Corecivic Intrinsic Value – CORECIVIC Reports Q4 FY2022 Revenue of $24.4 Million, Net Income of $471.4 Million, Down 12.8% and 0.1% YOY Respectively.
March 20, 2023
Earnings Overview
For its fourth quarter of FY2022, CORECIVIC ($NYSE:CXW) reported total revenue of USD 24.4 million, a decrease of 12.8% year over year, and net income of USD 471.4 million, a decrease of 0.1% compared to the same period of the prior year. The period ended December 31 2022.
Transcripts Simplified
In the fourth quarter of 2022, we reported net income of $0.21 per share, or $0.22 of adjusted earnings per share. Normalized FFO per share was $0.42, and AFFO per share was $0.38. The adjusted and normalized per share amounts exclude a gain on sale of real estate assets, asset impairments and expenses associated with debt repayments. We incurred transition expenses at the La Palma Correctional Center due to transitioning populations from ICE to Arizona and we lost revenue due to the exploration of our McRae Correctional Facility contract with the Federal Bureau of Prisons.
However, per share results were still higher than analyst estimates due to employee retention credits under the CARES Act, which reduced operating expenses and offset the decline in earnings. Sequentially, our adjusted EPS increased $0.14 from $0.08 per share in Q3 to $0.22 per share in Q4, and our normalized FFO per share increased $0.13 from $0.29 per share in Q3 to $0.42 per share in Q4 due to reduced staffing incentives and registry nursing expenses.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Corecivic. More…
| Total Revenues | Net Income | Net Margin |
| 1.85k | 122.32 | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Corecivic. More…
| Operations | Investing | Financing |
| 153.58 | 73.04 | -375.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Corecivic. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.24k | 1.81k | 12.46 |
Key Ratios Snapshot
Some of the financial key ratios for Corecivic are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.3% | -15.0% | 13.6% |
| FCF Margin | ROE | ROA |
| 3.9% | 11.0% | 4.8% |
Share Price
CORECIVIC, a correctional services provider, reported its Q4 FY2022 results on Thursday evening. The company reported a total revenue of $24.4 million, representing a 12.8% year over year (YOY) decrease from the same period last year. Moreover, net income for the quarter totaled $471.4 million, a 0.1% YOY decline from the previous period. Following its financial report, CORECIVIC stock opened at $10.1 and closed at $11.4, soar by 13.1% from the previous closing of 10.1.
This marks the highest closing price since the start of the fourth quarter. Analysts attributed the surge in stock prices to investors’ optimism towards CORECIVIC’s financial performance despite the decreased revenue and net income YOY. Live Quote…
Analysis – Corecivic Intrinsic Value
At GoodWhale, we recently conducted an analysis of CORECIVIC‘s wellbeing. Using our proprietary Valuation Line, we calculated an intrinsic value of CORECIVIC shares to be around $10.6. Currently, CORECIVIC stock is traded at $11.4, which is a fair price that is slightly overvalued by 7.1%. Our analysis shows that CORECIVIC is doing well and there is potential for investors to make a return on their investment. More…
Peers
The Company operates through its subsidiaries, CoreCivic Properties and CoreCivic Communities. As of December 31, 2019, the Company owned or operated a portfolio of approximately 86,600 real estate assets with a gross book value of approximately $9.9 billion. The Company’s competitors include American Homes 4 Rent, Inland Real Estate Income Trust Inc, and Choice Properties Real Estate Investment Trust.
– American Homes 4 Rent ($NYSE:AMH)
American Homes 4 Rent is a real estate investment trust that acquires, renovates, leases, and manages single-family homes in the United States. As of December 31, 2020, the company owned 53,545 homes in 22 states.
– Inland Real Estate Income Trust Inc ($OTCPK:INRE)
Inland Real Estate Income Trust Inc is a real estate investment trust that focuses on generating income through investments in real estate. The company owns and operates a portfolio of properties, including office, retail, and multifamily properties. Inland Real Estate Income Trust Inc is headquartered in Oak Brook, Illinois.
– Choice Properties Real Estate Investment Trust ($TSX:CHP.UN)
Choice Properties Real Estate Investment Trust is a leading real estate investment trust in Canada. The company owns, manages and develops a diversified portfolio of commercial properties across the country. As of December 31, 2020, Choice Properties’ portfolio consisted of approximately 1,200 properties totaling approximately 178 million square feet of gross leasable area.
Summary
Investors have been closely watching the performance of CORECIVIC for the fourth quarter of FY2022, which ended on December 31, 2022. The company reported total revenue of USD 24.4 million and net income of USD 471.4 million, representing a decrease of 12.8% and 0.1%, respectively, year over year. Despite these decreases, investors responded positively to the results as the stock moved up on the same day. Although investors should remain aware of potential risks associated with investing in CORECIVIC, the current results suggest that the company may be able to deliver profitably for shareholders in the coming quarters.
