Taking everything into account, CXW scores 5 out of 10 in our fundamental rating. CXW was compared to 80 industry peers in the Commercial Services & Supplies industry. CXW has an average financial health and profitability rating. CXW has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CXW had positive earnings in the past year.
In the past year CXW had a positive cash flow from operations.
CXW had positive earnings in 4 of the past 5 years.
CXW had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

CXW has a Return On Assets of 3.51%. This is in the better half of the industry: CXW outperforms 68.75% of its industry peers.
CXW has a better Return On Equity (7.43%) than 63.75% of its industry peers.
The Return On Invested Capital of CXW (5.58%) is comparable to the rest of the industry.
CXW had an Average Return On Invested Capital over the past 3 years of 4.72%. This is significantly below the industry average of 10.57%.
The 3 year average ROIC (4.72%) for CXW is below the current ROIC(5.58%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	3.51%
ROE	7.43%
ROIC	5.58%

ROA(3y)2.77%

ROA(5y)1.65%

ROE(3y)5.91%

ROE(5y)3.57%

ROIC(3y)4.72%

ROIC(5y)4.97%

1.3 Margins

CXW has a better Profit Margin (5.24%) than 66.25% of its industry peers.
In the last couple of years the Profit Margin of CXW has declined.
CXW has a better Operating Margin (10.22%) than 70.00% of its industry peers.
CXW's Operating Margin has declined in the last couple of years.
CXW's Gross Margin of 24.13% is on the low side compared to the rest of the industry. CXW is outperformed by 60.00% of its industry peers.
CXW's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	10.22%
PM (TTM)	5.24%
GM	24.13%

OM growth 3Y-11.18%

OM growth 5Y-7.87%

PM growth 3YN/A

PM growth 5Y-18.12%

GM growth 3Y-5.42%

GM growth 5Y-3.25%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CXW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CXW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CXW has less shares outstanding
Compared to 1 year ago, CXW has an improved debt to assets ratio.

2.2 Solvency

CXW has an Altman-Z score of 1.60. This is a bad value and indicates that CXW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.60, CXW is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of CXW is 9.24, which is on the high side as it means it would take CXW, 9.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CXW (9.24) is better than 61.25% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that CXW is somewhat dependend on debt financing.
The Debt to Equity ratio of CXW (0.70) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	9.24
Altman-Z	1.6

ROIC/WACC0.68

WACC8.27%

2.3 Liquidity

A Current Ratio of 1.41 indicates that CXW should not have too much problems paying its short term obligations.
CXW's Current ratio of 1.41 is in line compared to the rest of the industry. CXW outperforms 47.50% of its industry peers.
CXW has a Quick Ratio of 1.41. This is a normal value and indicates that CXW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.41, CXW is in line with its industry, outperforming 55.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.41
Quick Ratio	1.41

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 49.25% over the past year.
The earnings per share for CXW have been decreasing by -17.17% on average. This is quite bad
CXW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.72%.
CXW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.19% yearly.

EPS 1Y (TTM)49.25%

EPS 3Y25.31%

EPS 5Y-17.17%

EPS Q2Q%26.32%

Revenue 1Y (TTM)5.72%

Revenue growth 3Y1.74%

Revenue growth 5Y-0.19%

Sales Q2Q%18.08%

3.2 Future

Based on estimates for the next years, CXW will show a very strong growth in Earnings Per Share. The EPS will grow by 57.86% on average per year.
CXW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.48% yearly.

EPS Next Y67.56%

EPS Next 2Y57.86%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year12.2%

Revenue Next 2Y13.48%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.53, CXW is valued on the expensive side.
75.00% of the companies in the same industry are more expensive than CXW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.30. CXW is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.19, the valuation of CXW can be described as correct.
CXW's Price/Forward Earnings ratio is rather cheap when compared to the industry. CXW is cheaper than 83.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CXW to the average of the S&P500 Index (25.57), we can say CXW is valued rather cheaply.

		Industry Rank	Sector Rank
PE	18.53
Fwd PE	12.19

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CXW indicates a somewhat cheap valuation: CXW is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CXW is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	17.16
EV/EBITDA	8.67

4.3 Compensation for Growth

CXW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CXW's earnings are expected to grow with 57.86% in the coming years.