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Century Communities (Century Communities) Beneish M-Score : -1.72 (As of May. 12, 2024)


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What is Century Communities Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.72 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Century Communities's Beneish M-Score or its related term are showing as below:

CCS' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92   Med: -1.62   Max: 0.92
Current: -1.72

During the past 12 years, the highest Beneish M-Score of Century Communities was 0.92. The lowest was -2.92. And the median was -1.62.


Century Communities Beneish M-Score Historical Data

The historical data trend for Century Communities's Beneish M-Score can be seen below:

* 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.

* Premium members only.

Century Communities Beneish M-Score Chart

Century Communities Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.48 -2.72 -0.94 -1.75 -1.73

Century Communities Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.08 -2.44 -2.12 -1.73 -1.72

Competitive Comparison of Century Communities's Beneish M-Score

For the Residential Construction subindustry, Century Communities's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Century Communities's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Century Communities's Beneish M-Score falls into.



Century Communities Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Century Communities for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2992+0.528 * 1.0375+0.404 * 1.064+0.892 * 0.9164+0.115 * 1.4161
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1824+4.679 * 0.105626-0.327 * 0.9947
=-1.72

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $94 Mil.
Revenue was 948.543 + 1205.581 + 889.423 + 844.191 = $3,888 Mil.
Gross Profit was 208.059 + 261.326 + 225.58 + 175.212 = $870 Mil.
Total Current Assets was $3,694 Mil.
Total Assets was $4,112 Mil.
Property, Plant and Equipment(Net PPE) was $235 Mil.
Depreciation, Depletion and Amortization(DDA) was $18 Mil.
Selling, General, & Admin. Expense(SGA) was $463 Mil.
Total Current Liabilities was $324 Mil.
Long-Term Debt & Capital Lease Obligation was $1,282 Mil.
Net Income was 64.332 + 91.318 + 83.15 + 51.445 = $290 Mil.
Non Operating Income was -9.63 + -3.292 + -1.663 + -1.344 = $-16 Mil.
Cash Flow from Operations was 21.592 + 8.62 + -99.767 + -58.559 = $-128 Mil.
Total Receivables was $79 Mil.
Revenue was 752.99 + 1179.134 + 1144.291 + 1166.142 = $4,243 Mil.
Gross Profit was 140.824 + 226.911 + 288.412 + 329.049 = $985 Mil.
Total Current Assets was $3,451 Mil.
Total Assets was $3,713 Mil.
Property, Plant and Equipment(Net PPE) was $106 Mil.
Depreciation, Depletion and Amortization(DDA) was $12 Mil.
Selling, General, & Admin. Expense(SGA) was $427 Mil.
Total Current Liabilities was $282 Mil.
Long-Term Debt & Capital Lease Obligation was $1,176 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(94.393 / 3887.738) / (79.285 / 4242.557)
=0.02428 / 0.018688
=1.2992

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(985.196 / 4242.557) / (870.177 / 3887.738)
=0.232218 / 0.223826
=1.0375

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3693.823 + 234.86) / 4111.577) / (1 - (3451.259 + 106.494) / 3712.977)
=0.044483 / 0.041806
=1.064

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3887.738 / 4242.557
=0.9164

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(11.909 / (11.909 + 106.494)) / (17.957 / (17.957 + 234.86))
=0.10058 / 0.071028
=1.4161

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(463.107 / 3887.738) / (427.416 / 4242.557)
=0.11912 / 0.100745
=1.1824

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1282.209 + 324.19) / 4111.577) / ((1176.399 + 281.982) / 3712.977)
=0.390701 / 0.392779
=0.9947

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(290.245 - -15.929 - -128.114) / 4111.577
=0.105626

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Century Communities has a M-score of -1.72 signals that the company is likely to be a manipulator.


Century Communities Beneish M-Score Related Terms

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Century Communities (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.
Executives
Elisa Z Ramirez director 1225 17TH STREET, SUITE 2600, DENVER CO 80202
David L Messenger officer: Chief Financial Officer
John Scott Dixon officer: Chief Accounting Officer CENTURY COMMUNITIES, INC., 8390 E. CRESCENT PARKWAY, STE. 650, GREENWOOD VILLAGE CO 80111
Dale Francescon director, 10 percent owner, officer: See Remarks 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Robert J Francescon director, 10 percent owner, officer: See Remarks 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Patricia L. Arvielo director 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Bennett Wesley Allen Arthur other: General Counsel C/O CENTURY COMMUNITIES, INC., 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Dustin L. Bogue other: Regional President - West UCP, INC., 99 ALMADEN BOULEVARD, SUITE 400, SAN JOSE CA 95113
Stewart Hugh Parker other: Regional President C/O CENTURY COMMUNITIES, INC., 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Richard A Carruthers other: Regional President C/O CENTURY COMMUNITIES, INC., 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Liesel W Cooper other: Regional President C/O CENTURY COMMUNITIES, INC., 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Keith R Guericke director C/O ESSEX PROPERTY TRUST, 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
John P Box director 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
James A Lippman director 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111
Kenneth J Rabel officer: Division President-Colorado 8390 EAST CRESCENT PARKWAY, SUITE 650, GREENWOOD VILLAGE CO 80111