Company Overview
CoreCivic, Inc. owns and operates partnership correctional, detention, and residential reentry facilities throughout the United States, serving government partners with a comprehensive range of solutions across its operational segments. The company functions within the Industrials sector and specifically the Security & Protection Services industry, a classification that denotes its primary revenue stream derives from providing essential infrastructure and personnel for the correctional system. On a valuation basis, the enterprise holds a market capitalization of $2.04B, while its trailing twelve-month revenue stands at $2.21B supported by an workforce of 13651 employees. These financial dimensions indicate that CoreCivic maintains a significant operational footprint within its specific niche, possessing a substantial revenue base relative to its peers in the security services space.
Financial Health
The company reported a trailing twelve-month revenue of $2.21B and a net income of $116.50M, while generating an EBITDA of $350.97M, revealing a substantial gap between operating cash earnings and net income attributable to significant tax obligations and non-operating expenses. The free cash flow for the period was recorded at $-1,173,000, indicating that despite positive EBITDA, the company's capital expenditures or working capital requirements currently exceed its operating cash generation, limiting immediate financial flexibility for share repurchases or aggressive expansion without external financing. Gross margin is calculated at 23.5%, operating margin sits at 9.2%, and profit margin is 5.3%, suggesting that while the company retains nearly a quarter of revenue after direct costs, significant overhead and indirect costs consume the majority of the remaining earnings. The balance sheet shows a cash position of $97.93M against total debt of $1.35B, resulting in a debt-to-equity ratio of 96.15, which characterizes the company as highly leveraged with obligations nearly equivalent to its shareholders' equity. Liquidity analysis reveals a current ratio of 1.66, providing a comfortable buffer that suggests the company can meet its short-term liabilities with its available current assets. Return on equity is 8.0% and return on assets is 4.5%, metrics that demonstrate how effectively management utilizes shareholder capital and total assets to generate profitability, though the returns are moderate relative to the high leverage levels present.
Valuation Assessment
The trailing P/E ratio is 18.02 while the forward P/E is 8.32, a significant divergence that implies the market expects earnings to more than double in the coming year, potentially driven by anticipated cost reductions or volume increases in contract corrections. The price-to-book ratio is 1.39, indicating that the market values the company at approximately 39% above its book value, which may reflect intangible assets like contracts or franchise value not captured on the balance sheet. Alternative valuation metrics show a price-to-sales ratio of 0.92 and an EV/EBITDA of 8.99, suggesting the stock is trading at a relatively low multiple of sales and enterprise value relative to earnings before interest, taxes, depreciation, and amortization compared to historical averages for the sector. The 52-week high is $23.54 and the 52-week low is $15.74, meaning the current trading price sits significantly below the 52-week high but above the 52-week low, reflecting recent volatility or a correction from earlier peaks. The beta value is 0.66, which indicates that the stock exhibits lower price volatility relative to the broader market, moving less aggressively than the S&P 500 during periods of market stress or rally.
Growth & Income
Revenue growth year-over-year is 26.0% and earnings growth year-over-year is 42.4%, demonstrating that earnings are expanding at a significantly faster rate than revenue, which often implies improving operating leverage, cost efficiencies, or a mix shift toward higher-margin services within the safety segment. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning all generated earnings are retained within the business to fund operations, reduce debt, or invest in facility upgrades rather than being distributed to shareholders. This reinvestment strategy aligns with the company's need to maintain high capital expenditure levels, as suggested by the negative free cash flow, prioritizing balance sheet strength and operational continuity over immediate income distribution. Overall, the growth and income profile is defined by rapid earnings acceleration and a zero-dividend policy, positioning the stock as a growth-oriented value play reliant on future earnings expansion rather than current yield.