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CoreCivic Inc (CXW)
NYSE:CXW
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CoreCivic
(NYSE:CXW)
64Neutral
CoreCivic (CXW) vs. S&P 500 (SPY)
Market Cap
$2.22B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)32.8
Beta (1Y)1.35
Revenue Growth3.43%
EPS Growth4.64%
CountryUS
Employees11,649
SectorIndustrials
Sector Strength70
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.62
Shares Outstanding108,864,210
10 Day Avg. Volume1,270,265
30 Day Avg. Volume1,467,981
Financial Highlights & Ratios
PEG Ratio7.07
Price to Book (P/B)N/A
Price to Sales (P/S)1.11
Price to Cash Flow (P/CF)13.90
P/FCF Ratio17.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.50Price Target Upside40.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
CoreCivic Business Overview & Revenue Model
Company DescriptionCoreCivic, Inc. owns and operates partnership correctional, detention, and residential reentry facilities in the United States. It operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. Its correctional, detention, and residential reentry facilities offer rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment. As of December 31, 2021, the company owned and operated 46 correctional and detention facilities, 26 residential reentry centers, and 10 properties for lease. The company was founded in 1983 and is based in Brentwood, Tennessee.
How the Company Makes MoneyCoreCivic makes money primarily through contracts with government agencies for the management and operation of correctional and detention facilities. Revenue is generated through long-term contracts where the company is paid a per diem rate per inmate housed at its facilities. Additionally, CoreCivic earns income from its real estate segment by leasing facilities to government agencies, providing a stable and recurring revenue stream. The company's financial performance is influenced by factors such as occupancy rates, contract renewals, and government policies regarding incarceration and detention. CoreCivic also collaborates with various federal, state, and local agencies to ensure compliance with regulatory standards, further solidifying its role as a key player in the corrections and detention management industry.
CoreCivic Financial Statement Overview
Summary
CoreCivic shows mixed financial performance. Revenue growth and improved operational margins are positive, but the low return on equity and sudden drop in operating cash flow are concerning. The elimination of debt reduces financial risk.Income Statement
CoreCivic has demonstrated moderate growth in its revenue with a 3.43% increase in 2024 compared to 2023. The gross profit margin was high at 100%, suggesting a possible data inconsistency since gross profit equaled total revenue. The EBIT margin improved significantly from 2023 to 2024, indicating better operational efficiency. However, the net profit margin was relatively low due to modest net income, requiring attention to cost management.65
Positive
Balance Sheet
CoreCivic's balance sheet reflects a stable equity position with an equity ratio of 50.9% in 2024, indicating a balanced capital structure. The company has eliminated its debt, significantly reducing financial risk. However, the company’s return on equity is relatively low at 4.61%, suggesting limited efficiency in generating profits from shareholders' equity.70
Positive
Cash Flow
The cash flow statement indicates a concerning trend with operating cash flow dropping to zero in 2024, which could impact liquidity. The previous year showed a stable free cash flow, but the sudden drop points to potential cash management issues. The absence of data for several cash flow metrics limits further analysis.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.96B | 1.90B | 1.85B | 1.86B | 1.91B | Gross Profit |
| 468.29M | 306.89M | 431.54M | 525.55M | 499.11M | EBIT |
| 316.21M | 170.81M | 168.84M | 189.37M | 217.29M | EBITDA |
| 287.39M | 296.10M | 389.08M | 316.38M | 293.88M | Net Income Common Stockholders |
| 68.87M | 67.59M | 122.32M | -51.90M | 55.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 107.49M | 121.84M | 149.40M | 299.64M | 113.22M | Total Assets |
| 2.93B | 3.11B | 3.24B | 3.50B | 3.71B | Total Debt |
| 1.01B | 1.21B | 1.25B | 1.53B | 1.79B | Net Debt |
| 905.38M | 1.09B | 1.10B | 1.23B | 1.67B | Total Liabilities |
| 1.44B | 1.63B | 1.81B | 2.13B | 2.30B | Stockholders Equity |
| 1.49B | 1.48B | 1.43B | 1.37B | 1.39B |
| Cash Flow | Free Cash Flow | |||
| 197.98M | 161.65M | 72.19M | 182.35M | 271.74M | Operating Cash Flow |
| 269.15M | 231.90M | 153.58M | 263.23M | 355.53M | Investing Cash Flow |
| -53.82M | -58.87M | 73.04M | 238.42M | 12.97M | Financing Cash Flow |
| -222.18M | -206.24M | -375.16M | -327.71M | -350.82M |
CoreCivic Technical Analysis
Positive
20.25
Price Trends
19.89
Positive
20.25
Positive
16.72
Positive
Market Momentum
0.26
Negative
57.32
Neutral
69.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXW, the sentiment is Positive. The current price of 20.25 is above the 20-day moving average (MA) of 19.30, above the 50-day MA of 19.89, and above the 200-day MA of 16.72, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXW.
CoreCivic Risk Analysis
CoreCivic disclosed 41 risk factors in its most recent earnings report. CoreCivic reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CoreCivic Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $101.08B | 44.89 | 91.38% | 3.00% | -3.05% | 51.74% | |
70 Outperform | $38.94B | 41.27 | 11.61% | ― | 11.95% | -1.25% | |
64 Neutral | $2.22B | 32.84 | 4.64% | ― | 3.43% | 4.64% | |
63 Neutral | $4.16B | 152.70 | 2.08% | ― | 0.44% | -71.78% | |
62 Neutral | $8.27B | 14.03 | 2.36% | 3.08% | 3.85% | -14.32% | |
60 Neutral | $3.54B | ― | -5.01% | 10.51% | -12.86% | -182.05% | |
56 Neutral | $25.71B | 143.93 | -35.81% | 3.12% | 12.22% | -2.68% |
* Industrials Sector Average
Performance Comparison
CXW
CoreCivic
20.37
4.72
30.16%
AMT
American Tower
212.80
25.06
13.35%
CBRE
CBRE Group
133.87
37.97
39.59%
GEO
Geo Group
29.03
14.51
99.93%
IRM
Iron Mountain
90.09
14.37
18.98%
BXMT
Blackstone Mortgage
20.29
2.52
14.18%
CoreCivic Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: 7.48% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautious optimism with CoreCivic reporting strong occupancy and successful new contracts while facing challenges in federal revenue declines and impacts from contract terminations.Highlights
Strong Occupancy and Revenue Growth
CoreCivic's occupancy for Q4 2024 was 75.5%, marking their highest level since early 2020. Excluding certain closed facilities, underlying revenue growth increased 8% year-over-year.
Positive Guidance and Potential Growth
The company anticipates significant growth opportunities due to policy changes and new contracts with federal partners. 2025 financial guidance includes a potential increase in occupancy and revenue.
Operational and Staffing Improvements
Investments in staffing have improved facility performance, allowing for reduced temporary labor costs and improved audit compliance scores.
Successful New Contracts with State Partners
CoreCivic signed new management contracts with Montana and continued contracts with Wyoming and other states, boosting occupancy and revenue.
Lowlights
Decline in Federal Revenue
Federal revenue from ICE and US Marshals Service declined by 12% in Q4 2024 compared to the prior year, with revenue from ICE declining 22%.
Contract Terminations Impact
The termination of the South Texas Family Residential Center contract and expiration of a lease with California negatively impacted adjusted EBITDA and earnings per share.
Financial Challenges from Idle Facilities
Idle facilities require significant expenses for potential activations, impacting the company's financial outlook.
Company Guidance
During CoreCivic's fourth quarter 2024 earnings call, financial guidance for 2025 was provided, highlighting anticipated growth opportunities due to changes in federal immigration policies. The company expects diluted EPS to range between $0.48 to $0.61 and FFO per share to be $1.37 to $1.50. CoreCivic projects steady increases in federal populations throughout 2025, driven by potential new contracts, especially with Immigration and Customs Enforcement (ICE) and the United States Marshals Service. The company has proposed expanding capacity by 28,000 beds, which could generate up to $1.5 billion in revenue and $200 to $275 million in incremental EBITDA if fully activated. Capital expenditures are forecasted between $60 to $65 million for maintenance and $40 to $45 million for potential facility activations. The company has also repurchased shares worth $68.5 million in 2024 and maintains a leverage target of 2.25x to 2.75x net debt to adjusted EBITDA.CoreCivic Corporate Events
Executive/Board Changes
CoreCivic Board Member Anne Mariucci Steps Down
Neutral
Feb 28, 2025
On February 27, 2025, Anne L. Mariucci announced her decision not to seek re-election to CoreCivic’s Board of Directors, citing a desire to focus on other professional commitments. Her resignation will take effect at the company’s 2025 Annual Meeting, leading to a reduction in the Board’s size from eleven to ten members.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.