Centex is able to collect on accounts receivable quickly, but more focus needs to be placed on other efficiency areas of the corporation. This disparity may be one of two things, Centex is undervalued at this time, or the market is reflecting some kind of bad information. With Centex, it probably is a bit of both. In the news, there has been much discussion of the slowing economy. One of the first sectors to be affected by such changes is in home construction.
People are less willing to buy new homes if they feel that the economy is slowing down.
Also Centex has retired some of its stock in the past year which may be an indicator that Centex thinks its stock is a bit undervalued. Other Factors Looking at insider trading has shown a mixture of key executives buying and selling securities, with an emphasis on purchasing stock. Additionally, outside institutions are also taking the opportunity to invest in this company. Overall, there has not been a big surge of stocks being sold for this company. I am hesitant to strongly encourage the purchase of this stock.