📊 CXW Key Takeaways
Is CoreCivic, Inc. (CXW) a Good Investment?
CoreCivic exhibits deteriorating operational quality with 12.7% revenue growth failing to translate into earnings expansion (net income flat YoY) and negative free cash flow of -$6.9M, indicating unsustainable business dynamics. High leverage (0.99x debt/equity) combined with weak profitability metrics (6.2% net margin, 2.7% ROE) and marginal interest coverage (3.0x) creates financial stress that threatens long-term sustainability, particularly problematic for a REIT structure dependent on cash generation.
CoreCivic shows improving top-line momentum, with revenue up 12.7% year over year and positive operating and free cash flow, which supports a fundamentally stable base. However, profit conversion remains modest, net income was flat despite higher revenue, and interest coverage of 2.5x suggests leverage is still constraining earnings quality. Overall, the fundamentals look resilient but not strong enough to justify a more aggressive rating without better margin expansion and stronger cash generation.
CoreCivic, Inc. Key Strengths (CXW)
- Strong revenue growth of 12.7% YoY demonstrates operational scale expansion
- Healthy short-term liquidity with current ratio of 2.44x and $209.7M cash position
- Significant asset base of $3.4B provides operational foundation
- Revenue growth is solid at 12.7% year over year, indicating improving demand or utilization.
- Liquidity is healthy, with a 1.66x current ratio and positive operating cash flow of $194.59M.
- Balance sheet leverage is manageable relative to equity, with debt-to-equity of 0.86x and positive profitability across ROE and ROA.
CXW Stock Risks: CoreCivic, Inc. Investment Risks
- Negative free cash flow of -$6.9M is unsustainable and violates REIT cash distribution requirements
- Net income stagnation despite revenue growth indicates margin compression and operational deterioration
- High leverage at 0.99x debt/equity with only 3.0x interest coverage limits financial flexibility
- Critically low profitability metrics with 6.2% net margin and 2.7% ROE suggest poor capital efficiency
- Operating cash flow of $13.8M is inadequate relative to $20.7M capital expenditures
- Net income was flat despite strong revenue growth, suggesting cost pressure or limited operating leverage.
- Free cash flow is thin at $52.79M and a 2.4% FCF margin, leaving limited flexibility after capital spending.
- Interest coverage of 2.5x is relatively weak and makes earnings more sensitive to borrowing costs or operating setbacks.
Key Metrics to Watch
- Free cash flow trajectory and return to positive generation
- Operating margin trend and net income growth reacceleration
- Debt/equity ratio and interest coverage movement
- Operating cash flow growth relative to revenue growth
- Operating margin and net margin progression
- Free cash flow growth relative to capital expenditures and interest expense
CoreCivic, Inc. (CXW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.44x current ratio provides a solid financial cushion.
CXW Profit Margin, ROE & Profitability Analysis
CXW vs Real Estate Sector: How CoreCivic, Inc. Compares
How CoreCivic, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CoreCivic, Inc. Stock Overvalued? CXW Valuation Analysis 2026
Based on fundamental analysis, CoreCivic, Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CoreCivic, Inc. Balance Sheet: CXW Debt, Cash & Liquidity
CXW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CoreCivic, Inc.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.59 reflects profitable operations.
CXW Revenue Growth, EPS Growth & YoY Performance
CXW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $488.6M | $25.1M | $0.23 |
| Q3 2025 | $491.6M | $9.5M | $0.19 |
| Q2 2025 | $490.1M | $9.5M | $0.17 |
| Q1 2025 | $488.6M | $9.5M | $0.08 |
| Q3 2024 | $483.7M | $9.5M | $0.12 |
| Q2 2024 | $463.7M | $9.5M | $0.13 |
| Q1 2024 | $458.0M | $9.5M | $0.08 |
| Q3 2023 | $464.2M | $10.6M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CoreCivic, Inc. Dividends, Buybacks & Capital Allocation
CXW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CoreCivic, Inc. (CIK: 0001070985)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CXW
What is the AI rating for CXW?
CoreCivic, Inc. (CXW) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CXW's key strengths?
Claude: Strong revenue growth of 12.7% YoY demonstrates operational scale expansion. Healthy short-term liquidity with current ratio of 2.44x and $209.7M cash position. ChatGPT: Revenue growth is solid at 12.7% year over year, indicating improving demand or utilization.. Liquidity is healthy, with a 1.66x current ratio and positive operating cash flow of $194.59M..
What are the risks of investing in CXW?
Claude: Negative free cash flow of -$6.9M is unsustainable and violates REIT cash distribution requirements. Net income stagnation despite revenue growth indicates margin compression and operational deterioration. ChatGPT: Net income was flat despite strong revenue growth, suggesting cost pressure or limited operating leverage.. Free cash flow is thin at $52.79M and a 2.4% FCF margin, leaving limited flexibility after capital spending..
What is CXW's revenue and growth?
CoreCivic, Inc. reported revenue of $614.7M.
Does CXW pay dividends?
CoreCivic, Inc. pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.
Where can I find CXW SEC filings?
Official SEC filings for CoreCivic, Inc. (CIK: 0001070985) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CXW's EPS?
CoreCivic, Inc. has a diluted EPS of $0.38.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CXW's fundamental grade?
Based on our AI fundamental analysis in June 2026, CoreCivic, Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CXW stock overvalued or undervalued?
Valuation metrics for CXW: ROE of 2.7% (sector avg: 8%), net margin of 6.2% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is CXW's AI grade for 2026?
Our dual AI analysis gives CoreCivic, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CXW's free cash flow?
CoreCivic, Inc.'s operating cash flow is $13.8M, with capital expenditures of $20.7M. FCF margin is -1.1%.
How does CXW compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 6.2% (avg: 20%), ROE 2.7% (avg: 8%), current ratio 2.44 (avg: 1.5).