📊 CXW Key Takeaways
Is CoreCivic, Inc. (CXW) a Good Investment?
CoreCivic demonstrates solid operational growth with 12.7% revenue expansion and improving earnings per share, supported by reasonable leverage and positive free cash flow generation. However, the company faces structural headwinds with low operating margins (7.1%), modest returns on equity (8.3%), and weak free cash flow conversion (2.4% FCF margin), limiting earnings quality and reinvestment capacity.
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.
Why Buy CoreCivic, Inc. Stock? CXW Key Strengths
- Strong revenue growth of 12.7% YoY indicates solid demand for correctional and detention services
- Healthy liquidity position with 1.66x current ratio and manageable debt-to-equity of 0.86x
- Positive free cash flow generation of $52.8M provides capacity for debt service and potential distributions
- Interest coverage ratio of 2.5x demonstrates adequate ability to service debt obligations
- 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
- Thin operating margins (7.1%) and net margins (5.3%) leave limited room for cost inflation or revenue pressures
- Low free cash flow margin (2.4%) suggests capital intensity reduces distributable cash relative to revenue growth
- Modest ROE (8.3%) and ROA (3.6%) indicate below-average capital efficiency and returns to shareholders
- Regulatory and political risks inherent in corrections industry could impact occupancy, pricing, and growth trajectory
- Capital expenditure requirements of $141.8M consume 73% of operating cash flow, constraining dividend sustainability
- 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 margin expansion and OCF growth sustainability
- Operating margin trends amid labor cost and facility maintenance pressures
- Debt leverage ratios and interest coverage stability
- Occupancy rates and contract renewal dynamics with government agencies
- 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
The relatively thin 2.4% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $456.7M | $10.6M | $0.09 |
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 Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CXW's key strengths?
Claude: Strong revenue growth of 12.7% YoY indicates solid demand for correctional and detention services. Healthy liquidity position with 1.66x current ratio and manageable debt-to-equity of 0.86x. 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: Thin operating margins (7.1%) and net margins (5.3%) leave limited room for cost inflation or revenue pressures. Low free cash flow margin (2.4%) suggests capital intensity reduces distributable cash relative to revenue growth. 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 $2.2B.
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 $1.08.
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 rating reflects both perspectives for balanced insights.
Is CXW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, CoreCivic, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CXW stock overvalued or undervalued?
Valuation metrics for CXW: ROE of 8.3% (sector avg: 8%), net margin of 5.3% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.
Should I buy CXW stock in 2026?
Our dual AI analysis gives CoreCivic, Inc. a combined HOLD rating 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 $194.6M, with capital expenditures of $141.8M. FCF margin is 2.4%.
How does CXW compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 5.3% (avg: 20%), ROE 8.3% (avg: 8%), current ratio 1.66 (avg: 1.5).