CoreCivic’s revenue falls 1.5% in third quarter

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CORECIVIC INC ($NYSE:CXW) is a Tennessee-based company that owns and operates prisons and detention centers. The company has come under fire in recent years for its treatment of inmates and its close relationship with the Trump administration. CoreCivic’s revenue fell 1.5% in the third quarter of 2022, to $464.2 million. The company attributed the decline to the “continued impact of the pandemic on our business.” CoreCivic has been hit hard by the coronavirus pandemic, as prison visits have been cancelled and inmates have been released early to prevent the spread of the virus.

Despite the decline in revenue, CoreCivic’s CEO said the company is “well-positioned” to weather the pandemic and emerge “stronger than ever.” The company has been working to diversify its revenue stream, and has been investing in real estate and other businesses. CoreCivic has come under intense scrutiny in recent years, and the pandemic has only increased the pressure on the company. Human rights groups have accused CoreCivic of putting profit over people, and have called for an end to the company’s contracts with the government.

Stock Price

The company’s stock opened at $10.7 on Friday and closed at $11.2, a rise of 6.8% from the prior closing price of $10.5.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on CORECIVIC INC are made simple by VI app. CORECIVIC INC has a high health score of 7/10 with regard to its cashflows and debt, is capable to sustain future operations in times of crisis. CORECIVIC INC is strong in profitability, medium in asset and weak in dividend, growth. CORECIVIC INC is classified as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends.

What type of investors may interested in such company? Such companies are usually of interest to income investors who are looking for a company that can provide them with a steady stream of dividend payments.

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 can be seen as a way of investing in the US prison system. The company owns and operates prisons and detention centers across the United States. It is one of the largest private prison operators in the country. The company has been criticized for its treatment of inmates, as well as for its profit motive.

However, it continues to be a major player in the US prison system. If you are interested in investing in CORECIVIC Inc, you should research the company carefully and consult with a financial advisor to see if it is a good fit for your investment portfolio.