Last Updated: 07 Nov 2024
Executive Summary
Century Communities Inc. (CCS) is a leading homebuilder in the United States, with a focus on single-family homes. The company has a strong track record of growth and profitability, and is well-positioned to benefit from the continued demand for housing. The stock is currently trading at $89.51, and is undervalued based on its fundamentals and technical analysis.
Company Overview
Century Communities is headquartered in Greenwood Village, Colorado, and operates in 17 states across the country. The company designs, develops, constructs, markets, and sells attached and detached single-family homes. Century Communities targets first-time homebuyers, move-up buyers, and active adults.
Fundamental Analysis
Century Communities has a strong financial profile. The company has a market capitalization of $2.89 billion, and has generated revenue of $4.33 billion over the past 12 months. The company's EBITDA is $467.1 million, and its net income is $342.1 million. Century Communities has a strong balance sheet, with $1.1 billion in cash and equivalents and $1.8 billion in debt. The company's debt-to-equity ratio is 0.67, which is below the industry average.
Century Communities is trading at a trailing price-to-earnings (P/E) ratio of 9.22, which is below the industry average of 10.5. The company's forward P/E ratio is 6.56, which is also below the industry average. Century Communities is also trading at a discount to its book value, with a price-to-book (P/B) ratio of 1.14.
Technical Analysis
Century Communities is currently trading above its 50-day moving average of $98.23, and above its 200-day moving average of $89.99. The stock is also trading above its support level of $86.50. The technical indicators are bullish, and suggest that the stock is likely to continue to rise in the short term.
Short Term Outlook
The short-term outlook for Century Communities is positive. The company is expected to continue to benefit from the strong demand for housing, and is expected to report strong earnings in the coming quarters. The stock is likely to continue to rise in the short term, and could reach $100 in the next few months.
Long Term Outlook
The long-term outlook for Century Communities is also positive. The company is well-positioned to benefit from the continued growth of the housing market, and is expected to continue to grow its revenue and earnings in the coming years. The stock is likely to continue to rise in the long term, and could reach $150 in the next five years.
Analyst Recommendations
The majority of analysts have a buy rating on Century Communities. The average analyst price target is $108.33, which represents a potential upside of 21% from the current price.
