Last Updated: 14 Nov 2024
Executive Summary
CoreCivic Inc. (CXW) is a real estate investment trust (REIT) that owns and operates partnership correctional, detention, and residential reentry facilities in the United States. As of the latest market data, CXW is trading at $21.52, with a market capitalization of $2.44 billion. The company has a strong financial performance, with a trailing price-to-earnings (PE) ratio of 32.61 and a forward PE of 30.77. Analysts are generally positive on the stock, with 1 Buy recommendation and 3 Hold recommendations.
Company Overview
CoreCivic Inc. was founded in 1983 and is headquartered in Brentwood, Tennessee. The company owns and operates over 100 facilities in 20 states, with a total capacity of over 80,000 inmates. CoreCivic provides a range of services to its government partners, including housing, food, medical care, and education.
Fundamental Analysis
CoreCivic Inc. has a strong financial performance. The company's revenue has grown steadily in recent years, from $1.7 billion in 2017 to $1.97 billion in 2022. Net income has also increased, from $210 million in 2017 to $244 million in 2022. The company's profit margin is 3.85%, and its operating margin is 9.63%.
CoreCivic Inc. has a strong balance sheet. The company's total debt is $2.2 billion, and its cash and equivalents are $300 million. The company's debt-to-equity ratio is 0.73, which is considered to be a moderate level of debt.
Technical Analysis
CoreCivic Inc. is currently trading in a range between $20 and $25. The stock's 50-day moving average is $14.23, and its 200-day moving average is $14.29. The stock's relative strength index (RSI) is 52.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, CoreCivic Inc. is likely to continue to trade in a range between $20 and $25. The stock's technical indicators do not suggest any major upside or downside potential in the near term.
Long Term Outlook
In the long term, CoreCivic Inc. is expected to continue to benefit from the growing demand for correctional services in the United States. The company's strong financial performance and its commitment to providing high-quality services to its government partners position it well for continued growth in the future.
Analyst Recommendations
Analysts are generally positive on CoreCivic Inc. One analyst has a Buy recommendation on the stock, while three analysts have Hold recommendations. The average analyst price target is $24.2, which represents a potential upside of 12.5% from the current price.
