NYSE:CXW

Stock Analysis Report

Executive Summary

The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways.

Rewards

Trading at 72.3% below its fair value

Earnings grew by 18.1% over the past year

Risk Analysis

Earnings have declined by -4.9% per year over past 5 years

Unstable dividend track record



Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has CoreCivic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CXW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

CXW

-0.06%

US REITs

1.1%

US Market


1 Year Return

-29.7%

CXW

13.2%

US REITs

17.8%

US Market

Return vs Industry: CXW underperformed the US REITs industry which returned 13.2% over the past year.

Return vs Market: CXW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CXWIndustryMarket
7 Day2.1%-0.06%1.1%
30 Day-5.5%0.9%1.4%
90 Day-16.6%-0.2%3.9%
1 Year-22.9%-29.7%17.9%13.2%20.3%17.8%
3 Year-24.2%-39.9%34.4%17.7%44.8%35.4%
5 Year-38.1%-57.8%56.5%24.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is CoreCivic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CoreCivic undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CXW ($15.26) is trading below our estimate of fair value ($55.07)

Significantly Below Fair Value: CXW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CXW is good value based on its PE Ratio (9.6x) compared to the REITs industry average (38.6x).

PE vs Market: CXW is good value based on its PE Ratio (9.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CXW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CXW is good value based on its PB Ratio (1.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is CoreCivic forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.5%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CoreCivic has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CoreCivic performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CXW has high quality earnings.

Growing Profit Margin: CXW's current net profit margins (9.6%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: CXW's earnings have declined by -4.9% per year over the past 5 years.

Accelerating Growth: CXW's earnings growth over the past year (18.1%) exceeds its 5-year average (-4.9% per year).

Earnings vs Industry: CXW earnings growth over the past year (18.1%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: CXW's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CoreCivic's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CXW has a high level of physical assets or inventory.

Debt Coverage by Assets: CXW's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: CXW's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CXW has a sufficient allowance for bad loans.

Low Risk Liabilities: CXW reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CXW has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CXW has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CXW has an appropriate level of bad loans.


Next Steps

Dividend

What is CoreCivic's current dividend yield, its reliability and sustainability?

11.53%

Current Dividend Yield


Dividend Yield vs Market

company11.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CXW's dividend (11.53%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CXW's dividend (11.53%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: CXW has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CXW's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.5%), CXW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of CoreCivic's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Damon Hininger (49yo)

10.2yrs

Tenure

US$4,117,669

Compensation

Mr. Damon T. Hininger serves as the Chief Executive Officer and President at CCA TRS, LLC. Mr. Hininger has been the Chief Executive Officer and Director of CoreCivic, Inc. (formerly known as Corrections C ...


CEO Compensation Analysis

Compensation vs Market: Damon's total compensation ($USD4.12M) is about average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Damon's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.1yrs

Average Tenure

49yo

Average Age

Experienced Management: CXW's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

64yo

Average Age

Experienced Board: CXW's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$134,15711 Sep 19
Thurgood Marshall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,600
Max PriceUS$17.65
SellUS$138,96001 Apr 19
Thurgood Marshall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,200
Max PriceUS$19.30
SellUS$439,64101 Mar 19
Damon Hininger
EntityIndividual
Role
Chief Executive Officer
President
Shares21,251
Max PriceUS$20.69

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dave Garfinkle (51yo)

    Executive VP & CFO

    • Tenure: 5.6yrs
    • Compensation: US$1.98m
  • Tony Grande (49yo)

    Executive VP & Chief Development Officer

    • Tenure: 12.3yrs
    • Compensation: US$2.02m
  • Patrick Swindle (44yo)

    Executive VP & Chief Corrections Officer

    • Tenure: 1.9yrs
    • Compensation: US$1.86m
  • Damon Hininger (49yo)

    President

    • Tenure: 10.2yrs
    • Compensation: US$4.12m
  • Lucibeth Mayberry (47yo)

    Executive Vice President of Real Estate

    • Tenure: 4.6yrs
    • Compensation: US$1.87m
  • John Pfeiffer

    Chief Information Officer & VP of Technology

    • Tenure: 17.3yrs
  • Steve Owen

    Managing Director of Communications

    • Tenure: 0yrs
  • Cameron Hopewell

    Managing Director of Investor Relations

    • Tenure: 0yrs
  • Ben Elrod

    Vice President of Compensation

    • Tenure: 2.5yrs
  • Cole Carter (50yo)

    Senior VP

    • Tenure: 1.4yrs

Board Members

  • Bob Dennis (65yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$209.01k
  • John Prann (68yo)

    Independent Director

    • Tenure: 19yrs
    • Compensation: US$229.01k
  • Charles Overby (73yo)

    Independent Director

    • Tenure: 18yrs
    • Compensation: US$237.01k
  • Thurgood Marshall (63yo)

    Independent Director

    • Tenure: 17yrs
    • Compensation: US$237.01k
  • Anne Mariucci (61yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$218.16k
  • Donna Alvarado (70yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$227.01k
  • Mark Emkes (66yo)

    Independent Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$314.01k
  • Damon Hininger (49yo)

    President

    • Tenure: 10.2yrs
    • Compensation: US$4.12m
  • Harley Lappin (63yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$2.16m
  • Stacia Hylton (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$235.01k

Company Information

CoreCivic, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CoreCivic, Inc.
  • Ticker: CXW
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$1.830b
  • Shares outstanding: 119.10m
  • Website: https://www.corecivic.com

Number of Employees


Location

  • CoreCivic, Inc.
  • 5501 Virginia Way
  • Suite 110
  • Brentwood
  • Tennessee
  • 37027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CXWNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 1997
PSRADB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1997

Biography

The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:36
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.