Descripción de la empresa
CoreCivic, Inc. operates within the Industrials sector, specifically focusing on Security & Protection Services, where it owns and manages a network of partnership correctional, detention, and residential reentry facilities across the United States. The enterprise's operational scope is divided into three distinct segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties, which collectively deliver various solutions to government partners in the correctional space. As of the latest reporting period, the company maintains a market capitalization of $1.98 billion, supported by an annual revenue stream of $2.21 billion and a workforce comprising 13,651 employees. These valuation and revenue figures indicate that CoreCivic is a significant entity within the private correctional services industry, possessing substantial scale that allows it to secure contracts with multiple governmental entities while managing a large operational footprint. The breadth of its employee base relative to its revenue suggests a labor-intensive business model typical of facility management, yet the $1.98 billion market cap reflects investor confidence in the stability and recurring nature of its government contracts within the security and protection services landscape.
Salud financiera
The company reported a revenue of $2.21 billion for the trailing twelve months, generating a net income of $116.50 million and an EBITDA of $350.97 million. The significant gap between the $2.21 billion in revenue and the $116.50 million in net income reveals a substantial cost structure, where operating expenses, including labor and overhead, consume approximately 94.7% of total revenue before reaching the bottom line. However, the EBITDA figure of $350.97 million demonstrates that the company retains significant cash flow from operations before debt service and non-cash charges, highlighting the underlying profitability of its service delivery model. Despite positive earnings, the free cash flow stands at $-1,173,000, indicating that capital expenditures and working capital requirements currently exceed the cash generated from operations, which limits immediate financial flexibility for share buybacks or aggressive expansion without external financing. The gross margin is reported at 23.5%, while the operating margin sits at 9.2% and the profit margin is 5.3%; these figures indicate that for every dollar of revenue, only a fraction remains as net profit after all costs, including the high fixed costs associated with maintaining correctional facilities. On the balance sheet, the company holds $97.93 million in cash against total debt of $1.35 billion, resulting in a debt-to-equity ratio of 96.15, which signifies a highly leveraged position where debt obligations are nearly equal to shareholders' equity. The current ratio of 1.66 suggests that the company possesses sufficient current assets to cover its short-term liabilities, providing a reasonable buffer against immediate liquidity pressures despite the heavy debt load. Furthermore, the Return on Equity of 8.0% and Return on Assets of 4.5% indicate that management is generating moderate returns on the capital deployed, though the low ROA relative to the high debt-to-equity ratio implies that a large portion of earnings is consumed by interest expenses rather than reinvested or distributed.
Evaluación de valoración
Valuation metrics for CoreCivic show a Trailing Twelve Month P/E Ratio of 18.50 and a Forward P/E of 9.68, implying that the market expects a significant increase in future earnings relative to current levels. The substantial difference between the trailing and forward P/E ratios suggests that analysts anticipate earnings growth that will drive the stock price higher in the coming periods, compressing the multiple as profitability improves. The price-to-book ratio is 1.42, indicating that the market values the company at 42% above its book value, which may reflect the intangible value of its government contracts and established operational infrastructure rather than just its tangible assets. Alternative valuation measures such as the price-to-sales ratio of 0.89 and the EV/EBITDA of 9.13 suggest that the stock is priced conservatively relative to its sales and enterprise value adjusted earnings, offering a different perspective than the P/E multiple alone. The stock has traded between a 52-week low of $15.74 and a 52-week high of $23.54, and assuming the current market context aligns with the provided data points, the trading range highlights the volatility inherent in the sector. The beta of 0.61 indicates that the stock's price volatility is significantly lower than the broader market, meaning it tends to move less dramatically than the S&P 500 during periods of market stress or rally.
Growth & Income
CoreCivic has demonstrated robust expansion with revenue growth of 26.0% year-over-year and earnings growth of 42.4% year-over-year, showing that earnings are growing at a pace nearly double that of revenue. This divergence implies that the company is benefiting from economies of scale, margin expansion, or cost efficiencies that allow net income to accelerate faster than top-line sales growth. Regarding income distribution, the company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Consequently, the firm reinvests all of its earnings back into the business, likely funding capital expenditures required to maintain facilities and manage its negative free cash flow position rather than returning capital to shareholders. The overall growth and income profile presents a high-growth, no-dividend scenario typical of capital-intensive industrial firms that prioritize expanding their operational footprint and servicing government debt over providing immediate income to investors.