The GEO Group (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. More Details
Very undervalued with questionable track record.
Share Price & News
How has GEO Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GEO's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: GEO underperformed the US REITs industry which returned -19.5% over the past year.
Return vs Market: GEO underperformed the US Market which returned 11.5% over the past year.
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
1 week ago | Simply Wall StAre Insiders Buying The GEO Group, Inc. (NYSE:GEO) Stock?
4 weeks ago | Simply Wall StHere's What The GEO Group, Inc.'s (NYSE:GEO) Shareholder Ownership Structure Looks Like
1 month ago | Simply Wall StOur Take On GEO Group's (NYSE:GEO) CEO Salary
Is GEO Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GEO ($8.88) is trading below our estimate of fair value ($30.08)
Significantly Below Fair Value: GEO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GEO is good value based on its PE Ratio (7.3x) compared to the US REITs industry average (33.5x).
PE vs Market: GEO is good value based on its PE Ratio (7.3x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: GEO is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: GEO is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.3x).
How is GEO Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEO's forecast earnings growth (8% per year) is above the savings rate (2.2%).
Earnings vs Market: GEO's earnings (8% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: GEO's earnings are forecast to grow, but not significantly.
Revenue vs Market: GEO's revenue (0.6% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: GEO's revenue (0.6% 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
How has GEO Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEO has high quality earnings.
Growing Profit Margin: GEO's current net profit margins (6%) are lower than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: GEO's earnings have grown by 2.4% 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 (-6.1%) over the past year, making it difficult to compare to the REITs industry average (5.9%).
Return on Equity
High ROE: GEO's Return on Equity (15.4%) is considered low.
How is GEO Group's financial position?
Financial Position Analysis
Short Term Liabilities: GEO's short term assets ($510.3M) exceed its short term liabilities ($400.9M).
Long Term Liabilities: GEO's short term assets ($510.3M) do not cover its long term liabilities ($2.9B).
Debt to Equity History and Analysis
Debt Level: GEO's debt to equity ratio (286.2%) is considered high.
Reducing Debt: GEO's debt to equity ratio has increased from 201.9% to 286.2% over the past 5 years.
Debt Coverage: GEO's debt is not well covered by operating cash flow (14%).
Interest Coverage: GEO's interest payments on its debt are not well covered by EBIT (2.3x coverage).
What is GEO Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GEO's dividend (15.32%) is higher than the bottom 25% of dividend payers in the US market (1.71%).
High Dividend: GEO's dividend (15.32%) is in the top 25% of dividend payers in the US market (4.86%)
Stability and Growth of Payments
Stable Dividend: GEO has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: GEO's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (105.3%), GEO's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
George Zoley (70 yo)
Mr. George C. Zoley, Ph.D., Founded The Geo Group, Inc. (formerly known as Wackenhut Corrections Corp.) in 1984 and has been its Chairman and Chief Executive Officer since May 2002 and April 1994 respectiv ...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD6.05M) is above average for companies of similar size in the US market ($USD3.00M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
|Senior VP & CFO||11.17yrs||US$2.69m||0.098% |
|Senior Vice President of Client Relations||6.75yrs||US$1.35m||0.051% |
|Senior VP & President of GEO Care||6.25yrs||US$1.46m||0.052% |
|Executive VP||11.17yrs||no data||0.034% |
|Executive VP||no data||no data||no data|
|Executive Vice President of Corporate Relations||no data||no data||no data|
|Senior VP||1.75yrs||no data||no data|
|Executive Vice President of Human Resources||no data||no data||no data|
|Executive Vice President of Contract Administration||no data||no data||no data|
|Managing Director of GEO Australia||no data||no data||no data|
Experienced Management: GEO's management team is seasoned and experienced (6.8 years average tenure).
|Lead Independent Director||9.75yrs||US$373.72k||0.0018% |
|Independent Director||18.75yrs||US$257.72k||0.013% |
|Independent Director||10.58yrs||US$269.72k||0.021% |
|Independent Director||2.25yrs||US$255.72k||0.0018% |
|Independent Director||6.25yrs||US$246.72k||0.014% |
|Director||0.25yr||no data||no data|
Experienced Board: GEO's board of directors are considered experienced (6.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GEO insiders have only sold shares 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 company bio, employee growth, exchange listings and data sources
- Name: The GEO Group, Inc.
- Ticker: GEO
- Exchange: NYSE
- Founded: 1984
- Industry: Specialized REITs
- Sector: Real Estate
- Market Cap: US$1.058b
- Shares outstanding: 119.15m
- Website: https://www.geogroup.com
Number of Employees
- The GEO Group, Inc.
- 4955 Technology Way
- Boca Raton
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GEO||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jul 1994|
|GEG||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 1994|
|GEO1 *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jul 1994|
The GEO Group (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of secure facilities, processing centers, and c ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/30 04:17|
|End of Day Share Price||2020/10/29 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.