CORECIVIC INC (CXW) Stock Fundamental Analysis
NYSE:CXW - New York Stock Exchange, Inc. - US21871N1019 - Common Stock - Currency: USD
CXW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. CXW has only an average score on both its financial health and profitability. CXW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CXW had positive earnings in the past year.
CXW had a positive operating cash flow in the past year.
CXW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CXW had a positive operating cash flow.
1.2 Ratios
CXW's Return On Assets of 2.81% is fine compared to the rest of the industry. CXW outperforms 60.71% of its industry peers.
CXW has a better Return On Equity (5.72%) than 60.71% of its industry peers.
CXW has a Return On Invested Capital of 4.81%. This is comparable to the rest of the industry: CXW outperforms 51.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CXW is significantly below the industry average of 11.60%.
The last Return On Invested Capital (4.81%) for CXW is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.72% | ||
| ROIC | 4.81% |
ROA(3y)2.77%
ROA(5y)1.65%
ROE(3y)5.91%
ROE(5y)3.57%
ROIC(3y)4.72%
ROIC(5y)4.97%
1.3 Margins
Looking at the Profit Margin, with a value of 4.33%, CXW is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
In the last couple of years the Profit Margin of CXW has declined.
The Operating Margin of CXW (9.29%) is better than 67.86% of its industry peers.
CXW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 23.57%, CXW is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CXW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.29% | ||
| PM (TTM) | 4.33% | ||
| GM | 23.57% |
OM growth 3Y-11.18%
OM growth 5Y-7.87%
PM growth 3YN/A
PM growth 5Y-18.12%
GM growth 3Y-5.42%
GM growth 5Y-3.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CXW is destroying value.
The number of shares outstanding for CXW has been reduced compared to 1 year ago.
Compared to 5 years ago, CXW has less shares outstanding
CXW has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that CXW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CXW (1.65) is comparable to the rest of the industry.
The Debt to FCF ratio of CXW is 6.22, which is on the high side as it means it would take CXW, 6.22 years of fcf income to pay off all of its debts.
CXW's Debt to FCF ratio of 6.22 is fine compared to the rest of the industry. CXW outperforms 65.48% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that CXW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, CXW perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.62
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.55 indicates that CXW should not have too much problems paying its short term obligations.
The Current ratio of CXW (1.55) is comparable to the rest of the industry.
CXW has a Quick Ratio of 1.55. This is a normal value and indicates that CXW is financially healthy and should not expect problems in meeting its short term obligations.
CXW has a Quick ratio of 1.55. This is in the better half of the industry: CXW outperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
CXW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.71%, which is quite impressive.
CXW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.17% yearly.
Looking at the last year, CXW shows a small growth in Revenue. The Revenue has grown by 0.53% in the last year.
CXW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.
EPS 1Y (TTM)35.71%
EPS 3Y25.31%
EPS 5Y-17.17%
EPS Q2Q%187.5%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y1.74%
Revenue growth 5Y-0.19%
Sales Q2Q%-2.41%
3.2 Future
CXW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.84% yearly.
CXW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.54% yearly.
EPS Next Y53.71%
EPS Next 2Y51.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.08%
Revenue Next 2Y9.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.80, CXW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CXW is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CXW to the average of the S&P500 Index (26.82), we can say CXW is valued inline with the index average.
With a Price/Forward Earnings ratio of 13.94, CXW is valued correctly.
CXW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CXW is cheaper than 77.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, CXW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CXW indicates a somewhat cheap valuation: CXW is cheaper than 66.67% of the companies listed in the same industry.
CXW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CXW is cheaper than 77.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
CXW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CXW's earnings are expected to grow with 51.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y51.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for CXW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.61
-0.43 (-2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.53%
Inst Owner Change0.03%
Ins Owners1.91%
Ins Owner Change8.99%
Market Cap2.14B
Analysts82.22
Price Target31.54 (60.84%)
Short Float %2.43%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-76.74%
DP0.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)76.43%
Min EPS beat(2)68.32%
Max EPS beat(2)84.54%
EPS beat(4)4
Avg EPS beat(4)74.53%
Min EPS beat(4)31.5%
Max EPS beat(4)113.77%
EPS beat(8)6
Avg EPS beat(8)34.92%
EPS beat(12)8
Avg EPS beat(12)20.72%
EPS beat(16)10
Avg EPS beat(16)23.97%
Revenue beat(2)2
Avg Revenue beat(2)1.56%
Min Revenue beat(2)1.11%
Max Revenue beat(2)2.02%
Revenue beat(4)4
Avg Revenue beat(4)1.85%
Min Revenue beat(4)0.7%
Max Revenue beat(4)3.59%
Revenue beat(8)6
Avg Revenue beat(8)1.2%
Revenue beat(12)6
Avg Revenue beat(12)0.26%
Revenue beat(16)6
Avg Revenue beat(16)-0.33%
PT rev (1m)-1.85%
PT rev (3m)1.37%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)17.37%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)27.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 13.94 | ||
| P/S | 1.1 | ||
| P/FCF | 13.54 | ||
| P/OCF | 8.8 | ||
| P/B | 1.45 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)0.76
EY3.88%
EPS(NY)1.41
Fwd EY7.17%
FCF(TTM)1.45
FCFY7.38%
OCF(TTM)2.23
OCFY11.37%
SpS17.86
BVpS13.51
TBVpS13.47
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.72% | ||
| ROCE | 6.62% | ||
| ROIC | 4.81% | ||
| ROICexc | 4.95% | ||
| ROICexgc | 4.96% | ||
| OM | 9.29% | ||
| PM (TTM) | 4.33% | ||
| GM | 23.57% | ||
| FCFM | 8.11% |
ROA(3y)2.77%
ROA(5y)1.65%
ROE(3y)5.91%
ROE(5y)3.57%
ROIC(3y)4.72%
ROIC(5y)4.97%
ROICexc(3y)4.95%
ROICexc(5y)5.26%
ROICexgc(3y)4.97%
ROICexgc(5y)5.28%
ROCE(3y)6.5%
ROCE(5y)6.83%
ROICexcg growth 3Y-6%
ROICexcg growth 5Y-3.21%
ROICexc growth 3Y-5.99%
ROICexc growth 5Y-2.92%
OM growth 3Y-11.18%
OM growth 5Y-7.87%
PM growth 3YN/A
PM growth 5Y-18.12%
GM growth 3Y-5.42%
GM growth 5Y-3.25%
F-Score9
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 67.21% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 3.03 | ||
| Cash Conversion | 79% | ||
| Profit Quality | 187.2% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 1.65 |
F-Score9
WACC7.73%
ROIC/WACC0.62
Cap/Depr(3y)58.14%
Cap/Depr(5y)58%
Cap/Sales(3y)3.91%
Cap/Sales(5y)4.1%
Profit Quality(3y)195.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.71%
EPS 3Y25.31%
EPS 5Y-17.17%
EPS Q2Q%187.5%
EPS Next Y53.71%
EPS Next 2Y51.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.53%
Revenue growth 3Y1.74%
Revenue growth 5Y-0.19%
Sales Q2Q%-2.41%
Revenue Next Year5.08%
Revenue Next 2Y9.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.31%
EBIT growth 3Y-9.64%
EBIT growth 5Y-8.05%
EBIT Next Year99.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y135.79%
FCF growth 3Y2.78%
FCF growth 5Y4.21%
OCF growth 1Y66.97%
OCF growth 3Y0.74%
OCF growth 5Y-5.35%