The GEO Group Inc

Find Ratings Reports
GEO : NYSE : Financial
$29.99 -0.2 | -0.66%
Today's Range: 29.55 - 30.48
Avg. Daily Volume: 906300.0
07/21/17 - 4:00 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

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
Interest Expense35.029.37
Interest Coverage1.912.01

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)123.6112.42
Div / share0.470.43
Book value / share10.088.82
Institutional Own % n/a n/a
Avg Daily Volume895932.01087073.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 52.73 for the Equity Real Estate Investment Trusts REITs industry and a discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 3.00 indicates valuation on par with the S&P 500 average of 3.07 and a discount versus the industry average of 3.67. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GEO 21.67 Peers 52.73   GEO 102.59 Peers 19.56

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
GEO 19.23 Peers 53.89   GEO NM Peers 4.92

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GEO 3.00 Peers 3.67   GEO 8.29 Peers 33.36

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GEO 1.68 Peers 8.15   GEO 15.25 Peers 10.08

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