4)-23.59%
Max EPS beat(4)4.83%
EPS beat(8)6
Avg EPS beat(8)20.93%
EPS beat(12)10
Avg EPS beat(12)20%
EPS beat(16)14
Avg EPS beat(16)19.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.78%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)2.61%
Revenue beat(8)5
Avg Revenue beat(8)9.71%
Revenue beat(12)9
Avg Revenue beat(12)10.12%
Revenue beat(16)11
Avg Revenue beat(16)7.61%
PT rev (1m)0%
PT rev (3m)3.23%
EPS NQ rev (1m)-43.89%
EPS NQ rev (3m)-50.29%
EPS NY rev (1m)-11.74%
EPS NY rev (3m)-20.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 7.25 | ||
| P/S | 0.38 | ||
| P/FCF | 52.81 | ||
| P/OCF | 24.32 | ||
| P/B | 0.64 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)9.71
EY18.07%
EPS(NY)7.42
Fwd EY13.8%
FCF(TTM)1.02
FCFY1.89%
OCF(TTM)2.21
OCFY4.11%
SpS142.49
BVpS84.4
TBVpS83.06
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 11.98% | ||
| ROCE | 11.55% | ||
| ROIC | 8.65% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 10.79% | ||
| OM | 10.98% | ||
| PM (TTM) | 7.1% | ||
| GM | 22.99% | ||
| FCFM | 0.71% |
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-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 50.09 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 144.33% | ||
| Cap/Sales | 0.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.42% | ||
| Profit Quality | 10.07% | ||
| Current Ratio | 8.61 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 3.28 |
F-Score5
WACC8.04%
ROIC/WACC1.08
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)6.59%
EPS 3Y-11.26%
EPS 5Y22.96%
EPS Q2Q%-34.5%
EPS Next Y-18.57%
EPS Next 2Y-15.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.97%
Revenue growth 3Y1.42%
Revenue growth 5Y11.64%
Sales Q2Q%-4.78%
Revenue Next Year-6%
Revenue Next 2Y-0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.89%
EBIT growth 3Y-11.18%
EBIT growth 5Y22.47%
EBIT Next Year-26.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-91.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-83%
OCF growth 3YN/A
OCF growth 5YN/A