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Category: Century Communities (CCS)
Date: 30 March 2021 Stock price of Century Communities: $58.73 Market Capital of Century Communities: $1.98 billion We take a a look at the 4th quarter 2020 earnings report of Century Communities (CCS) a top 10 national homebuilder. Offering new homes under the Century Communities and Century Complete brands, Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction
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Dale Francescon, Co-Chief Executive Officer, stated, “Our exceptional performance in the fourth quarter concludes an impressive year, reflecting our ongoing momentum and scale benefits, as we capitalized on vigorous housing market demand trends and achieved fourth quarter and full year records in many categories including net new contracts"
More About Century Communities (CCS)
Century Communities, Inc. (NYSE: CCS) is a top 10 national homebuilder. Offering new homes under the Century Communities and Century Complete brands, Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Colorado-based company operates in 17 states across the U.S., and offers title, insurance and lending services in select markets through its Parkway Title, IHL Insurance Agency, and Inspire Home Loan subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.
Overview of Century Communities 4th quarter and full fiscal 2020 earnings
Fourth Quarter 2020 Highlights Compared to Fourth Quarter 2019
- Net income increased 72% to a Company record $91.8 million or $2.72 per diluted share
- Home sales revenues increased 22% to a Company record $946.8 million
- Deliveries grew to a Company record 2,826 homes, a 14% increase
- Net new home contracts increased 45% to a fourth quarter record of 2,566 homes
- Homes in backlog improved 66% to a fourth quarter record 3,439 homes valued at $1.3 billion
- Pre-tax income improved 125% to a Company record $121.2 million
- EBITDA increased 87% to a Company record $144.7 million
- Net homebuilding debt to net capital improved to 27.2% from 45.2%
- Quarter end total liquidity of $1.1 billion
Century Community (CCS) management commentary on 4th quarter 2020 earnings
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced financial results for its fourth quarter and full year ended December 31, 2020.
Dale Francescon, Co-Chief Executive Officer, stated, “Our exceptional performance in the fourth quarter concludes an impressive year, reflecting our ongoing momentum and scale benefits, as we capitalized on vigorous housing market demand trends and achieved fourth quarter and full year records in many categories including net new contracts, home deliveries and home sales revenues, along with the highest quarterly and full year net income in our history. As we continue to increase the penetration within our high-growth markets, we expect to generate further operational efficiencies from our national platform which, coupled with robust price appreciation and continued demand, will drive top-line growth, expanded margins and increased profitability.”
Rob Francescon, Co-Chief Executive Officer, said, “We are confident our positive trajectory will continue as not only did our fourth quarter net new contracts increase 45% over last year but we have seen our sales pace accelerate, with December up 54% and January increasing 77%. We are solidly positioned with a backlog of 3,439 sold homes, an increase of 66%, along with nearly 50,000 owned and controlled lots which will support further increases in deliveries, contracts and community count across our Century Communities and Century Complete brands. We’ve substantially strengthened our balance sheet, further improved our cash position, reduced our net debt-to-net-capital ratio to 27% and are well positioned to generate even higher returns to our shareholders.”
Full Year 2021 Outlook
David Messenger, Chief Financial Officer of the Company, commented, “Our recent performance demonstrates the resiliency of our business and proven ability to execute. We remain encouraged by the strength and health of the housing market and as such, are introducing full year guidance of deliveries in the range of 10,500 to 11,500 homes and homes sales revenues in the range of $3.3 billion to $3.8 billion.”
Dale Francescon, Co-Chief Executive Officer, stated, “Our exceptional performance in the fourth quarter concludes an impressive year, reflecting our ongoing momentum and scale benefits, as we capitalized on vigorous housing market demand trends and achieved fourth quarter and full year records in many categories including net new contracts, home deliveries and home sales revenues, along with the highest quarterly and full year net income in our history. As we continue to increase the penetration within our high-growth markets, we expect to generate further operational efficiencies from our national platform which, coupled with robust price appreciation and continued demand, will drive top-line growth, expanded margins and increased profitability.”
Rob Francescon, Co-Chief Executive Officer, said, “We are confident our positive trajectory will continue as not only did our fourth quarter net new contracts increase 45% over last year but we have seen our sales pace accelerate, with December up 54% and January increasing 77%. We are solidly positioned with a backlog of 3,439 sold homes, an increase of 66%, along with nearly 50,000 owned and controlled lots which will support further increases in deliveries, contracts and community count across our Century Communities and Century Complete brands. We’ve substantially strengthened our balance sheet, further improved our cash position, reduced our net debt-to-net-capital ratio to 27% and are well positioned to generate even higher returns to our shareholders.”
Full Year 2021 Outlook
David Messenger, Chief Financial Officer of the Company, commented, “Our recent performance demonstrates the resiliency of our business and proven ability to execute. We remain encouraged by the strength and health of the housing market and as such, are introducing full year guidance of deliveries in the range of 10,500 to 11,500 homes and homes sales revenues in the range of $3.3 billion to $3.8 billion.”
Century Communities (CCS) stock price history over the last 5 years
The image below shows the stock price history of Century Communities (CCS) over the last 5 years. And its been a good time for Century Communities stockholders with the stock increasing sharply by 227% over the last 5 years. No investor would say no to those type of returns.
The stock of Century Communities (CCS) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Century Communities stock is positive at this point in time.
The stock of Century Communities (CCS) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Century Communities stock is positive at this point in time.
Latest stock valuation of Century Communities
So what is Century Communities (CCS) stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Century Communities (CCS) at $78.90 a stock
We therefore believe the stock of Century Communities (CCS) is undervalued at its current price of $58.73
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $78.90 thus a good entry point into Century Communities (CCS) would be at $71 or below.
We expect the stock of Century Communities to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued
We therefore believe the stock of Century Communities (CCS) is undervalued at its current price of $58.73
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $78.90 thus a good entry point into Century Communities (CCS) would be at $71 or below.
We expect the stock of Century Communities to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued
Next earnings release of Century Communities
It is expected that Centuary Communities (CCS) will release their 1st quarter 2021 earnings report in late June 2021
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