The Analyst Verdict: GEO Group In The Eyes Of 4 Experts

During the last three months, 4 analysts shared their evaluations of GEO Group GEO, revealing diverse outlooks from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $18.38, a high estimate of $19.00, and a low estimate of $17.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.85%.

Interpreting Analyst Ratings: A Closer Look

The standing of GEO Group among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to GEO Group. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of GEO Group compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for GEO Group's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of GEO Group's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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All You Need to Know About 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.

GEO Group's Economic Impact: An Analysis

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: GEO Group's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.42%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: GEO Group's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.11%, the company may face hurdles in effective cost management.

Return on Equity (ROE): GEO Group's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.45%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): GEO Group's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.51%, the company may face hurdles in achieving optimal financial returns.

Debt Management: GEO Group's debt-to-equity ratio stands notably higher than the industry average, reaching 1.42. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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