Last Updated: 19 Sep 2024
Executive Summary
Geo Group Inc. (GEO) is a leading real estate investment trust (REIT) specializing in secure facilities, processing centers, and community re-entry centers. The company operates in the United States, Australia, South Africa, and the United Kingdom. GEO's latest stock price is $12.51, and analysts have a consensus target price of $17.95. The stock has a forward P/E ratio of 10.44 and a dividend yield of 0%.
Company Overview
GEO Group Inc. was founded in 1984 and is headquartered in Boca Raton, Florida. The company owns and operates a portfolio of over 100 facilities with a total capacity of over 70,000 beds. GEO's facilities are used to house inmates, detainees, and other individuals who are in the custody of government agencies.
Fundamental Analysis
GEO Group Inc.'s financial performance has been mixed in recent years. The company's revenue has grown steadily, but its earnings have been volatile. In 2023, GEO reported revenue of $2.42 billion and net income of $45.3 million. The company's EBITDA was $452.7 million, and its net income margin was 1.65%.
GEO's balance sheet is relatively strong. The company has $1.75 billion in cash and equivalents and $3.2 billion in total debt. GEO's debt-to-equity ratio is 1.39, which is in line with the industry average.
Technical Analysis
GEO Group Inc.'s stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 30, which indicates that it is oversold.
Short Term Outlook
GEO Group Inc.'s stock price is likely to remain under pressure in the short term. The company's earnings are expected to decline in 2024, and the stock market is currently in a correction. Investors should consider waiting for a more favorable entry point before buying GEO stock.
Long Term Outlook
GEO Group Inc.'s long-term outlook is more positive. The company's revenue is expected to grow in the coming years, and its earnings are expected to recover. GEO's stock price is likely to appreciate over the long term as the company's fundamentals improve.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on GEO Group Inc. stock. The average analyst target price is $17.95, which represents a potential upside of 43.4% from the current price.
