CXW

CoreCivic Inc

Industrial/Transportation, Event Driven/Special Sit


Presented:12/07/2021
Price:$10.37
Cap:$1.25B
Current Price:$13.79
Cap:$1.52B

Presented

Date12/07/2021
Price$10.37
Market Cap$1.25B
Ent Value$2.24B
P/E RatioN/A
Book Value$11.14
Div Yield0%
Shares O/S120.29M
Ave Daily Vol738,166
Short Int6.62%

Current

Price$13.79
Market Cap$1.52B
CoreCivic, Inc. operates as a government solutions company, which engages in the development and management of prisons and other correctional facilities. It operates through the following segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties segments. The CoreCivic Safety segment consists of correctional and detention facilities. It provides transportation services to government agencies and TransCoR. The CoreCivic Community segment offers residential reentry centers and gives electronic monitoring case management services. The CoreCivic Properties segment comprises of real estate properties owned by the company that are leased to government agencies. The company was founded by Thomas W. Beasley, T. Don Hutto, and Robert Crants on January 28, 1983 and is headquartered in Brentwood, TN.

Publicly traded companies mentioned herein: CoreCivic Inc (CXW), GEO Group Inc/The (GEO)

Highlights

The presenter is long shares of CoreCivic Inc (CXW), a major private prison operator. This industry has come under significant political pressure in recent years, but the presenter feels that this is ultimately “political theater” and that these businesses aren’t going away. As evidence, he notes the business has grown since the negative press intensified in 2016. Taking this a step further, he feels that the Biden administration’s handling of immigration has increased the demand for CXW’s services. He estimates that CXW is trading at a 16% FCF yield on next year’s numbers, making the current $10.50 share price attractive, and sees upside as management returns capital to shareholders starting as soon as 1H’22. 

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Idea Discussion

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