CORECIVIC INC (CXW) Stock Fundamental Analysis
NYSE:CXW - New York Stock Exchange, Inc. - US21871N1019 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CXW. CXW was compared to 83 industry peers in the Commercial Services & Supplies industry. CXW has only an average score on both its financial health and profitability. CXW has a decent growth rate and is not valued too expensively.
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.
CXW had positive earnings in 4 of the past 5 years.
CXW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CXW has a Return On Assets of 2.35%. This is comparable to the rest of the industry: CXW outperforms 56.63% of its industry peers.
CXW's Return On Equity of 4.61% is in line compared to the rest of the industry. CXW outperforms 57.83% of its industry peers.
CXW has a Return On Invested Capital (5.17%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CXW is significantly below the industry average of 10.68%.
The last Return On Invested Capital (5.17%) for CXW is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 4.61% | ||
| ROIC | 5.17% |
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
CXW's Profit Margin of 3.51% is in line compared to the rest of the industry. CXW outperforms 59.04% of its industry peers.
In the last couple of years the Profit Margin of CXW has declined.
The Operating Margin of CXW (9.59%) is better than 68.67% of its industry peers.
In the last couple of years the Operating Margin of CXW has declined.
The Gross Margin of CXW (23.87%) is worse than 66.27% of its industry peers.
In the last couple of years the Gross Margin of CXW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.59% | ||
| PM (TTM) | 3.51% | ||
| GM | 23.87% |
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
CXW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for CXW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that CXW is not a great score, but indicates only limited risk for bankruptcy at the moment.
CXW has a Altman-Z score of 1.82. This is comparable to the rest of the industry: CXW outperforms 40.96% of its industry peers.
The Debt to FCF ratio of CXW is 4.98, which is a neutral value as it means it would take CXW, 4.98 years of fcf income to pay off all of its debts.
CXW has a better Debt to FCF ratio (4.98) than 69.88% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that CXW is somewhat dependend on debt financing.
The Debt to Equity ratio of CXW (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.64
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.57 indicates that CXW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, CXW is in line with its industry, outperforming 51.81% of the companies in the same industry.
CXW has a Quick Ratio of 1.57. 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 1.57. This is in the better half of the industry: CXW outperforms 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.00% over the past year.
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 3.43% in the last year.
The Revenue has been decreasing by -0.19% on average over the past years.
EPS 1Y (TTM)75%
EPS 3Y25.31%
EPS 5Y-17.17%
EPS Q2Q%462.5%
Revenue 1Y (TTM)3.43%
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 51.42% yearly.
CXW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.09% yearly.
EPS Next Y21%
EPS Next 2Y51.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.47%
Revenue Next 2Y9.09%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.16, the valuation of CXW can be described as rather expensive.
62.65% of the companies in the same industry are more expensive than CXW, based on the Price/Earnings ratio.
CXW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.95.
CXW is valuated correctly with a Price/Forward Earnings ratio of 15.53.
Based on the Price/Forward Earnings ratio, CXW is valued a bit cheaper than the industry average as 73.49% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.99. CXW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 15.53 |
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 68.67% 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 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CXW's earnings are expected to grow with 51.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y51.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CXW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.72
+0.08 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners91.92%
Inst Owner Change-0.33%
Ins Owners1.74%
Ins Owner Change8.8%
Market Cap2.37B
Analysts82.5
Price Target31.11 (43.23%)
Short Float %3.01%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-76.74%
DP0.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)91.04%
Min EPS beat(2)68.32%
Max EPS beat(2)113.77%
EPS beat(4)3
Avg EPS beat(4)41.6%
Min EPS beat(4)-47.19%
Max EPS beat(4)113.77%
EPS beat(8)5
Avg EPS beat(8)21.24%
EPS beat(12)7
Avg EPS beat(12)12.06%
EPS beat(16)9
Avg EPS beat(16)-5.12%
Revenue beat(2)2
Avg Revenue beat(2)2.8%
Min Revenue beat(2)2.02%
Max Revenue beat(2)3.59%
Revenue beat(4)4
Avg Revenue beat(4)2.51%
Min Revenue beat(4)0.7%
Max Revenue beat(4)3.73%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)5
Avg Revenue beat(12)-0.17%
Revenue beat(16)5
Avg Revenue beat(16)-0.66%
PT rev (1m)8.54%
PT rev (3m)15.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.65%
EPS NY rev (1m)4.43%
EPS NY rev (3m)-10.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.21 | ||
| P/FCF | 11.99 | ||
| P/OCF | 8.82 | ||
| P/B | 1.59 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 10.28 |
EPS(TTM)0.98
EY4.51%
EPS(NY)1.4
Fwd EY6.44%
FCF(TTM)1.81
FCFY8.34%
OCF(TTM)2.46
OCFY11.34%
SpS17.94
BVpS13.66
TBVpS13.62
PEG (NY)1.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 4.61% | ||
| ROCE | 7.11% | ||
| ROIC | 5.17% | ||
| ROICexc | 5.39% | ||
| ROICexgc | 5.4% | ||
| OM | 9.59% | ||
| PM (TTM) | 3.51% | ||
| GM | 23.87% | ||
| FCFM | 10.09% |
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-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 55.6% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 85.12% | ||
| Profit Quality | 287.48% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.82 |
F-Score8
WACC8.02%
ROIC/WACC0.64
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)75%
EPS 3Y25.31%
EPS 5Y-17.17%
EPS Q2Q%462.5%
EPS Next Y21%
EPS Next 2Y51.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.43%
Revenue growth 3Y1.74%
Revenue growth 5Y-0.19%
Sales Q2Q%-2.41%
Revenue Next Year4.47%
Revenue Next 2Y9.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.18%
EBIT growth 3Y-9.64%
EBIT growth 5Y-8.05%
EBIT Next Year81.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.48%
FCF growth 3Y2.78%
FCF growth 5Y4.21%
OCF growth 1Y16.06%
OCF growth 3Y0.74%
OCF growth 5Y-5.35%