Geo Group Inc. (GEO:NYE) Fundamental Analysis is Bullish, 10 Positive Signals detected

STA Research
by: STA Research
Geo Group Inc.

Based on the Geo Group stock forecasts from 1 analysts, the average analyst Geo stock price target is $10 over the next 12 months. Geo Group Inc’s average analyst rating is Speculative. Stock Target Advisor’s own stock analysis of Geo Group stock is Slightly Bullish, which is based on 10 positive signals and 7 negative signals. At the last closing, Geo stock price was USD 7.60Geo stock price has changed by +0.77% over the past week, +1.15% over the past month and -10.38% over the last year.

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

 

What we like:

Low volatility:

The annual returns of Geo Group stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns:

Geo Group stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings:

Geo stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value:

Geo stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check Geo stock news and its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis:

Geo stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check Geo stock news and its financial performance to make sure there is no specific reason.

Superior return on assets:

Geo stock forecast shows that the company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

Geo stock news has shown that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Geo stock news has shown that the company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

Geo stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio:

Geo stock price is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization:

Geo stock price is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of Geo Group stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged:

Geo Group stock is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Geo stock news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth:

Geo Group stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

Geo stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth:

Geo stock has shown below median dividend growth in the previous 5 years compared to its sector.

Disclaimer

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