Geo Valuation
| GEO Stock | USD 13.81 0.50 3.76% |
At this time, the firm appears to be undervalued. Geo Group retains a regular Real Value of $17.99 per share. The prevalent price of the firm is $13.81. Our model calculates the value of Geo Group from evaluating the firm fundamentals such as Return On Equity of 0.18, return on asset of 0.0493, and Current Valuation of 4.56 B as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Geo's valuation include:
Price Book 2.056 | Enterprise Value | Enterprise Value Ebitda 10.8291 | Price Sales 0.7917 | Forward PE 24.0385 |
Undervalued
Today
Please note that Geo's price fluctuation is not too volatile at this time. Calculation of the real value of Geo Group is based on 3 months time horizon. Increasing Geo's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Geo is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Geo Stock. However, Geo's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 13.81 | Real 17.99 | Target 29.5 | Hype 13.77 | Naive 14.31 |
The intrinsic value of Geo's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Geo's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Geo Group helps investors to forecast how Geo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Geo more accurately as focusing exclusively on Geo's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Geo's intrinsic value based on its ongoing forecasts of Geo's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Geo's closest peers.
Geo Cash |
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Geo Revenue by Product
Geo Total Value Analysis
Geo Group is currently forecasted to have company total value of 4.56 B with market capitalization of 2.08 B, debt of 1.73 B, and cash on hands of 76.9 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Geo fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.56 B | 2.08 B | 1.73 B | 76.9 M |
Geo Investor Information
About 90.0% of the company shares are owned by institutional investors. The book value of Geo was currently reported as 10.94. The company has Price/Earnings To Growth (PEG) ratio of 1.02. Geo Group last dividend was issued on the 22nd of January 2021. The entity had 3:2 split on the 25th of April 2017. Based on the analysis of Geo's profitability, liquidity, and operating efficiency, Geo Group may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0732 | 0.0978 |
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| Operating Income | 156.5 M | 257.5 M |
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Geo Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Geo has an asset utilization ratio of 68.47 percent. This suggests that the Company is making $0.68 for each dollar of assets. An increasing asset utilization means that Geo Group is more efficient with each dollar of assets it utilizes for everyday operations.Geo Profitability Analysis
Considering Geo's profitability and operating efficiency indicators, Geo's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Geo's ability to earn profits and add value for shareholders.Net Income | First Reported 1993-03-31 | Previous Quarter 173.9 M | Current Value 31.8 M | Quarterly Volatility 22.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.17 | 0.23 |
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| Net Profit Margin | 0.1 | 0.0967 |
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| Operating Profit Margin | 0.0732 | 0.0978 |
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| Pretax Profit Margin | 0.14 | 0.1292 |
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| Return On Assets | 0.0535 | 0.0662 |
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| Return On Equity | 0.14 | 0.1691 |
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For Geo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Geo Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Geo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Geo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Geo over time as well as its relative position and ranking within its peers.
Geo Earnings per Share Projection vs Actual
By analyzing Geo's earnings estimates, investors can diagnose different trends across Geo's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Geo Group is based on EPS before non-recurring items and includes expenses related to employee stock options.Geo Ownership Allocation
Geo Group has a total of 139.2 Million outstanding shares. The majority of Geo Group outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Geo to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Geo Group. Please pay attention to any change in the institutional holdings of Geo Group as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Geo Profitability Analysis
The company reported the last year's revenue of 2.63 B. Total Income to common stockholders was 254.37 M with profit before taxes, overhead, and interest of 663.07 M.About Geo Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Geo Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Geo Group based exclusively on its fundamental and basic technical indicators. By analyzing Geo's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Geo's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Geo. We calculate exposure to Geo's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Geo's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 663.1 M | 393.9 M | |
| Pretax Profit Margin | 0.13 | 0.14 | |
| Operating Profit Margin | 0.10 | 0.07 | |
| Net Profit Margin | 0.10 | 0.10 | |
| Gross Profit Margin | 0.23 | 0.17 |
Geo Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 139.7 M | |
| Quarterly Earnings Growth Y O Y | 1.091 | |
| Forward Price Earnings | 24.0385 |
Geo Current Valuation Indicators
Geo's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Geo's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Geo, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Geo's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Geo's worth.When determining whether Geo Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Geo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Geo Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Geo Group Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Geo Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Will Commercial Services & Supplies sector continue expanding? Could Geo diversify its offerings? Factors like these will boost the valuation of Geo. Market participants price Geo higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Geo data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 1.091 | Earnings Share 1.94 | Revenue Per Share | Quarterly Revenue Growth 0.165 | Return On Assets |
Investors evaluate Geo Group using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Geo's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Geo's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Geo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Geo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Geo's market price signifies the transaction level at which participants voluntarily complete trades.