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GEO Group

NYSE:GEO
Snowflake Description

Good value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GEO
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

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, detention, and community reentry facilities around the globe. The last earnings update was 14 days ago. More info.


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GEO Share Price and Events
7 Day Returns
2.4%
NYSE:GEO
1.8%
US REITs
-0.7%
US Market
1 Year Returns
-11.6%
NYSE:GEO
16.3%
US REITs
3%
US Market
GEO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GEO Group (GEO) 2.4% 10.5% -5.8% -11.6% 1.5% -5.7%
US REITs 1.8% 2.4% 3.1% 16.3% 13.8% 26.4%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • GEO underperformed the REITs industry which returned 16.3% over the past year.
  • GEO underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
GEO
Industry
5yr Volatility vs Market

GEO Value

 Is GEO Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of GEO Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for GEO Group.

NYSE:GEO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GEO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.531 (1 + (1- 21%) (114.78%))
1.008
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.008 * 5.96%)
8.74%

Discounted Cash Flow Calculation for NYSE:GEO using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for GEO Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

GEO Group is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:GEO DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 8.74%)
2019 319.58 Analyst x1 293.89
2020 331.75 Analyst x1 280.56
2021 344.53 Est @ 3.85% 267.96
2022 356.65 Est @ 3.52% 255.09
2023 368.35 Est @ 3.28% 242.28
2024 379.83 Est @ 3.12% 229.75
2025 391.23 Est @ 3% 217.63
2026 402.65 Est @ 2.92% 205.98
2027 414.17 Est @ 2.86% 194.84
2028 425.86 Est @ 2.82% 184.24
Present value of next 10 years cash flows $2,372.22
NYSE:GEO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $425.86 × (1 + 2.73%) ÷ (8.74% – 2.73%)
$7,279.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,279.65 ÷ (1 + 8.74%)10
$3,149.40
NYSE:GEO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,372.22 + $3,149.40
$5,521.63
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,521.63 / 119.11
$46.36
NYSE:GEO Discount to Share Price
Calculation Result
Value per share (USD) From above. $46.36
Current discount Discount to share price of $21.42
= -1 x ($21.42 - $46.36) / $46.36
53.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price GEO Group is available for.
Intrinsic value
>50%
Share price is $21.42 vs Future cash flow value of $46.36
Current Discount Checks
For GEO Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • GEO Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • GEO Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for GEO Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GEO Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GEO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.26
NYSE:GEO Share Price ** NYSE (2019-05-17) in USD $21.42
United States of America REITs Industry PE Ratio Median Figure of 156 Publicly-Listed REITs Companies 32.79x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GEO Group.

NYSE:GEO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GEO Share Price ÷ EPS (both in USD)

= 21.42 ÷ 1.26

16.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GEO Group is good value based on earnings compared to the US REITs industry average.
  • GEO Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does GEO Group's expected growth come at a high price?
Raw Data
NYSE:GEO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
9.3%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 2.4x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:GEO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.97x ÷ 9.3%

1.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GEO Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on GEO Group's assets?
Raw Data
NYSE:GEO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $8.63
NYSE:GEO Share Price * NYSE (2019-05-17) in USD $21.42
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.86x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:GEO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GEO Share Price ÷ Book Value per Share (both in USD)

= 21.42 ÷ 8.63

2.48x

* Primary Listing of GEO Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GEO Group is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess GEO Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. GEO Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GEO Future Performance

 How is GEO Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GEO Group expected to grow at an attractive rate?
  • GEO Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • GEO Group's earnings growth is positive but not above the United States of America market average.
  • GEO Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GEO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GEO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 9.3%
NYSE:GEO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 1.6%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GEO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GEO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,460 180 2
2019-12-31 2,470 176 1
NYSE:GEO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,377 304 151
2018-12-31 2,331 274 145
2018-09-30 2,301 548 148
2018-06-30 2,284 515 147
2018-03-31 2,278 403 141
2017-12-31 2,263 381 146
2017-09-30 2,261 42 159
2017-06-30 2,249 -16 165
2017-03-31 2,220 37 157
2016-12-31 2,179 -28 149
2016-09-30 2,113 19 143
2016-06-30 2,029 101 138

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GEO Group's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
  • GEO Group's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GEO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from GEO Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GEO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.49 1.50 1.48 2.00
2019-12-31 1.47 1.47 1.47 1.00
NYSE:GEO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.26
2018-12-31 1.21
2018-09-30 1.22
2018-06-30 1.21
2018-03-31 1.15
2017-12-31 1.22
2017-09-30 1.36
2017-06-30 1.44
2017-03-31 1.40
2016-12-31 1.34
2016-09-30 1.29
2016-06-30 1.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if GEO Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess GEO Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
GEO Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GEO Past Performance

  How has GEO Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare GEO Group's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • GEO Group's year on year earnings growth rate has been positive over the past 5 years.
  • GEO Group's 1-year earnings growth exceeds its 5-year average (7.1% vs 3.1%)
  • GEO Group's earnings growth has not exceeded the US REITs industry average in the past year (7.1% vs 16%).
Earnings and Revenue History
GEO Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from GEO Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GEO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,377.14 150.81 189.11
2018-12-31 2,331.39 145.09 184.52
2018-09-30 2,300.93 148.05 182.23
2018-06-30 2,284.16 147.25 178.69
2018-03-31 2,277.72 140.83 170.49
2017-12-31 2,263.42 146.24 171.24
2017-09-30 2,261.02 159.32 166.20
2017-06-30 2,248.64 164.55 159.58
2017-03-31 2,219.92 156.77 157.23
2016-12-31 2,179.49 148.72 148.71
2016-09-30 2,113.04 143.34 144.72
2016-06-30 2,028.53 137.93 140.98
2016-03-31 1,926.12 143.01 136.25
2015-12-31 1,843.31 139.44 137.04
2015-09-30 1,770.92 133.43 127.85
2015-06-30 1,758.95 134.11 122.39
2015-03-31 1,725.85 144.72 118.36
2014-12-31 1,691.62 143.93 115.02
2014-09-30 1,647.43 133.49 115.37
2014-06-30 1,569.37 126.66 114.31
2014-03-31 1,538.18 121.97 113.52
2013-12-31 1,522.07 117.40 117.06
2013-09-30 1,517.26 185.17 121.27
2013-06-30 1,506.53 168.44 120.48
2013-03-31 1,496.05 155.11 119.25
2012-12-31 1,479.06 145.41 113.79
2012-09-30 1,334.67 63.14 103.64
2012-07-01 1,361.24 68.60 101.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • GEO Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • GEO Group used its assets more efficiently than the US REITs industry average last year based on Return on Assets.
  • GEO Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess GEO Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
GEO Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GEO Health

 How is GEO Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up GEO Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • GEO Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • GEO Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of GEO Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from GEO Group Company Filings, last reported 1 month ago.

NYSE:GEO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,026.90 2,928.44 67.73
2018-12-31 1,039.90 2,755.64 31.26
2018-09-30 1,080.41 2,739.22 66.01
2018-06-30 1,092.94 2,676.74 65.45
2018-03-31 1,138.57 2,643.43 49.24
2017-12-31 1,198.92 2,595.88 81.38
2017-09-30 1,214.09 2,763.43 51.53
2017-06-30 1,226.70 2,670.88 65.90
2017-03-31 1,245.65 2,595.21 434.56
2016-12-31 974.96 2,438.48 68.04
2016-09-30 966.40 2,437.57 30.12
2016-06-30 967.50 2,295.14 38.87
2016-03-31 991.73 2,227.09 23.23
2015-12-31 1,006.84 2,115.58 59.64
2015-09-30 1,005.46 2,107.19 47.13
2015-06-30 1,016.58 2,061.52 47.04
2015-03-31 1,026.43 2,003.35 68.98
2014-12-31 1,045.99 1,640.64 41.34
2014-09-30 1,066.75 1,608.28 52.68
2014-06-30 1,020.08 1,576.52 37.36
2014-03-31 1,018.26 1,578.71 38.06
2013-12-31 1,023.98 1,585.17 52.13
2013-09-30 1,034.37 1,557.08 53.16
2013-06-30 1,035.88 1,571.59 38.51
2013-03-31 1,039.78 1,539.44 83.72
2012-12-31 1,047.30 1,488.17 31.76
2012-09-30 1,051.84 1,498.07 69.09
2012-07-01 1,072.65 1,569.24 68.54
  • GEO Group's level of debt (285.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (155% vs 285.2% today).
  • Debt is not well covered by operating cash flow (10.4%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess GEO Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. GEO Group has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GEO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.96%
Current annual income from GEO Group dividends.
If you bought $2,000 of GEO Group shares you are expected to receive $179 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • GEO Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • GEO Group's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GEO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GEO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NYSE:GEO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-03 1.920 9.544
2019-02-04 1.920 9.102
2018-10-15 1.880 8.513
2018-07-10 1.880 7.455
2018-04-11 1.880 7.738
2018-02-05 1.880 8.943
2017-10-12 1.880 7.696
2017-07-10 1.880 6.897
2017-04-26 1.880 6.061
2017-02-06 1.867 6.073
2016-10-18 1.733 8.097
2016-07-20 1.733 10.253
2016-04-20 1.733 7.838
2016-02-04 1.733 8.441
2015-11-06 1.733 9.134
2015-11-05 1.733 7.986
2015-04-30 1.653 7.343
2015-02-06 1.653 5.777
2014-11-06 1.653 6.073
2014-08-06 1.520 6.066
2014-04-29 1.520 6.585
2014-02-19 1.520 7.040
2013-11-04 1.467 6.695
2013-08-07 1.333 5.996
2013-05-08 1.333 5.653
2013-01-18 1.333 5.652
2012-11-05 0.533 2.778
2012-08-07 0.533 2.951
2012-02-27 0.267 1.928

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, GEO Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but GEO Group only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of GEO Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess GEO Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can GEO Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GEO Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GEO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
George Zoley
COMPENSATION $6,963,460
AGE 68
TENURE AS CEO 25.3 years
CEO Bio

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 respectively. Mr. Zoley founded GEO Care Inc., a wholly-owned subsidiary of The GEO Group, Inc. in 1984 and serves as its Chairman and Chief Executive Officer. He serves as Chief Executive Officer and Vice Chairman of Wackenhut Corrections of The Wackenhut Corporation. He served as the President Geo of Group Inc. since 1988. He served as Chief Executive Officer of Cornell Companies Inc. since August 12, 2010. He was the Treasurer at CentraCore Properties Trust. Mr. Zoley served as the Vice President, manager and Director of Government Services of Wackenhut Services Inc. (“WSI“) from 1981 to 1988. He was responsible for the development of opportunities in the privatization of government services by WSI. He held various administrative and management positions for city and county governments in South Florida. He served as the Chairman of the Board of Correctional Properties Trust (CPT) from February 18, 1998 to September 9, 2002. He served as the Vice Chairman of The Geo Group Inc. from January 1997 to May 2002. He has been a Director of The Geo Group, Inc. since 1988. Mr. Zoley serves as a Director of Australasian Correctional Services Pty Limited, Australasian Correctional Management Pty Limited, Canadian Correctional Management Inc., WCC RE Holdings LLC., GEO Care, Inc. (alternate name, Atlantic Shores Healthcare Inc.) and of other subsidiaries through which WCC conducts its operations. He served as a Director of Wackenhut Corrections Corporation Australia Pty Limited. He served as a Director of Cornell Companies Inc. since August 12, 2010. He served as a Director since WCC since 1988. He served as the Chairman of the Board of Trustees of Florida Atlantic University since January 15, 2003. He is a member of the Board of Trustees of Florida Atlantic University in Boca Raton, Florida. He served as Chair of the FAU Presidential Search Committee and is a member of the FAU Foundation board of directors. Mr. Zoley holds a Bachelor's and Master's Degrees in Public Administration from Florida Atlantic University (FAU) and a Doctorate Degree in Public Administration from Nova Southeastern University (NSU).

CEO Compensation
  • George's compensation has been consistent with company performance over the past year.
  • George's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the GEO Group management team in years:

7.3
Average Tenure
56
Average Age
  • The average tenure for the GEO Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

George Zoley

TITLE
Founder
COMPENSATION
$7M
AGE
68
TENURE
25.3 yrs

Brian Evans

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
50
TENURE
9.8 yrs

Dave Donahue

TITLE
Senior VP and President of U.S. Corrections
COMPENSATION
$2M
AGE
58
TENURE
3.3 yrs

Ann Schlarb

TITLE
Senior VP & President of GEO Care
COMPENSATION
$2M
AGE
53
TENURE
4.8 yrs

Ronald Brack

TITLE
Executive VP
AGE
56
TENURE
9.8 yrs

Jose Rosario

TITLE
Executive VP

Pablo Paez

TITLE
Executive Vice President
AGE
37

Joe Negron

TITLE
Senior VP
AGE
56
TENURE
0.3 yrs

Christopher Ryan

TITLE
Executive Vice President of Human Resources

Amber Martin

TITLE
Executive Vice President of Contract Administration
Board of Directors Tenure

Average tenure and age of the GEO Group board of directors in years:

6.6
Average Tenure
69
Average Age
  • The tenure for the GEO Group board of directors is about average.
Board of Directors

George Zoley

TITLE
Founder
COMPENSATION
$7M
AGE
68
TENURE
17.3 yrs

Richard Glanton

TITLE
Lead Independent Director
COMPENSATION
$431K
AGE
71
TENURE
8.3 yrs

Anne Foreman

TITLE
Director
COMPENSATION
$268K
AGE
70
TENURE
17.3 yrs

Chris Wheeler

TITLE
Director
COMPENSATION
$294K
AGE
71
TENURE
9.3 yrs

Julie Wood

TITLE
Director
COMPENSATION
$257K
AGE
48
TENURE
4.8 yrs

Guido Van Hauwermeiren

TITLE
Director
COMPENSATION
$194K
AGE
56
TENURE
0.8 yrs

Scott Kernan

TITLE
Director
COMPENSATION
$158K
AGE
57
TENURE
0.7 yrs

Norman Carlson

TITLE
Director Emeritus
COMPENSATION
$50K
AGE
84
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • GEO Group insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Sell Richard Glanton Individual 07. Mar 19 07. Mar 19 -1,000 $21.25 $-21,253
12. Dec 18 Sell Christopher Wheeler Individual 10. Dec 18 10. Dec 18 -1,000 $23.01 $-23,008
26. Nov 18 Buy George Zoley Individual 21. Nov 18 21. Nov 18 50,000 $22.33 $1,116,645
14. Nov 18 Buy George Zoley Individual 09. Nov 18 12. Nov 18 120,240 $22.67 $2,698,992
31. Aug 18 Sell David Venturella Individual 30. Aug 18 30. Aug 18 -4,500 $25.55 $-114,975
30. Aug 18 Sell Richard Glanton Individual 28. Aug 18 28. Aug 18 -3,175 $25.19 $-79,968
08. Aug 18 Sell Anne Foreman Individual 06. Aug 18 06. Aug 18 -10,000 $25.17 $-250,796
15. Jun 18 Sell Richard Glanton Individual 14. Jun 18 14. Jun 18 -1,700 $24.68 $-41,956
01. Jun 18 Sell Shayn March Individual 30. May 18 30. May 18 -3,000 $25.13 $-75,383
X
Management checks
We assess GEO Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. GEO Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GEO News

Simply Wall St News

Investors In The GEO Group, Inc. (NYSE:GEO) Should Consider This, First

Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth. … With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if GEO Group is a new dividend aristocrat in the making. … There are a few simple ways to reduce the risks of buying GEO Group for its dividend, and we'll go through these below.

Simply Wall St -

Is It Too Late To Consider Buying The GEO Group, Inc. (NYSE:GEO)?

saw significant share price movement during recent months on the NYSE, rising to highs of $23.65 and falling to the lows of $18.34. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at GEO Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

A Closer Look At The GEO Group, Inc.'s (NYSE:GEO) Impressive ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows GEO Group has a return on equity of 14% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

You May Have Been Looking At The GEO Group, Inc. (NYSE:GEO) All Wrong

real estate investment trust (REIT) based in Boca Raton, United States. … Below, I'll look at a few important metrics to keep in mind as part of your research on GEO. … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation

Simply Wall St -

Is The GEO Group, Inc.'s (NYSE:GEO) CEO Paid At A Competitive Rate?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … The aim of all this is to consider the appropriateness of CEO pay levels. … How Does George Zoley's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Much Are The GEO Group, Inc. (NYSE:GEO) Insiders Spending On Buying Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … However, most countries require that the company discloses such transactions to the market. … That means that an insider was happy to buy shares at above the current price

Simply Wall St -

Can The GEO Group, Inc.'s (NYSE:GEO) ROE Continue To Surpass The Industry Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.14. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Does The GEO Group Inc's (NYSE:GEO) Share Price Indicate?

saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $25.76 and falling to the lows of $21.94. … A question to answer is whether GEO Group's current trading price of $22.64 reflective of the actual value of the? … Let’s take a look at GEO Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is The GEO Group Inc (NYSE:GEO) Excessively Paying Its CEO?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$5m. … As you can see, George Zoley is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St -

How To Look At The GEO Group Inc (NYSE:GEO)

real estate investment trust (REIT) based in Boca Raton, United States. … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities … These items can distort the bottom line and not necessarily reflective of GEO’s daily operations.

Simply Wall St -

GEO Company Info

Description

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, detention, and community reentry facilities around the globe. GEO is the world's leading provider of diversified correctional, detention, community reentry, and electronic monitoring services to government agencies worldwide with operations in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the ownership and/or management of 134 facilities totaling approximately 95,000 beds, including projects under development, with a growing workforce of approximately 23,000 professionals.

Details
Name: The GEO Group, Inc.
GEO
Exchange: NYSE
Founded: 1984
$2,551,387,715
119,112,405
Website: http://www.geogroup.com
Address: The GEO Group, Inc.
One Park Place,
Suite 700,
Boca Raton,
Florida, 33487,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GEO Common Stock New York Stock Exchange US USD 27. Jul 1994
DB GEG Common Stock Deutsche Boerse AG DE EUR 27. Jul 1994
DB GEG COM USD0.01 NEW Deutsche Boerse AG DE EUR 20. May 2019
Number of employees
Current staff
Staff numbers
22,000
GEO Group employees.
Industry
Specialized REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:54
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/02
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.