NYSE:CXW

Stock Analysis Report

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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.


Snowflake Analysis

Very undervalued second-rate dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

CXW

-0.2%

US REITs

3.0%

US Market


1 Year Return

-51.5%

CXW

-9.1%

US REITs

15.8%

US Market

Return vs Industry: CXW underperformed the US REITs industry which returned -9.2% over the past year.

Return vs Market: CXW underperformed the US Market which returned 15.4% over the past year.


Shareholder returns

CXWIndustryMarket
7 Day-0.6%-0.2%3.0%
30 Day-4.7%3.9%6.0%
90 Day-29.1%8.6%16.4%
1 Year-47.0%-51.5%-5.4%-9.1%18.4%15.8%
3 Year-55.8%-65.6%17.6%3.6%44.8%35.4%
5 Year-59.2%-72.8%43.1%14.0%75.7%56.7%

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 ($8.74) is trading below our estimate of fair value ($33.04)

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 (7.2x) compared to the US REITs industry average (30.4x).

PE vs Market: CXW is good value based on its PE Ratio (7.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CXW is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CXW is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

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

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CXW's forecast earnings growth (17.8% per year) is above the savings rate (2.2%).

Earnings vs Market: CXW's earnings (17.8% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: CXW's earnings are forecast to grow, but not significantly.

Revenue vs Market: CXW's revenue is expected to decline over the next 3 years (-0.09% per year).

High Growth Revenue: CXW's revenue is forecast to decline over the next 3 years (-0.09% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CXW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CoreCivic performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CXW has high quality earnings.

Growing Profit Margin: CXW's current net profit margins (7.4%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: CXW's earnings have declined by 6.2% per year over the past 5 years.

Accelerating Growth: CXW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CXW had negative earnings growth (-19.4%) over the past year, making it difficult to compare to the REITs industry average (1.4%).


Return on Equity

High ROE: CXW's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is CoreCivic's financial position?


Financial Position Analysis

Short Term Liabilities: CXW's short term assets ($668.4M) exceed its short term liabilities ($293.9M).

Long Term Liabilities: CXW's short term assets ($668.4M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: CXW's debt to equity ratio (158.1%) is considered high.

Reducing Debt: CXW's debt to equity ratio has increased from 83.7% to 158.1% over the past 5 years.

Debt Coverage: CXW's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: CXW's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

20.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CXW's dividend (20.14%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CXW's dividend (20.14%) is in the top 25% of dividend payers in the US market (4.45%)


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: At its current payout ratio (80.1%), CXW's 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

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Damon Hininger (50 yo)

10.83yrs

Tenure

US$5,348,926

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 ($USD5.35M) is above average for companies of similar size in the US market ($USD3.09M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Damon Hininger
President10.83yrsUS$5.35m0.23%
$ 2.4m
David Garfinkle
Executive VP & CFO6.25yrsUS$2.22m0.12%
$ 1.3m
Anthony Grande
Executive VP & Chief Development Officer12.92yrsUS$2.28m0.086%
$ 903.9k
Lucibeth Mayberry
Executive Vice President of Real Estate5.25yrsUS$2.11m0.088%
$ 918.9k
Patrick Swindle
Executive VP & Chief Corrections Officer2.58yrsUS$2.11m0.042%
$ 438.1k
Harley Lappin
Director2.58yrsno data0.050%
$ 522.3k
John Pfeiffer
Chief Information Officer & VP of Technology18yrsno datano data
Cameron Hopewell
Managing Director of Investor Relationsno datano datano data
Ben Elrod
Vice President of Compensation3.17yrsno datano data
Cole Carter
Executive VP2.08yrsno data0.015%
$ 152.4k
Steve Owen
Managing Director of Communicationsno datano datano data
David Churchill
Senior VP & Chief Human Resources Officer1.25yrsno data0.036%
$ 377.8k

5.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: CXW's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Damon Hininger
President10.83yrsUS$5.35m0.23%
$ 2.4m
Harley Lappin
Director2.58yrsno data0.050%
$ 522.3k
Robert Dennis
Independent Director7.5yrsUS$220.99k0.028%
$ 291.1k
John Prann
Independent Director19.67yrsUS$241.99k0.042%
$ 439.5k
Charles Overby
Independent Director18.67yrsUS$251.99k0.040%
$ 415.0k
Thurgood Marshall
Independent Director17.67yrsUS$251.99k0.027%
$ 280.2k
Anne Mariucci
Independent Director8.67yrsUS$232.41k0.041%
$ 427.5k
Donna Alvarado
Independent Director16.67yrsUS$239.99k0.059%
$ 621.7k
Mark Emkes
Independent Chairman of the Board4.25yrsUS$326.98k0.054%
$ 569.2k
Devin Murphy
Independent Director1.75yrsUS$255.18k0.000070%
$ 731.9
Stacia Hylton
Independent Director4yrsUS$249.99k0.0082%
$ 85.7k

8.7yrs

Average Tenure

64yo

Average Age

Experienced Board: CXW's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.046b
  • Shares outstanding: 119.63m
  • 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 Analysis2020/08/06 23:53
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.