The Buy Thesis
If one looks at the cheap valuation of Core Civic (CXW) relative to its strong fundamental trajectory, it appears to be an obvious buy. CXW is trading at a 6.9X multiple despite rapidly growing revenues, FFO/share and NFFO/share. It has a dividend yield over 10% that is well covered with a payout ratio that is below the REIT average. Core Civic fundamentally should trade at $33.80, but it presently is available at $18.00. We believe the fundamental justification for our fair value target is clear, straight forward and reasonably conservative.