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Century Communities (STU:CCT) Financial Strength : 6 (As of Jun. 2024)


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What is Century Communities Financial Strength?

Century Communities has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Century Communities's interest coverage with the available data. Century Communities's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.35. As of today, Century Communities's Altman Z-Score is 3.88.


Competitive Comparison of Century Communities's Financial Strength

For the Real Estate - Development subindustry, Century Communities's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Century Communities's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Century Communities's Financial Strength distribution charts can be found below:

* The bar in red indicates where Century Communities's Financial Strength falls into.



Century Communities Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Century Communities's Interest Expense for the months ended in Jun. 2024 was €0 Mil. Its Operating Income for the months ended in Jun. 2024 was €102 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €1,230 Mil.

Century Communities's Interest Coverage for the quarter that ended in Jun. 2024 is

GuruFocus does not calculate Century Communities's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Century Communities's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(103.119 + 1230.145) / 3862.596
=0.35

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Century Communities has a Z-score of 3.88, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.88 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Century Communities  (STU:CCT) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Century Communities has the Financial Strength Rank of 6.


Century Communities Financial Strength Related Terms

Thank you for viewing the detailed overview of Century Communities's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Century Communities Business Description

Traded in Other Exchanges
Address
8390 East Crescent Parkway, Suite 650, Greenwood Village, CO, USA, 80111
Century Communities Inc is a construction company that focuses on the residential market. It has five homebuilding segments: West, Mountain, Texas, Southeast, and Century Complete. Its sixth reportable segment is financial services operations, which provides mortgage, title, and insurance services to homebuyers. It has acquired land for homebuilding operations with the primary intent to develop and construct single-family detached or attached homes for sale on the acquired land. The company sells homes through its own sales representatives and independent real estate brokers. It also advertises directly to potential homebuyers through the Internet, newspapers, and trade publications. The company generates the most revenue from the Mountain segment.