Bedrijfsoverzicht
CoreCivic, Inc. owns and operates a network of partnership correctional, detention, and residential reentry facilities throughout the United States, delivering essential incarceration and community management solutions to government entities. The company functions within the Industrials sector, specifically focusing on the Security & Protection Services industry, which characterizes its exposure to government contracting cycles and public safety demands. CoreCivic manages a substantial operational footprint supported by a workforce of 13,651 employees and holds a total market capitalization of $1.97 billion. With an annual revenue of $2.21 billion, these financial figures indicate that the company holds a significant position in the private prison and detention services market, managing a large-scale infrastructure that serves as a critical component of the US correctional system.
Financiële gezondheid
CoreCivic reported total revenue of $2.21 billion over the trailing twelve months, generating a net income of $116.50 million and an EBITDA of $350.97 million. The substantial gap between the $2.21 billion in revenue and the $116.50 million in net income reveals a cost structure where operating expenses, including facility maintenance, staffing, and overhead, consume approximately 94.7% of gross revenue before arriving at the bottom line. The company's free cash flow stands at -$1,173,000, indicating that capital expenditures or working capital requirements currently exceed operating cash generation, which limits immediate financial flexibility for share buybacks or aggressive expansion without external financing. Profitability is measured across three key margins: a gross margin of 23.5%, an operating margin of 9.2%, and a profit margin of 5.3%. These margin levels suggest that while the company retains a moderate portion of revenue after direct costs, operational inefficiencies or high fixed costs significantly compress the final profit retained by shareholders. On the balance sheet, the company holds $97.93 million in cash against a total debt load of $1.35 billion, resulting in a debt-to-equity ratio of 96.15. This leverage profile indicates a highly leveraged balance sheet where debt obligations are nearly equal to shareholder equity, reflecting a capital structure reliant on borrowing to finance its extensive physical assets. Liquidity is assessed via a current ratio of 1.66, which suggests the company maintains sufficient current assets to cover its short-term liabilities with a 66% buffer. Return metrics show a Return on Equity of 8.0% and a Return on Assets of 4.5%, revealing that management generates moderate returns on shareholders' invested capital but lower returns relative to the total asset base, likely due to the heavy asset nature of the correctional facilities.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is 18.44, while the forward P/E is projected at 9.65. This significant disparity between the trailing and forward multiples implies that the market expects earnings growth to accelerate substantially in the coming years, allowing the current stock price to justify higher future earnings rather than past performance. The price-to-book ratio stands at 1.42, indicating that the market values the company at a 42% premium over its net asset book value, reflecting confidence in the intangible value of its contracts and operational franchises. Alternative valuation metrics include a price-to-sales ratio of 0.89 and an EV/EBITDA of 9.12, which suggest the company trades at a reasonable multiple relative to its sales volume and enterprise earnings before interest, taxes, depreciation, and amortization. The stock has traded within a 52-week range bounded by a high of $23.54 and a low of $15.74, with the current market price situated at a specific point within this volatility band that reflects recent market sentiment adjustments. The beta value is 0.61, which indicates that the stock price exhibits lower volatility than the broader market, moving with less intensity during periods of overall market turbulence compared to the average equity.
Growth & Income
Revenue growth for the trailing twelve months stands at 26.0%, while earnings growth is significantly higher at 42.4% year-over-year. The fact that earnings are growing at a rate that outpaces revenue growth implies an improving operational efficiency or a favorable shift in cost structure that allows net income to expand faster than top-line sales. As a non-dividend payer, CoreCivic does not distribute a dividend yield or maintain a payout ratio, as indicated by the 0.0% payout ratio. Instead of returning cash to shareholders through dividends, the company retains its earnings to fund capital investments, reduce debt, or pursue organic growth initiatives within its correctional facilities segment. The overall growth and income profile is characterized by robust top-line expansion and accelerating profitability without reliance on dividend income, positioning the equity as a growth-oriented investment within the industrials sector.