- The revenue growth greatly exceeded the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 45.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio of 1.39 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, GEO's quick ratio is somewhat strong at 1.27, demonstrating the ability to handle short-term liquidity needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Services & Supplies industry and the overall market, GEO GROUP INC's return on equity is below that of both the industry average and the S&P 500.
NEW YORK ( TheStreet) -- The Geo Group (NYSE: GEO) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and generally poor debt management. Highlights from the ratings report include: