CoreCivic’s earnings (NYSE:CXW), have fallen over five years, which has contributed to shareholders’ 35% loss

It is undoubtedly a positive sign to see that the CoreCivic, Inc. (NYSE:CXWThe share price of ) has increased by 33% over the past three months. However, if you take a look at the past five years, the returns have been poor. As a result, the share price has declined 47% during that period, which is significantly less than the market.

Shareholders have been more optimistic in recent weeks, but they remain in the red for five years. Let’s find out if it’s the underlying business that’s responsible for the decline.

View our latest analysis for CoreCivic

Benjamin Graham said, “The market is a voting device in the short-term. But it’s a weight machine over the long-term.” To see how sentiment has changed over the years, one way is to examine the interaction between share price and earnings per share (EPS).

CoreCivic has been profitable for five years. This would be considered a positive so it is surprising that the share price has fallen. It might be possible to get a better idea of how the value has changed over time by using other metrics.

Contrary to the share prices, revenue actually increased by 0.9% each year over the five-year period. To understand why the share market is stagnant, one may need to look closer at the facts. There might be an opportunity.

Below is a graphic that shows how earnings and revenues have changed over time. Click on the image to see the exact values.

CoreCivic’s bottom line has been improving lately. But what about the future? It makes sense to see what analysts believe CoreCivic will do in the future. earn in the future (free profit forecasts).

What about The Total Shareholder Return (TSR).

We would be remiss if we didn’t mention the difference between CoreCivic’s. Total shareholder return (TSR and its share price return. The TSR may be a better return calculation than the share price return because it includes dividends (as though they were reinvested) and any discount capital that has been offered to shareholders. CoreCivic shareholders have enjoyed dividends, which explains why the 35% shareholder loss over the last five years hasn’t been as devastating as the share prices return.

A Different Perspective

CoreCivic shareholders have enjoyed a total shareholder return in excess of 15% over the past one year. This is a nice thing to see. Notably, the annualized TSR loss over five years of 6% per annum is quite dissimilar to recent share price performances. While the long-term loss is concerning, the short-term TSR gain suggests a brighter future. It is very interesting to see share price over time as a proxy of business performance. To gain real insight, however, we must consider other information. We’ve identified 4 warning signs for CoreCivic (2 shouldn’t be ignored) You should be aware.

Take note! CoreCivic might not be the best stock for you to buy. Take a look at this. No cost list of interesting companies with past earnings growth (and further growth forecast).

Please note: The market returns quoted in the article represent the market weighted returns of stocks trading on US exchanges.

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This article by Simply Wall St has a general nature. We only provide commentary on historical data and analyst projections. Our articles are not meant to be considered financial advice. It is not a recommendation not to buy or sell any stocks and does not take into account your financial goals. We strive to deliver long-term focused analysis that is based on fundamental data. Please note that our analysis might not include the latest announcements from price-sensitive companies or qualitative material. Simply Wall St holds no position in any of the stocks mentioned.

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