CoreCivic Stock Sees Unusual Overvaluation
December 27, 2022
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Corecivic Intrinsic Value – CORECIVIC ($NYSE:CXW): CoreCivic Inc. is a real estate investment trust (REIT) and leading provider of government real estate solutions in the United States, operating through its subsidiaries. CoreCivic Inc. has a strong track record of providing quality service to government partners.
However, despite the company’s strong fundamentals and consistent performance, CoreCivic Inc. stock is currently overvalued. This is more than twice the gain seen by other REITs over the same period. The market appears to be overlooking other important factors that could affect the company’s share price. This suggests that investors are not expecting much in terms of dividend payments from the company. Overall, while CoreCivic Inc.’s fundamentals remain strong, its stock appears to be overvalued at current levels. Investors should exercise caution when considering investing in the company’s stock at this time, as there are several risk factors that could lead to a potential correction in its share price in the near future.
Price History
The stock of CoreCivic Inc. has seen unusual overvaluation in recent days. News sentiment surrounding the company, so far, has remained mostly positive. On Wednesday, CORECIVIC’s stock opened at $11.6, and closed at $11.8 per share, up by 3.5% from its prior closing price of 11.4. This increase in stock value follows a series of positive news reports and corporate developments in recent weeks. The bullish sentiment in the market towards CORECIVIC stock has pushed the stock price to new highs, while trading volume has also seen an increase. Analysts are confident that the stock of CoreCivic Inc. will continue to make gains in the near future. The company has been able to maintain its strong financial performance and its long-term prospects remain bright.
Investors remain confident in CoreCivic’s ability to deliver on its promises and achieve long-term success. The company’s well-diversified portfolio of services, which includes correctional and detention services, residential reentry centers and government real estate solutions, has made it one of the most sought after companies in the sector. Overall, CORECIVIC’s stock has seen a substantial increase in value due to strong market sentiment. The stock is likely to remain overvalued until the market sentiment turns bearish or some unexpected news breaks out. Nevertheless, investors remain optimistic about the company’s future prospects and its ability to deliver on its promises. Live Quote…
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 | 125.92 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Corecivic. More…
| Operations | Investing | Financing |
| 97.28 | 65.79 | -430.58 |
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 |
| 3.27k | 1.87k | 12.19 |
Key Ratios Snapshot
Some of the financial key ratios for Corecivic are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 10.3% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – Corecivic Intrinsic Value
Analysis of the company’s intrinsic value can be made simple by using the VI app. According to the VI Line, the intrinsic value of each CoreCivic share is approximately $10.3. Currently, the stock is being traded at $11.8, which is a fair price but slightly overvalued by 15%. CoreCivic offers a variety of services that support government partners, including managing correctional and detention facilities, providing residential reentry services and operating government functions such as government-owned real estate and public finance services. The company has a strong commitment to integrity and ethical business practices, which is further demonstrated by its compliance with applicable laws, regulations and contractual requirements. CoreCivic has an experienced management team and a strong balance sheet that allows it to pay competitive dividends and invest in its future growth. The company has consistently delivered strong financial performance, including generating positive cash flow from operations and delivering returns to shareholders over the long term. Overall, CoreCivic is a well-managed company with a solid history of delivering results and positive cash flow. Its stock may be slightly overvalued at present, but it is still a good investment for those looking for long-term returns and a safe dividend yield. More…
VI 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
Investing in CoreCivic Inc. stock has become increasingly popular due to recent positive news sentiment and an increase in stock price. Analysts believe the stock is currently overvalued, due to the high demand. Investors should exercise caution when investing in CoreCivic Inc. stock, as there is no guarantee that the stock will continue to rise in value. It is recommended that investors research the company thoroughly and consider other investment opportunities before investing in CoreCivic Inc. stock.
