CoreCivic (CXW) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.25
• Revenue Growth: 3.43%
• EPS Growth: 4.64%
• Country: US
• Employees: 11,649
• Sector: Industrials
• Sector Strength: 70
• Industry: REIT - Specialty
• EPS (TTM): 0.62
• Shares Outstanding: 109,318,280
• 10 Day Avg. Volume: 1,123,995
• 30 Day Avg. Volume: 1,167,487
• PEG Ratio: 7.46
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.11
• Price to Cash Flow (P/CF): 13.90
• P/FCF Ratio: 17.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.00
• Price Target Upside: 53.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

CoreCivic's overall score reflects a balance of moderate financial performance, positive technical indicators, and optimistic earnings guidance. However, valuation concerns and challenges in maintaining federal revenue temper the score. The company is positioned for growth, but must navigate financial and operational challenges to realize its potential.

CoreCivic Business Overview & Revenue Model

Company Description

CoreCivic, Inc. owns and operates partnership correctional, detention, and residential reentry facilities in the United States. It operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. Its correctional, detention, and residential reentry facilities offer rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment. As of December 31, 2021, the company owned and operated 46 correctional and detention facilities, 26 residential reentry centers, and 10 properties for lease. The company was founded in 1983 and is based in Brentwood, Tennessee.

How the Company Makes Money

CoreCivic makes money primarily through contracts with government agencies for the management and operation of correctional and detention facilities. Revenue is generated through long-term contracts where the company is paid a per diem rate per inmate housed at its facilities. Additionally, CoreCivic earns income from its real estate segment by leasing facilities to government agencies, providing a stable and recurring revenue stream. The company's financial performance is influenced by factors such as occupancy rates, contract renewals, and government policies regarding incarceration and detention. CoreCivic also collaborates with various federal, state, and local agencies to ensure compliance with regulatory standards, further solidifying its role as a key player in the corrections and detention management industry.

CoreCivic Financial Statement Overview

Summary

CoreCivic displays mixed financial performance. Revenue growth and improved operational margins are positive, but the low return on equity and disappearance of operating cash flow raise concerns. The elimination of debt reduces financial risk, but there is a need to enhance profitability and cash flow consistency.

Income Statement

CoreCivic has demonstrated moderate growth in its revenue with a 3.43% increase in 2024 compared to 2023. The gross profit margin was high at 100%, suggesting a possible data inconsistency since gross profit equaled total revenue. The EBIT margin improved significantly from 2023 to 2024, indicating better operational efficiency. However, the net profit margin was relatively low due to modest net income, requiring attention to cost management.

Balance Sheet

CoreCivic's balance sheet reflects a stable equity position with an equity ratio of 50.9% in 2024, indicating a balanced capital structure. The company has eliminated its debt, significantly reducing financial risk. However, the company’s return on equity is relatively low at 4.61%, suggesting limited efficiency in generating profits from shareholders' equity.

Cash Flow

The cash flow statement indicates a concerning trend with operating cash flow dropping to zero in 2024, which could impact liquidity. The previous year showed a stable free cash flow, but the sudden drop points to potential cash management issues. The absence of data for several cash flow metrics limits further analysis.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.96B	1.90B	1.85B	1.86B	1.91B
	Gross Profit
468.29M	306.89M	431.54M	525.55M	499.11M
	EBIT
316.21M	170.81M	168.84M	189.37M	217.29M
	EBITDA
287.39M	296.10M	389.08M	316.38M	293.88M
	Net Income Common Stockholders
68.87M	67.59M	122.32M	-51.90M	55.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.49M	121.84M	149.40M	299.64M	113.22M
	Total Assets
2.93B	3.11B	3.24B	3.50B	3.71B
	Total Debt
1.01B	1.21B	1.25B	1.53B	1.79B
	Net Debt
905.38M	1.09B	1.10B	1.23B	1.67B
	Total Liabilities
1.44B	1.63B	1.81B	2.13B	2.30B
	Stockholders Equity
1.49B	1.48B	1.43B	1.37B	1.39B
Cash Flow		Free Cash Flow
197.98M	161.65M	72.19M	182.35M	271.74M
	Operating Cash Flow
269.15M	231.90M	153.58M	263.23M	355.53M
	Investing Cash Flow
-53.82M	-58.87M	73.04M	238.42M	12.97M
	Financing Cash Flow
-222.18M	-206.24M	-375.16M	-327.71M	-350.82M

CoreCivic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXW, the sentiment is Positive. The current price of 21.48 is above the 20-day moving average (MA) of 20.29, above the 50-day MA of 19.47, and above the 200-day MA of 17.26, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 55.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXW.

CoreCivic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPR	74 Outperform	$3.52B	28.82	6.11%	7.26%	-1.01%	-18.46%
FPI	72 Outperform	$474.77M	9.98	11.91%	2.38%	1.32%	108.94%
PCH	70 Outperform	$3.07B	141.28	1.04%	4.62%	3.71%	-64.41%
OUT	65 Neutral	$2.43B	9.39	34.53%	6.29%	0.57%	―
UNIT	65 Neutral	$1.05B	11.17	-3.72%	13.95%	1.49%	―
CXW	64 Neutral	$2.35B	34.63	4.64%	―	3.43%	4.64%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%

CoreCivic Corporate Events

CoreCivic Board Member Anne Mariucci Steps Down

On February 27, 2025, Anne L. Mariucci announced her decision not to seek re-election to CoreCivic’s Board of Directors, citing a desire to focus on other professional commitments. Her resignation will take effect at the company’s 2025 Annual Meeting, leading to a reduction in the Board’s size from eleven to ten members.