CoreCivic: A Clear Beneficiary Of The Current Administration's Tough Immigration Policies

Summary

• In 1Q25, CoreCivic's revenue declined slightly to $488.63 million. The net income margin improved substantially to 5.14% from 1.91% due to lower financial obligations.
• Due to the current administration's tough immigration policies, CXW is likely to see a huge increase in demand for its services, resulting in higher revenue growth.
• Separately, CXW has the potential further improve margins and returning more value to shareholders by maintaining financial discipline.
• Although the company's share price has increased 18% in the past year, valuation analysis suggests that CXW is undervalued with a potential upside of 18%.

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Introduction

Based on my analysis, even though CoreCivic's (NYSE:CXW) share price has increased by 87.64% in the past year, I believe that the company is still undervalued. Apart from potential revenue growth due to the Trump administration's

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.