GEO Stock Overview
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom.
GEO Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$6.55|
|52 Week High||US$9.81|
|52 Week Low||US$5.21|
|1 Month Change||-5.07%|
|3 Month Change||4.80%|
|1 Year Change||-6.30%|
|3 Year Change||-67.96%|
|5 Year Change||-77.43%|
|Change since IPO||555.00%|
Recent News & Updates
GEO Group (NYSE:GEO) Takes On Some Risk With Its Use Of Debt
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
GEO Group: Amend-And-Extend Is In Sight
On May 2, GEO announced that a final definitive agreement has not been reached with the creditor ad hoc groups. Major terms of the proposed amend-and-extend transaction were agreed upon, however. GEO is expected to enter into a new non-disclosure agreement with the creditor ad hoc group to finalize an agreement. I will discuss the proposed transaction and the treatment of each security.
|GEO||US Commercial Services||US Market|
Return vs Industry: GEO exceeded the US Commercial Services industry which returned -7.4% over the past year.
Return vs Market: GEO exceeded the US Market which returned -19.1% over the past year.
|GEO Average Weekly Movement||7.3%|
|Commercial Services Industry Average Movement||7.4%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.3%|
Stable Share Price: GEO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: GEO's weekly volatility (7%) has been stable over the past year.
About the Company
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
GEO Group Fundamentals Summary
|GEO fundamental statistics|
Is GEO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GEO income statement (TTM)|
|Cost of Revenue||US$1.59b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.44|
|Net Profit Margin||2.37%|
How did GEO perform over the long term?See historical performance and comparison
Is GEO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GEO?
Other financial metrics that can be useful for relative valuation.
|What is GEO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does GEO's PE Ratio compare to its peers?
|GEO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
GEO GEO Group
Price-To-Earnings vs Peers: GEO is good value based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (15.9x).
Price to Earnings Ratio vs Industry
How does GEO's PE Ratio compare vs other companies in the US Commercial Services Industry?
Price-To-Earnings vs Industry: GEO is good value based on its Price-To-Earnings Ratio (14.9x) compared to the US Commercial Services industry average (22.9x)
Price to Earnings Ratio vs Fair Ratio
What is GEO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||14.9x|
|Fair PE Ratio||25.7x|
Price-To-Earnings vs Fair Ratio: GEO is good value based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (25.7x).
Share Price vs Fair Value
What is the Fair Price of GEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GEO ($6.55) is trading below our estimate of fair value ($17.71)
Significantly Below Fair Value: GEO is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: GEO is good value based on its PEG Ratio (0.5x)
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How is GEO Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEO's forecast earnings growth (28.1% per year) is above the savings rate (1.9%).
Earnings vs Market: GEO's earnings (28.1% per year) are forecast to grow faster than the US market (12.8% per year).
High Growth Earnings: GEO's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GEO's revenue (0.4% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: GEO's revenue (0.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if GEO's Return on Equity is forecast to be high in 3 years time
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How has GEO Group performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEO has high quality earnings.
Growing Profit Margin: GEO's current net profit margins (2.4%) are lower than last year (5.9%).
Past Earnings Growth Analysis
Earnings Trend: GEO's earnings have declined by 9.1% per year over the past 5 years.
Accelerating Growth: GEO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GEO had negative earnings growth (-61.3%) over the past year, making it difficult to compare to the Commercial Services industry average (23.4%).
Return on Equity
High ROE: GEO's Return on Equity (6.4%) is considered low.
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How is GEO Group's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: GEO's short term assets ($1.0B) exceed its short term liabilities ($408.4M).
Long Term Liabilities: GEO's short term assets ($1.0B) do not cover its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: GEO's net debt to equity ratio (230.2%) is considered high.
Reducing Debt: GEO's debt to equity ratio has increased from 207.8% to 288.8% over the past 5 years.
Debt Coverage: GEO's debt is not well covered by operating cash flow (9.5%).
Interest Coverage: GEO's interest payments on its debt are not well covered by EBIT (3x coverage).
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What is GEO Group current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GEO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GEO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GEO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GEO's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: GEO is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as GEO has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jose Gordo (48 yo)
Mr. Jose Gordo, J.D., serves as Chief Executive Officer at GEO Group, Inc. since July 1, 2021. He is the Co-founder of Southcap Partners. Mr. Gordo served as Treasurer at magicJack VocalTec Ltd.until May...
CEO Compensation Analysis
Compensation vs Market: Jose's total compensation ($USD2.05M) is below average for companies of similar size in the US market ($USD4.06M).
Compensation vs Earnings: Jose's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: GEO's management team is seasoned and experienced (8 years average tenure).
Experienced Board: GEO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The GEO Group, Inc.'s employee growth, exchange listings and data sources
- Name: The GEO Group, Inc.
- Ticker: GEO
- Exchange: NYSE
- Founded: 1984
- Industry: Security and Alarm Services
- Sector: Commercial Services
- Implied Market Cap: US$788.974m
- Shares outstanding: 120.45m
- Website: https://www.geogroup.com
Number of Employees
- The GEO Group, Inc.
- 4955 Technology Way
- Boca Raton
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/05 00:00|
|End of Day Share Price||2022/07/05 00:00|
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.