F

Century Communities, Inc. — Earnings Quality Grade F

CCS · Real Estate

Major red flags

Revenue
$4.1B
2025
Net Income
$148M
2025
Gross Margin
17.4%
Free Cash Flow
$124M
01

Screening Summary

11
Passed
4
Watch
2
Failed
-2.32
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 5 days, change +1 days YoY

!
A2AR vs Revenue Growth

AR growth 13.8% exceeds revenue growth -6.4%

A3Revenue vs CFFO

Revenue -6.4%, CFFO 21.8%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 2.8% vs COGS -1.2%. Normal

B2CapEx vs Revenue

CapEx growth -82.6% vs revenue -6.4%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 70.5%, exceeds 70%

B4Gross Margin

Gross margin 17.4%, change -4.3pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.04. Profits backed by cash

C2Free Cash Flow

FCF < 50% of Net Income for 2 years

C3Accruals Ratio

Accruals ratio = -0.1%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 8% of debt $1.4B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 2% of equity. Manageable

!
D2Leverage

Debt/EBITDA = 6.1x (>4x). Financial stress

D3Soft Asset Growth

Other assets -1.1% vs revenue -6.4%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change -37% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.32 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.32
-4.0 Clean-2.22 Grey-1.78 Danger0
1.215
DSRI
AR growing faster than revenue?
1.248
GMI
Gross margin declining?
0.955
AQI
Asset quality deteriorating?
0.936
SGI
Revenue growth rate
0.308
DEPI
Depreciation slowing?
1.044
SGAI
SG&A ratio changing?
-0.0012
TATA
Accruals level
0.993
LVGI
Leverage increasing?
05

Altman Z-Score

8.97
Safe Zone
0 Distress1.102.605.0+ Safe
0.8512
Liquidity
0.4945
Cumulative profit
0.0473
Operating efficiency
1.3873
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25