The GEO Group, Inc. (GEO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The GEO Group, Inc.

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Why is The GEO Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 9.97%

With a growth in Net Profit of 48.83%, the company declared Very Positive results in Jun 25

The company has declared positive results in Jan 70 after 2 consecutive negative quarters
INTEREST COVERAGE RATIO(Q) Highest at 263.01
NET SALES(Q) Highest at USD 636.17 MM
EPS(Q) Highest at USD 0.21

With ROE of 8.42%, it has a very expensive valuation with a 2.93 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -38.17%, its profits have risen by 15.7% ; the PEG ratio of the company is 8.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The GEO Group, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The GEO Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

The GEO Group, Inc.

0.26%

0.53

48.20%

S&P 500

22.99%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.28%

EBIT Growth (5y)

15.23%

EBIT to Interest (avg)

2.10

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.82

Tax Ratio

11.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

44.37%

ROE (avg)

9.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.54

EV to EBIT

7.50

EV to EBITDA

5.21

EV to Capital Employed

1.57

EV to Sales

0.86

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

20.97%

ROE (Latest)

19.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(HY)

At USD 70.1 MM has Grown at 99.88%

INTEREST COVERAGE RATIO(Q)

Highest at 321.48

ROCE(HY)

Highest at 19.23%

RAW MATERIAL COST(Y)

Fallen by -8.64% (YoY

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 157.87 MM

PRE-TAX PROFIT(Q)

At USD 52.67 MM has Fallen at -44.78%

NET PROFIT(Q)

At USD 38.33 MM has Fallen at -46.96%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.7 times

Here's what is working for The GEO Group, Inc.

Interest Coverage Ratio

Highest at 321.48 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -8.64% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for The GEO Group, Inc.

Pre-Tax Profit

At USD 52.67 MM has Fallen at -44.78%

over average net sales of the previous four periods of USD 95.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 38.33 MM has Fallen at -46.96%

over average net sales of the previous four periods of USD 72.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 157.87 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Lowest at 5.7 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio