CORECIVIC INC (NYSE:CXW) Identified as a Top Value Stock with Strong Fundamentals

CORECIVIC INC (NYSE:CXW) has been found through a methodical screening process built to find stocks that may interest value-focused investors. The method used focuses on finding companies with good fundamental valuation measures, specifically a valuation rating above 7 on a 10-point scale, while also holding acceptable scores in profitability, financial condition, and growth. This method fits with main value investing ideas, which stress buying securities that seem priced low by some type of fundamental study, all while making sure the basic business is steady and run well.

A close look at CoreCivic’s fundamental analysis report shows several factors that make it a noteworthy candidate under this plan. The company gets a valuation rating of 7, showing it is priced well next to its financial basics. Important valuation measures back this view: its forward price-to-earnings ratio is 13.02, which is both under the industry average and much lower than the wider S&P 500. In the same way, the enterprise value to EBITDA and price-to-free-cash-flow ratios indicate the stock is trading at a lower price compared to most industry rivals. For value investors, these numbers point to a possible margin of safety, a key idea of the plan, as they suggest the market might be setting too low a value on the company’s earning ability or asset worth.

Apart from valuation, the company shows suitable financial condition, getting a 5 in this area. While the Altman-Z score brings some worry, other signs are more positive. The current and quick ratios, for example, are similar to or stronger than those of many others, showing enough short-term cash availability. Also, the company has been lowering its share count over recent years and has bettered its debt-to-assets ratio, both of which are good signs about capital use and balance sheet care. A fairly good financial state lowers the chance of lasting capital loss, which is important when investing in possibly low-priced names.

Profitability is another area where CoreCivic maintains its position, also getting a 5. The company’s return on assets and return on equity are strong within the industry, and its operating margin is better than a large number of others. Even though profit margins have had some narrowing in recent years, the basic profitability stays, with good earnings and cash flow from operations reported regularly. For value investors, continued profitability is key, it not only backs the idea of inherent value but also gives a cushion during market drops or business difficulties.

Growth outlook, scored at 5, adds more support to the investment case. While past revenue growth has been moderate, and earnings per share have had changes, future estimates are particularly solid. Analysts forecast yearly EPS growth of above 60% and revenue growth of over 10% in the next few years. If these forecasts happen, they might start a new look at the stock’s market price. In value investing, growth hopes are often less important than current valuation, but when joined, they can greatly increase the possibility for future gains.

This mix of low valuation, steady finances, acceptable profitability, and bettering growth view makes CoreCivic a notable prospect for those using a value-led plan. It represents the concept of looking for low-priced equities with good basics, companies that are not only inexpensive but also operationally strong.

For readers wanting to look into similar investment chances, more screened results based on these standards can be found through this Decent Value Stocks screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their financial situation and risk tolerance before making any investment decisions.