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Century Communities (FRA:CCT) GF Value Rank : 3 (As of May. 24, 2024)


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What is Century Communities GF Value Rank?

Century Communities has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Century Communities's GF Value Rank

For the Residential Construction subindustry, Century Communities's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Century Communities's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Century Communities's GF Value Rank falls into.


Century Communities GF Value Rank Related Terms

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

Century Communities (FRA:CCT) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Century Communities Inc (FRA:CCT) » Definitions » GF Value Rank
Comparable Companies
LGIH DFH CVCO GRBK MHO TPH MDC IBP BZH SKY DHI LEN NVR PHM TSE:1928 TOL LSE:BKG LSE:BDEV TSE:1911 LSE:TW.
Traded in Other Exchanges
CCS:USA CCT:Germany
Address
8390 East Crescent Parkway, Suite 650, Greenwood Village, CO, USA, 80111
Website
https://www.centurycommunities.com
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.