CoreCivic, Inc. (NYSE: CXW)

Sector: Industrials Industry: Security & Protection Services CIK: 0001070985
Market Cap 2.04 Bn
P/B 1.39
P/E 18.69
P/S 0.98
ROIC (Qtr) 5.77
Div Yield % 0.00
Rev 1y % (Qtr) 18.08
Total Debt (Qtr) 1.04 Bn
Debt/Equity (Qtr) 0.71
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About

Investment thesis

Bull case

  • Healthy cash reserves of 71.78M provide 4.85x coverage of short-term debt 14.79M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 3.10B provides 2.97x coverage of total debt 1.04B, indicating robust asset backing and low credit risk.
  • Tangible assets of 3.10B provide exceptional 305.63x coverage of deferred revenue 10.15M, showing strong service capability backing.
  • Operating cash flow of 234.24M provides strong 23.08x coverage of deferred revenue 10.15M, indicating service delivery capability.
  • Robust tangible asset base of 3.10B provides 22.61x coverage of working capital 137.20M, indicating strong operational backing.

Bear case

  • Operating cash flow of 234.24M barely covers its investment activities of (185.79M), with a coverage ratio of -1.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 234.24M provides thin coverage of dividend payments of (45000) with a -5205.42 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 71.78M provide limited coverage of acquisition spending of (73.36M), which is -0.98x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 206.16M show weak coverage of depreciation charges of 126.91M, with a 1.62 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 126.91M relative to operating cash flow of 234.24M, which is 0.54x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Consolidation Items Breakdown of Revenue (2024)

Peer comparison

Companies in the Security & Protection Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ALLE Allegion plc 14.00 Bn 21.75 3.44 1.98 Bn
2 MSA MSA Safety Inc 7.99 Bn 374.33 5.71 0.63 Bn
3 BCO Brinks Co 6.24 Bn 112.89 1.74 4.32 Bn
4 BRC Brady Corp 4.99 Bn 38.51 4.29 0.18 Bn
5 ADT ADT Inc. 4.95 Bn -9.23 1.68 7.81 Bn
6 CXW CoreCivic, Inc. 2.04 Bn 18.69 0.98 1.04 Bn
7 GEO Geo Group Inc 2.02 Bn 8.48 0.80 1.63 Bn
8 NSSC Napco Security Technologies, Inc 1.57 Bn 33.18 8.19 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.94 1.53
EV to Cash from Ops. EV/CFO 12.46 15.25
EV to Debt EV to Debt 2.80 44.60
EV to EBIT EV/EBIT 14.16 8.47
EV to EBITDA EV/EBITDA 8.90 14.35
EV to Free Cash Flow [EV/FCF] EV/FCF 24.63 28.03
EV to Market Cap EV to Market Cap 1.43 0.95
EV to Revenue EV/Rev 1.40 2.53
Price to Book Value [P/B] P/B 1.39 3.48
Price to Earnings [P/E] P/E 18.69 32.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2,427.56 106.48
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 25.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.91
Interest Coverage Int. cover (Qtr) 3.43 -11.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -98.39 -7.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -38.95 23.04
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -3.73
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 21.38 35.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.27 87.34
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.22 29.11
EBT Growth (1y) % EBT 1y % (Qtr) 41.07 41.98
EPS Growth (1y) % EPS 1y % (Qtr) 49.25 37.27
FCF Growth (1y) % FCF 1y % (Qtr) -38.87 -41.16
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.08 7.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.71
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.21 1.61
Current Ratio Curr Ratio (Qtr) 1.41 3.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.71 1.13
Interest Cover Ratio Int Coverage (Qtr) 3.43 -11.72
Times Interest Earned Times Interest Earned (Qtr) 3.43 -11.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.00 -5.57
EBIT Margin % EBIT Margin % (Qtr) 9.88 -15.45
EBT Margin % EBT Margin % (Qtr) 7.00 -14.45
Gross Margin % Gross Margin % (Qtr) 23.70 38.13
Net Profit Margin % Net Margin % (Qtr) 5.20 -16.17