CoreCivic, Inc. Fundamental Analysis (NYSE: CXW)
CoreCivic, Inc. (NYSE: CXW) shows strong financial fundamentals with a PE ratio of 2.07, profit margin of 54.60%, and ROE of 88.73%. The company generates $2.5B in annual revenue with strong year-over-year growth of 12.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CXW's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCXW demonstrates superior asset utilization.
Valuation Score
ExcellentCXW trades at attractive valuation levels.
Growth Score
ExcellentCXW delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCXW maintains a strong and stable balance sheet.
Profitability Score
ModerateCXW maintains healthy but balanced margins.
Key Financial Metrics
Is CXW Expensive or Cheap?
P/E Ratio
CXW trades at 2.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CXW's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values CoreCivic, Inc. at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.24 times EBITDA. This is generally considered low.
How Well Does CXW Make Money?
Net Profit Margin
For every $100 in sales, CoreCivic, Inc. keeps $54.60 as profit after all expenses.
Operating Margin
Core operations generate 11.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $88.73 in profit for every $100 of shareholder equity.
ROA
CoreCivic, Inc. generates $39.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CoreCivic, Inc. generates limited operating cash flow of $-251.21M, signaling weaker underlying cash strength.
Free Cash Flow
CoreCivic, Inc. generates weak or negative free cash flow of $-374.20M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.33 in free cash annually.
FCF Yield
CXW converts -14.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.89
vs 25 benchmark
ROA
Return on assets percentage
0.39
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CXW Stacks Against Its Sector Peers
| Metric | CXW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.07 | 27.44 | Better (Cheaper) |
| ROE | 88.73% | 1185.00% | Weak |
| Net Margin | 54.60% | -2.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.85 | Strong (Low Leverage) |
| Current Ratio | 2.41 | 22.12 | Strong Liquidity |
| ROA | 39.27% | -1355419.00% (disorted) | Strong |
CXW outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CoreCivic, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
135.18%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-38.86%
Industry Style: Cyclical, Value, Infrastructure
Declining