Century Communities Inc (CCS)

Century Communities Inc. Stock Analysis

Company Profile:

Detailed history and background:

Century Communities Inc. (NYSE: CCS), founded in 1978, is a leading homebuilder operating across 22 states in the U.S. It focuses primarily on entry-level, single-family detached and attached homes. Since 2015, the company's strategy shifted toward building more homes for first-time and move-up buyers.

Core business areas:

• Homebuilding: The core business involves designing, selling, and constructing homes in various communities across the US, catering to first-time and move-up buyers.
• Land development: Century Communities also acquires and develops raw land for future homebuilding projects.

Leadership and Corporate Structure:

Board of Directors:

• Dale R. Gentry (Non-Executive Chairman)
• David B. Wishnev (Chief Strategy and Growth Officer & Executive Vice President)
• Robert P. Hudson Jr. (Executive Vice President and Chief Financial Officer)
• Sarah C. Beeson (Independent Board Member)
• Timothy R. Eller (Executive Vice President, Construction & Operations)
• David P. Preschlack (President, North Region & Executive Vice President)
• Stephen M. Quirk (President, Southeast & Mountain Regions & Executive Vice President)

Top Management:

• Dale R. Gentry (Non-Executive Chairman)
• David R. Livermore, Jr. (President and Chief Executive Officer)
• David B. Wishnev (Chief Strategy and Growth Officer & Executive Vice President)
• Robert P. Hudson Jr. (Executive Vice President and Chief Financial Officer)

Top Products & Market Share:

Top Products:

• Single-family detached homes
• Townhomes and condominiums

Global Market Share: Century Communities holds approximately a 1% share of the single-family home construction market in the U.S.

US Market Share:

• The company ranks as the 12th largest homebuilder by revenue in 2022.
• Holds approximately a 2.3% market share in the top 200 MSAs.

Product Performance Comparison:

• Century Communities offers competitive products with a strong focus on affordability and quality.
• They have received several awards and recognitions for customer satisfaction and design.
• They face strong competition from larger national and regional homebuilders, offering similar products and pricing strategies.

Market Dynamics:

The single-family home construction industry is highly cyclical and influenced by several factors:

• Economic Growth: Strong economic conditions typically drive demand for new homes.
• Interest Rates: Lower mortgage rates can boost affordability and stimulate demand.
• Demographics: Increasing household formation among millennials and Gen Z is a significant growth driver.
• Housing Supply & Inventory Levels: Limited housing supply can create stronger demand and price increases, benefiting builders.

Century Communities is well-positioned within the industry due to its:

• Focus on entry-level and first-time buyers who are less sensitive to interest rate fluctuations.
• Geographic diversification across various states and regions, mitigating risks associated with local market fluctuations.

Total Addressable Market:

The U.S. single-family home construction industry represented a market of approximately $300 billion in revenue in 2022. This market is projected to grow at an average rate of around 3.5% over the next five years.

Financial Performance:

Key Metrics (as of November 14, 2023):

• Revenue (TTM): $2.64 Billion
• Net Income (TTM): $425.87 Million