DB:GEG

Stock Analysis Report

Executive Summary

The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom.

Snowflake

Fundamentals

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has GEO Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

GEG

1.0%

DE REITs

1.7%

DE Market


1 Year Return

-31.5%

GEG

29.6%

DE REITs

7.2%

DE Market

Return vs Industry: GEG underperformed the German REITs industry which returned 29.6% over the past year.

Return vs Market: GEG underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

GEGIndustryMarket
7 Day2.4%1.0%1.7%
30 Day-7.9%4.6%2.4%
90 Day-6.0%10.6%2.3%
1 Year-24.9%-31.5%34.2%29.6%10.6%7.2%
3 Year23.9%-3.5%31.2%12.7%18.4%8.1%
5 Year7.1%-28.3%57.9%23.4%42.3%22.9%

Price Volatility Vs. Market

How volatile is GEO Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GEO Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GEG (€14.43) is trading below our estimate of fair value (€39)

Significantly Below Fair Value: GEG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GEG is poor value based on its PE Ratio (12.5x) compared to the REITs industry average (8.1x).

PE vs Market: GEG is good value based on its PE Ratio (12.5x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GEG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GEG is overvalued based on its PB Ratio (1.9x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is GEO Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GEG's forecast earnings growth (5.1% per year) is above the savings rate (0.2%).

Earnings vs Market: GEG's earnings (5.1% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: GEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if GEG's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if GEG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GEG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GEO Group performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GEG's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: GEG's earnings growth over the past year (5.5%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: GEG earnings growth over the past year (5.5%) underperformed the REITs industry 103.4%.


Return on Equity

High ROE: GEG's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: GEG's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: GEG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is GEO Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GEG has a high level of physical assets or inventory.

Debt Coverage by Assets: GEG's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: GEG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GEG has a sufficient allowance for bad loans.

Low Risk Liabilities: GEG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GEG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GEG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GEG has an appropriate level of bad loans.


Next Steps

Dividend

What is GEO Group's current dividend yield, its reliability and sustainability?

11.84%

Current Dividend Yield


Dividend Yield vs Market

company11.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GEG's dividend (11.84%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: GEG's dividend (11.84%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: Whilst dividend payments have been stable, GEG has been paying a dividend for less than 10 years.

Growing Dividend: GEG's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (99.2%), GEG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of GEO Group's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

George Zoley (69yo)

25.8yrs

Tenure

US$6,963,460

Compensation

Mr. George C. Zoley, Ph.D., Founded The Geo Group, Inc. (formerly known as Wackenhut Corrections Corp.) in 1984 and has been its Chairman and Chief Executive Officer since May 2002 and April 1994 respectiv ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD6.96M) is about average for companies of similar size in the German market ($USD1.57M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.7yrs

Average Tenure

57yo

Average Age

Experienced Management: GEG's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

69yo

Average Age

Experienced Board: GEG's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: GEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$125,79505 Sep 19
Anne Foreman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$15.72
SellUS$26,25913 Aug 19
Richard Glanton
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,663
Max PriceUS$15.79
SellUS$46,00421 May 19
Richard Glanton
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,400
Max PriceUS$19.17
SellUS$18,93211 Mar 19
Richard Glanton
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$18.93
SellUS$20,24012 Dec 18
Christopher Wheeler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$20.24
BuyUS$979,63326 Nov 18
George Zoley
EntityIndividual
Role
Chief Executive Officer
Founder
Shares50,000
Max PriceUS$19.59
BuyUS$2,399,40414 Nov 18
George Zoley
EntityIndividual
Role
Chief Executive Officer
Founder
Shares120,240
Max PriceUS$20.16

Ownership Breakdown


Management Team

  • George Zoley (69yo)

    Founder

    • Tenure: 25.8yrs
    • Compensation: US$6.96m
  • Pablo Paez (38yo)

    Executive Vice President

    • Tenure: 0yrs
  • Brian Evans (51yo)

    Senior VP & CFO

    • Tenure: 10.2yrs
    • Compensation: US$2.22m
  • Amber Martin

    Executive Vice President of Contract Administration

    • Tenure: 0yrs
  • Ronald Brack (57yo)

    Executive VP

    • Tenure: 10.2yrs
  • Dave Donahue (59yo)

    Senior VP & President of GEO Secure Services

    • Tenure: 3.8yrs
    • Compensation: US$2.03m
  • Ann Schlarb (54yo)

    Senior VP & President of GEO Care

    • Tenure: 5.3yrs
    • Compensation: US$1.63m
  • Joe Negron (57yo)

    Senior VP

    • Tenure: 0.8yrs
  • Jose Rosario

    Executive VP

    • Tenure: 0yrs
  • Christopher Ryan

    Executive Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • George Zoley (69yo)

    Founder

    • Tenure: 25.8yrs
    • Compensation: US$6.96m
  • Richard Glanton (72yo)

    Lead Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$430.70k
  • Anne Foreman (71yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$268.20k
  • Norman Carlson (85yo)

    Director Emeritus

    • Tenure: 4.8yrs
    • Compensation: US$50.00k
  • Chris Wheeler (72yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$294.21k
  • Guido Van Hauwermeiren (57yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$194.17k
  • Jose Gordo (45yo)

    Director

    • Tenure: 0yrs
  • Julie Wood (49yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$257.20k
  • Scott Kernan (58yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$157.80k

Company Information

The GEO Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The GEO Group, Inc.
  • Ticker: GEG
  • Exchange: DB
  • Founded: 1984
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$1.907b
  • Listing Market Cap: US$1.712b
  • Shares outstanding: 119.18m
  • Website: https://www.geogroup.com

Number of Employees


Location

  • The GEO Group, Inc.
  • 4955 Technology Way
  • Boca Raton
  • Florida
  • 33431
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEGDB (Deutsche Boerse AG)COM USD0.01 NEWDEEURNo data
GEONYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1994
GEGDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1994

Biography

The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional facilities, processing ce ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:25
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.