U.S. markets open in 2 hours 27 minutes
  • S&P Futures

    3,940.50
    +42.75 (+1.10%)
     
  • Dow Futures

    31,487.00
    +285.00 (+0.91%)
     
  • Nasdaq Futures

    12,050.25
    +172.00 (+1.45%)
     
  • Russell 2000 Futures

    1,799.70
    +24.80 (+1.40%)
     
  • Crude Oil

    112.45
    +0.24 (+0.21%)
     
  • Gold

    1,843.00
    +1.80 (+0.10%)
     
  • Silver

    22.00
    +0.10 (+0.44%)
     
  • EUR/USD

    1.0582
    -0.0006 (-0.05%)
     
  • 10-Yr Bond

    2.8550
    0.0000 (0.00%)
     
  • Vix

    28.63
    -2.33 (-7.53%)
     
  • GBP/USD

    1.2480
    +0.0005 (+0.04%)
     
  • USD/JPY

    127.9950
    +0.2010 (+0.16%)
     
  • BTC-USD

    30,373.82
    +1,194.50 (+4.09%)
     
  • CMC Crypto 200

    677.59
    +25.35 (+3.89%)
     
  • FTSE 100

    7,441.13
    +138.39 (+1.90%)
     
  • Nikkei 225

    26,739.03
    +336.19 (+1.27%)
     

How Much Did CoreCivic's(NYSE:CXW) Shareholders Earn From Share Price Movements Over The Last Five Years?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

While it may not be enough for some shareholders, we think it is good to see the CoreCivic, Inc. (NYSE:CXW) share price up 26% in a single quarter. But over the last half decade, the stock has not performed well. In fact, the share price is down 62%, which falls well short of the return you could get by buying an index fund.

View our latest analysis for CoreCivic

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

In the last half decade CoreCivic saw its share price fall as its EPS declined below zero. This was, in part, due to extraordinary items impacting earnings. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What about the Total Shareholder Return (TSR)?

We've already covered CoreCivic's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that CoreCivic's TSR, which was a 48% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

CoreCivic shareholders are up 18% for the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 8% endured over half a decade. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with CoreCivic , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.