GEO Group
Market Cap
US$689.6m
Last Updated
2021/04/11 22:17 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with concerning outlook.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: GEO's weekly volatility (10%) has been stable over the past year.
Market Performance
7 Day Return
-26.3%
GEO
0.3%
US REITs
2.1%
US Market
1 Year Return
-59.4%
GEO
18.3%
US REITs
56.3%
US Market
Return vs Industry: GEO underperformed the US REITs industry which returned 18.3% over the past year.
Return vs Market: GEO underperformed the US Market which returned 56.3% over the past year.
Shareholder returns
| GEO | Industry | Market | |
|---|---|---|---|
| 7 Day | -26.3% | 0.3% | 2.1% |
| 30 Day | -29.8% | 2.5% | 2.4% |
| 90 Day | -34.2% | 14.5% | 6.8% |
| 1 Year | -53.6%-59.4% | 23.3%18.3% | 59.1%56.3% |
| 3 Year | -64.0%-73.8% | 41.9%24.7% | 65.7%55.1% |
| 5 Year | -59.3%-74.7% | 46.8%17.2% | 122.3%97.7% |
Long-Term 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
4 days ago | Simply Wall St
What Would Shareholders Who Purchased GEO Group's(NYSE:GEO) Stock Five Years Ago Be Earning on Their Investment Today?4 weeks ago | Simply Wall St
Should You Be Impressed By The GEO Group, Inc.'s (NYSE:GEO) ROE?1 month ago | Simply Wall St
How Much Are The GEO Group, Inc. (NYSE:GEO) Insiders Spending On Buying Shares?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 ($5.67) is trading below our estimate of fair value ($21.02)
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 (6x) compared to the US REITs industry average (46.5x).
PE vs Market: GEO is good value based on its PE Ratio (6x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: GEO is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: GEO is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.8x).
Future Growth
How is GEO Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GEO's forecast earnings growth (5.4% per year) is above the savings rate (2%).
Earnings vs Market: GEO's earnings (5.4% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: GEO's earnings are forecast to grow, but not significantly.
Revenue vs Market: GEO's revenue is expected to decline over the next 3 years (-4.5% per year).
High Growth Revenue: GEO's revenue is forecast to decline over the next 3 years (-4.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GEO's Return on Equity is forecast to be low in 3 years time (13%).
Past Performance
How has GEO Group performed over the past 5 years?
-0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GEO has high quality earnings.
Growing Profit Margin: GEO's current net profit margins (4.8%) are lower than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: GEO's earnings have declined by 0.4% 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 (-32.1%) over the past year, making it difficult to compare to the REITs industry average (-4.4%).
Return on Equity
High ROE: GEO's Return on Equity (12.4%) is considered low.
Financial Health
How is GEO Group's financial position?
Financial Position Analysis
Short Term Liabilities: GEO's short term assets ($711.3M) exceed its short term liabilities ($411.3M).
Long Term Liabilities: GEO's short term assets ($711.3M) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: GEO's debt to equity ratio (319.7%) is considered high.
Reducing Debt: GEO's debt to equity ratio has increased from 209.5% to 319.7% over the past 5 years.
Debt Coverage: GEO's debt is not well covered by operating cash flow (15.1%).
Interest Coverage: GEO's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Dividend
What is GEO Group current dividend yield, its reliability and sustainability?
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.
Current Payout to Shareholders
Dividend Coverage: GEO is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GEO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.0yrs
Average management tenure
CEO
George Zoley (70 yo)
27.25yrs
Tenure
US$2,041,894
Compensation
Mr. George C. Zoley, Ph.D., Founded The Geo Group, Inc. (formerly known as Wackenhut Corrections Corp.) in 1984 and has been its Chairman and Chief Executive Officer since May 2002 and April 1994 respectiv...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD2.04M) is about average for companies of similar size in the US market ($USD2.16M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GEO's management team is seasoned and experienced (7 years average tenure).
Board Members
Experienced Board: GEO's board of directors are considered experienced (6.8 years average tenure).
Ownership
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
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$689.645m
- Shares outstanding: 121.63m
- Website: https://www.geogroup.com
Number of Employees
Location
- The GEO Group, Inc.
- 4955 Technology Way
- Boca Raton
- Florida
- 33431
- United States
Listings
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:17 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.