NYSE:GEO

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Executive Summary

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


Snowflake Analysis

Very undervalued with questionable track record.


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

Stable Share Price: GEO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

GEO

-4.2%

US REITs

-4.1%

US Market


1 Year Return

-43.2%

GEO

-18.0%

US REITs

12.0%

US Market

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.


Shareholder returns

GEOIndustryMarket
7 Day-1.3%-4.2%-4.1%
30 Day-21.7%-2.6%-0.2%
90 Day-16.5%-5.9%2.8%
1 Year-35.1%-43.2%-14.7%-18.0%14.6%12.0%
3 Year-52.6%-65.4%8.5%-4.1%35.8%26.8%
5 Year-31.4%-58.1%35.5%8.4%75.2%55.6%

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

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: 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).


Next Steps

Future Growth

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

1.6%

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


Next Steps

Past Performance

How has GEO Group performed over the past 5 years?

2.4%

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.


Next Steps

Financial Health

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).


Balance Sheet


Next Steps

Dividend

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

15.32%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

George Zoley (70 yo)

26.75yrs

Tenure

US$6,046,112

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 ($USD6.05M) is above average for companies of similar size in the US market ($USD3.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Zoley
Founder26.75yrsUS$6.05m2.86%
$ 30.3m
Brian Evans
Senior VP & CFO11.17yrsUS$2.69m0.098%
$ 1.0m
David Venturella
Senior Vice President of Client Relations6.75yrsUS$1.35m0.051%
$ 538.2k
Ann Schlarb
Senior VP & President of GEO Care6.25yrsUS$1.46m0.052%
$ 552.3k
J. Donahue
Consultant0.25yrUS$2.08m0.057%
$ 599.2k
Ronald Brack
Executive VP11.17yrsno data0.034%
$ 364.0k
Jose Rosario
Executive VPno datano datano data
Pablo Paez
Executive Vice President of Corporate Relationsno datano datano data
Joe Negron
Senior VP1.75yrsno datano data
Christopher Ryan
Executive Vice President of Human Resourcesno datano datano data
Amber Martin
Executive Vice President of Contract Administrationno datano datano data
Pieter Bezuidenhout
Managing Director of GEO Australiano datano datano data

6.8yrs

Average Tenure

58yo

Average Age

Experienced Management: GEO's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Zoley
Founder26.75yrsUS$6.05m2.86%
$ 30.3m
Richard Glanton
Lead Independent Director9.75yrsUS$373.72k0.0018%
$ 19.4k
Anne Foreman
Independent Director18.75yrsUS$257.72k0.013%
$ 133.2k
Christopher Wheeler
Independent Director10.58yrsUS$269.72k0.021%
$ 218.0k
Guido Van Hauwermeiren
Independent Director2.25yrsUS$255.72k0.0018%
$ 18.8k
Jose Gordo
Director1yrUS$26.75kno data
Julie Myers-Wood
Independent Director6.25yrsUS$246.72k0.014%
$ 150.5k
Scott Kernan
Director2.08yrsUS$248.72k0.0018%
$ 18.8k
Duane Helkowski
Director0.25yrno datano data

6.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: GEO's board of directors are considered experienced (6.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • 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


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEONYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1994
GEGDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1994
GEO1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1994

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:17
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.