CORECIVIC INC (CXW)

US21871N1019 - Common Stock

15.06  -0.11 (-0.73%)

After market: 15.06 0 (0%)

Fundamental Rating

3

CXW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. While CXW is still in line with the averages on profitability rating, there are concerns on its financial health. CXW is not valued too expensively and it also shows a decent growth rate.



4

1. Profitability

1.1 Basic Checks

In the past year CXW was profitable.
In the past year CXW had a positive cash flow from operations.
Of the past 5 years CXW 4 years were profitable.
Each year in the past 5 years CXW had a positive operating cash flow.

1.2 Ratios

CXW's Return On Assets of 2.14% is fine compared to the rest of the industry. CXW outperforms 61.45% of its industry peers.
Looking at the Return On Equity, with a value of 4.48%, CXW is in line with its industry, outperforming 56.63% of the companies in the same industry.
The Return On Invested Capital of CXW (5.03%) is comparable to the rest of the industry.
CXW had an Average Return On Invested Capital over the past 3 years of 4.93%. This is significantly below the industry average of 9.98%.
The 3 year average ROIC (4.93%) for CXW is below the current ROIC(5.03%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.14%
ROE 4.48%
ROIC 5.03%
ROA(3y)1.49%
ROA(5y)2.18%
ROE(3y)3.11%
ROE(5y)5.39%
ROIC(3y)4.93%
ROIC(5y)5.12%

1.3 Margins

With a decent Profit Margin value of 3.34%, CXW is doing good in the industry, outperforming 65.06% of the companies in the same industry.
CXW's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.56%, CXW is doing good in the industry, outperforming 69.88% of the companies in the same industry.
CXW's Operating Margin has declined in the last couple of years.
CXW has a Gross Margin of 23.38%. This is in the lower half of the industry: CXW underperforms 63.86% of its industry peers.
In the last couple of years the Gross Margin of CXW has declined.
Industry RankSector Rank
OM 9.56%
PM (TTM) 3.34%
GM 23.38%
OM growth 3Y-8.49%
OM growth 5Y-8.46%
PM growth 3Y7.8%
PM growth 5Y-16.29%
GM growth 3Y-4.39%
GM growth 5Y-4.19%

3

2. Health

2.1 Basic Checks

CXW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CXW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CXW has been reduced compared to 5 years ago.
CXW has a better debt/assets ratio than last year.

2.2 Solvency

CXW has an Altman-Z score of 1.37. This is a bad value and indicates that CXW is not financially healthy and even has some risk of bankruptcy.
CXW has a worse Altman-Z score (1.37) than 69.88% of its industry peers.
CXW has a debt to FCF ratio of 7.86. This is a slightly negative value and a sign of low solvency as CXW would need 7.86 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.86, CXW perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that CXW is somewhat dependend on debt financing.
The Debt to Equity ratio of CXW (0.68) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 7.86
Altman-Z 1.37
ROIC/WACC0.56
WACC8.96%

2.3 Liquidity

CXW has a Current Ratio of 1.17. 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 Current ratio of 1.17. This is in the lower half of the industry: CXW underperforms 67.47% of its industry peers.
A Quick Ratio of 1.17 indicates that CXW should not have too much problems paying its short term obligations.
The Quick ratio of CXW (1.17) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 1.17

4

3. Growth

3.1 Past

The earnings per share for CXW have decreased strongly by -43.43% in the last year.
CXW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.75% yearly.
CXW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.81%.
CXW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.65% yearly.
EPS 1Y (TTM)-43.43%
EPS 3Y6.39%
EPS 5Y-15.75%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)4.81%
Revenue growth 3Y-0.16%
Revenue growth 5Y0.65%
Sales Q2Q%9.32%

3.2 Future

The Earnings Per Share is expected to grow by 25.04% on average over the next years. This is a very strong growth
Based on estimates for the next years, CXW will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y-5.85%
EPS Next 2Y25.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.39%
Revenue Next 2Y3.21%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.89, the valuation of CXW can be described as expensive.
CXW's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.20. CXW is around the same levels.
A Price/Forward Earnings ratio of 16.33 indicates a correct valuation of CXW.
Based on the Price/Forward Earnings ratio, CXW is valued a bit cheaper than 68.67% of the companies in the same industry.
CXW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.02, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.89
Fwd PE 16.33

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CXW is valued a bit cheaper than 77.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CXW is valued a bit cheaper than 75.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.03
EV/EBITDA 8.52

4.3 Compensation for Growth

A more expensive valuation may be justified as CXW's earnings are expected to grow with 25.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.04%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

CXW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CORECIVIC INC

NYSE:CXW (5/29/2024, 3:15:00 PM)

After market: 15.06 0 (0%)

15.06

-0.11 (-0.73%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.68B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 26.89
Fwd PE 16.33
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.14%
ROE 4.48%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.56%
PM (TTM) 3.34%
GM 23.38%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.17
Quick Ratio 1.17
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-43.43%
EPS 3Y6.39%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.81%
Revenue growth 3Y-0.16%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y