The GEO Group Inc

Find Ratings Reports
GEO : NYSE : Financial
$31.13 up 0.91 | 3.0%
Today's Range: 30.21 - 31.28
Avg. Daily Volume: 1646600.0
05/25/17 - 3:59 PM ET

Financial Analysis


GEO GROUP INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. GEO GROUP INC has strong liquidity. Currently, the Quick Ratio is 1.95 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.62% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)550.61510.19
EBITDA ($mil)95.9187.62
EBIT ($mil)66.9659.17
Net Income ($mil)40.432.35


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)451.471.53
Total Assets ($mil)4167.023543.03
Total Debt ($mil)2576.012203.49
Equity ($mil)1245.78991.65


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin24.6823.85
EBITDA Margin17.4117.17
Operating Margin12.1611.6
Sales Turnover0.530.54
Return on Assets3.764.03
Return on Equity12.5814.42
Debt Q1 FY17 Q1 FY16
Current Ratio2.011.62
Debt/Capital0.670.69
Interest Expense35.029.37
Interest Coverage1.912.01


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)123.6112.42
Div / share0.470.43
EPS0.350.29
Book value / share10.088.82
Institutional Own % n/a n/a
Avg Daily Volume1218467.0770979.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 51.52 for the Equity Real Estate Investment Trusts REITs industry and a discount compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 3.08 indicates valuation on par with the S&P 500 average of 3.00 and a discount versus the industry average of 3.57. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, GEO GROUP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GEO 22.25 Peers 51.52   GEO 105.34 Peers 18.90

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

GEO is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GEO is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GEO 19.68 Peers 62.39   GEO NM Peers 4.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

GEO is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

GEO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GEO 3.08 Peers 3.57   GEO 8.29 Peers 33.31

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GEO is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, GEO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GEO 1.73 Peers 7.95   GEO 15.25 Peers 9.98

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GEO is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

GEO has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades