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CoreCivic Inc (CXW)
NYSE:CXW
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CoreCivic
(NYSE:CXW)
Rating:67Neutral
Price Target:
$22.00
▲(8.00% Upside)
CoreCivic (CXW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)21.5
Beta (1Y)1.16
Revenue Growth1.62%
EPS Growth55.45%
CountryUS
Employees11,649
SectorIndustrials
Sector Strength79
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.35
Shares Outstanding107,059,950
10 Day Avg. Volume1,082,804
30 Day Avg. Volume1,074,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit6.98
Enterprise Value/Ebitda9.74
Forecast
1Y Price Target
$29.60Price Target Upside45.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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 generates revenue primarily through contracts with federal, state, and local government agencies to manage and operate correctional facilities, detention centers, and reentry programs. The company's revenue model is based on per diem payments for each inmate housed in its facilities, which are often regulated by government contracts. Key revenue streams include the operation of private prisons, immigration detention centers, and community residential facilities. Additionally, CoreCivic may earn revenue from ancillary services such as inmate healthcare and rehabilitation programs. Significant partnerships with government agencies, including the Federal Bureau of Prisons and U.S. Immigration and Customs Enforcement (ICE), contribute to its earnings, as these relationships ensure a steady inflow of contracts and occupancy rates.
CoreCivic Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, with record ICE detention populations driving significant revenue growth and improved financial guidance. Challenges such as legal delays at the Midwest Regional Reception Center and decreased income from Dilley were noted but outweighed by positive developments.Q2-2025 Updates
Positive Updates
Record ICE Detention Populations
The ICE detention populations reached 57,861 by the end of June 2025, the highest ever recorded, marking a 28% increase from the end of 2024.
Significant Revenue Growth
Total revenue increased by 9.8% from Q2 2024 to Q2 2025. Adjusted EBITDA rose to $103.3 million, up 23.2% from the prior year.
Share Repurchase Program
CoreCivic repurchased 2 million shares at a cost of $43.2 million in Q2, increasing year-to-date repurchases to 3.9 million shares.
Farmville Detention Center Acquisition
Completed the acquisition of the Farmville Detention Center for $67 million, expected to add substantial value to shareholders.
Updated 2025 Financial Guidance
Adjusted EPS guidance increased to $1.07-$1.14 from $0.83-$0.92. Adjusted EBITDA guidance was raised to $365-$371 million from $331-$335 million.
Negative Updates
Midwest Regional Reception Center Legal Delays
The intake process at the Midwest Regional Reception Center has been delayed due to a lawsuit, creating uncertainty around the facility's activation.
Dilley Facility Net Income Decrease
The Dilley Immigration Processing Center accounted for a net decrease in facility net operating income of $11.4 million from Q2 2024.
Occupancy Challenges
Occupancy for Safety and Community segments was 76.8%, with a need for further improvements to drive margin enhancements.
Company Guidance
During CoreCivic's second quarter 2025 earnings call, the company provided extensive guidance for the fiscal year, highlighting significant growth and future prospects. CoreCivic reported a total revenue increase of 9.8% from the second quarter of 2024 to the second quarter of 2025, with adjusted EBITDA rising by 23.2% to $103.3 million. The company also updated its full-year 2025 financial guidance, projecting adjusted diluted EPS between $1.07 and $1.14, normalized FFO per share from $1.99 to $2.07, and adjusted EBITDA between $365 million and $371 million. This guidance reflects the impact of ongoing facility reactivations and the acquisition of the Farmville Detention Center, which is expected to generate approximately $40 million in annual revenue. Furthermore, CoreCivic discussed the implications of the One Big Beautiful Bill Act, which allocates significant funding for federal detention capacity, suggesting a robust demand for its services in the near future. The company also emphasized its strategic capital allocation, having repurchased 2 million shares of its common stock in the second quarter at a cost of $43.2 million, with a remaining authorization of $237.9 million for further repurchases.CoreCivic Financial Statement Overview
Summary
CoreCivic demonstrates stable financial performance with moderate growth and improved profitability. The company has reduced its leverage while maintaining operational efficiency. Cash flow generation is strong, supporting financial health. However, there is room for improvement in cost management and further strengthening of the balance sheet.Income Statement
CoreCivic's income statement shows moderate revenue growth with a TTM increase of 2.47%. The gross profit margin has decreased slightly from previous years, indicating some pressure on cost management. However, the net profit margin has improved to 5.21% in the TTM, reflecting better profitability. The EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a manageable debt-to-equity ratio of 0.69 in the TTM, showing a decrease from previous years, which is a positive sign of reduced leverage. Return on equity has improved to 7.03%, indicating better utilization of equity. However, the equity ratio is moderate, suggesting a balanced but not overly strong financial position.60
Neutral
Cash Flow
Cash flow analysis reveals a positive trend with an 8.05% growth in free cash flow in the TTM. The operating cash flow to net income ratio is 0.43, indicating that operating cash flow is covering net income adequately. The free cash flow to net income ratio is 0.69, showing a healthy conversion of net income into free cash flow.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.00B | 1.96B | 1.90B | 1.85B | 1.86B | 1.91B |
| Gross Profit | 453.94M | 468.29M | 306.89M | 431.54M | 525.55M | 499.11M |
| EBITDA | 324.95M | 287.39M | 296.10M | 389.08M | 316.38M | 293.88M |
| Net Income | 104.03M | 68.87M | 67.59M | 122.32M | -51.90M | 55.34M |
Balance Sheet | ||||||
| Total Assets | 3.07B | 2.93B | 3.11B | 3.24B | 3.50B | 3.71B |
| Cash, Cash Equivalents and Short-Term Investments | 130.52M | 107.49M | 121.84M | 149.40M | 299.64M | 113.22M |
| Total Debt | 1.02B | 1.01B | 1.21B | 1.25B | 1.53B | 1.79B |
| Total Liabilities | 1.59B | 1.44B | 1.63B | 1.81B | 2.13B | 2.30B |
| Stockholders Equity | 1.48B | 1.49B | 1.48B | 1.43B | 1.37B | 1.39B |
Cash Flow | ||||||
| Free Cash Flow | 170.79M | 197.98M | 161.65M | 72.19M | 182.35M | 271.74M |
| Operating Cash Flow | 271.94M | 269.15M | 231.90M | 153.58M | 263.23M | 355.53M |
| Investing Cash Flow | -92.51M | -53.82M | -58.87M | 73.04M | 238.42M | 12.97M |
| Financing Cash Flow | -104.16M | -222.18M | -206.24M | -375.16M | -327.71M | -350.82M |
CoreCivic Technical Analysis
Negative
20.37
Price Trends
20.70
Negative
21.25
Negative
20.98
Negative
Market Momentum
>-0.01
Negative
47.46
Neutral
49.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXW, the sentiment is Negative. The current price of 20.37 is above the 20-day moving average (MA) of 20.35, below the 50-day MA of 20.70, and below the 200-day MA of 20.98, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.12B | 26.46 | 7.56% | 6.41% | 1.37% | -16.66% | |
70 Outperform | $485.81M | 8.94 | 14.30% | 12.64% | -2.90% | 282.07% | |
67 Neutral | $2.18B | 21.47 | 7.11% | ― | 1.62% | 55.45% | |
66 Neutral | $3.30B | 82.29 | 2.07% | 4.22% | -1.15% | 14.51% | |
66 Neutral | $3.10B | 31.07 | 14.89% | 8.90% | -2.49% | -52.99% | |
64 Neutral | $10.95B | 16.10 | 8.81% | 1.99% | 2.59% | -16.41% | |
56 Neutral | $1.50B | 26.42 | -3.72% | 2.82% | 1.95% | 353.63% |
* Industrials Sector Average
Performance Comparison
CXW
CoreCivic
20.37
6.58
47.72%
PCH
PotlatchDeltic
42.69
1.59
3.87%
EPR
EPR Properties
54.10
9.81
22.15%
OUT
Outfront Media
18.54
3.01
19.38%
FPI
Farmland
11.00
2.08
23.32%
UNIT
Uniti Group
6.49
-0.74
-10.24%
CoreCivic Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
CoreCivic Announces CEO Transition Effective January 2026
Positive
Aug 18, 2025
On August 18, 2025, CoreCivic announced that CEO Damon T. Hininger will step down as CEO and resign from the Board of Directors effective January 1, 2026. Patrick Swindle, currently the President and COO, will succeed Hininger as CEO and join the Board. Hininger will remain as a Special Advisor to the CEO and Chairman of the Board until March 31, 2027. The transition is expected to ensure continuity and leverage Swindle’s extensive experience in leading CoreCivic through a period of growth and operational transformation. This leadership change is positioned to maintain CoreCivic’s trajectory of growth and innovation, benefiting government partners and stakeholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.