Assessing GEO Group: Insights From 4 Financial Analysts

GEO Group GEO underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $38.5, a high estimate of $55.00, and a low estimate of $30.00. This upward trend is evident, with the current average reflecting a 67.83% increase from the previous average price target of $22.94.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of GEO Group's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to GEO Group. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of GEO Group compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of GEO Group's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of GEO Group's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on GEO Group analyst ratings.

Unveiling the Story Behind GEO Group

The GEO Group Inc specializes in detention facilities and community reentry centers. It operates in four segments: U.S. Secure Services, which mainly encompasses U.S.-based secure services business; Electronic Monitoring and Supervision Services, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants; Reentry Services conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs; and International Services.

Financial Insights: GEO Group

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: GEO Group displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 0.06%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: GEO Group's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.36%, the company may face hurdles in effective cost management.

Return on Equity (ROE): GEO Group's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.03%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.72%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: GEO Group's debt-to-equity ratio is below the industry average at 1.36, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.