The Geo Group, Inc. ($GEO) Cautious Buy or Hold to $35 Confident Investor Rating: Fair

Company name The Geo Group, Inc.
Stock ticker GEO
Live stock price [stckqut]GEO[/stckqut]
P/E compared to competitors Good


Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Good


Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $28.92
Target stock price (averages with growth) $40.72
Target stock price (averages with no growth) $44.24
Target stock price (manual assumptions) $33.7

The following company description is from Google Finance:

The GEO Group, Inc. is engaged in ownership, leasing and management of correctional, detention, and re-entry facilities and the provision of community-based services in the United States, Australia, South Africa, the United Kingdom and Canada. It operates in four segments: United States Corrections and Detention segment, which primarily encompasses United States-based privatized corrections and detention business; GEO Community Services segment, which consists of its community based services business, youth services business and electronic monitoring; International Services segment, which primarily consists of its privatized corrections and detention operations in South Africa, Australia and United Kingdom, and Facility Construction and Design segment primarily contracts with various states, local and federal agencies for the design and construction of facilities. In June 2013, it announced the acquisition of the 1,287-bed Joe Corley Detention Center in Montgomery County, Texas.


Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in The Geo Group, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $30.94

Growth: 0.12

Current EPS (TTM): $2.8

P/E: 11

Future EPS Calc: $4.93

Future Stock Price Calc: $54.28

Target stock price: $33.7

I hope that this makes you a better investor. [/s2If]

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