CORECIVIC INC (CXW) Stock Fundamental Analysis
NYSE:CXW - New York Stock Exchange, Inc. - US21871N1019 - Common Stock - Currency: USD
CXW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. CXW has an average financial health and profitability rating. 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.
CXW had a positive operating cash flow in the past year.
Of the past 5 years CXW 4 years were profitable.
In the past 5 years CXW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.81%, CXW is in line with its industry, outperforming 57.83% of the companies in the same industry.
CXW has a Return On Equity of 5.72%. This is comparable to the rest of the industry: CXW outperforms 57.83% of its industry peers.
CXW has a Return On Invested Capital (4.81%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CXW is significantly below the industry average of 11.67%.
The 3 year average ROIC (4.72%) for CXW is below the current ROIC(4.81%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 4.33%, CXW is doing good in the industry, outperforming 61.45% of the companies in the same industry.
CXW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.29%, CXW is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
CXW's Operating Margin has declined in the last couple of years.
CXW's Gross Margin of 23.57% is on the low side compared to the rest of the industry. CXW is outperformed by 66.27% of its industry peers.
CXW's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CXW is destroying value.
The number of shares outstanding for CXW has been reduced compared to 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 1.76. This is a bad value and indicates that CXW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, CXW is doing worse than 62.65% of the companies in the same industry.
CXW has a debt to FCF ratio of 6.22. This is a slightly negative value and a sign of low solvency as CXW would need 6.22 years to pay back of all of its debts.
CXW has a Debt to FCF ratio of 6.22. This is in the better half of the industry: CXW outperforms 65.06% of its industry peers.
CXW has a Debt/Equity ratio of 0.66. This is a neutral value indicating CXW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, CXW perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.58
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.55 indicates that CXW should not have too much problems paying its short term obligations.
CXW has a Current ratio of 1.55. This is comparable to the rest of the industry: CXW outperforms 49.40% of its industry peers.
A Quick Ratio of 1.55 indicates that CXW should not have too much problems paying its short term obligations.
The Quick ratio of CXW (1.55) is better than 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.71% 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 0.53% in the last year.
Measured over the past years, CXW shows a decrease in Revenue. The Revenue has been decreasing by -0.19% on average per year.
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
The Earnings Per Share is expected to grow by 57.07% on average over the next years. This is a very strong growth
Based on estimates for the next years, CXW will show a quite strong growth in Revenue. The Revenue will grow by 9.05% on average per year.
EPS Next Y59.94%
EPS Next 2Y57.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.98%
Revenue Next 2Y9.05%
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
The Price/Earnings ratio is 28.87, which means the current valuation is very expensive for CXW.
CXW's Price/Earnings ratio is in line with the industry average.
CXW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 14.58 indicates a correct valuation of CXW.
CXW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CXW is cheaper than 75.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CXW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CXW is valued a bit cheaper than 66.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CXW is valued a bit cheaper than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | 10.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CXW's earnings are expected to grow with 57.07% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y57.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CXW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.94
-0.29 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.53%
Inst Owner Change0%
Ins Owners1.91%
Ins Owner Change8.79%
Market Cap2.39B
Analysts82.22
Price Target32.13 (46.44%)
Short Float %2.8%
Short Ratio3.02
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)3.28%
PT rev (3m)12.1%
EPS NQ rev (1m)-4.21%
EPS NQ rev (3m)20.45%
EPS NY rev (1m)15.44%
EPS NY rev (3m)38.04%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 14.58 | ||
| P/S | 1.23 | ||
| P/FCF | 15.15 | ||
| P/OCF | 9.84 | ||
| P/B | 1.62 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 10.83 |
EPS(TTM)0.76
EY3.46%
EPS(NY)1.5
Fwd EY6.86%
FCF(TTM)1.45
FCFY6.6%
OCF(TTM)2.23
OCFY10.16%
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 | 1.76 |
F-Score9
WACC8.25%
ROIC/WACC0.58
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 Y59.94%
EPS Next 2Y57.07%
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 Year4.98%
Revenue Next 2Y9.05%
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%