GEO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. GEO has a medium profitability rating, but doesn't score so well on its financial health evaluation. GEO has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

GEO had positive earnings in the past year.
In the past year GEO had a positive cash flow from operations.
In the past 5 years GEO has always been profitable.
In the past 5 years GEO always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 6.23%, GEO is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
With a decent Return On Equity value of 15.60%, GEO is doing good in the industry, outperforming 77.50% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.18%, GEO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
GEO had an Average Return On Invested Capital over the past 3 years of 7.94%. This is below the industry average of 10.58%.

		Industry Rank	Sector Rank
ROA	6.23%
ROE	15.6%
ROIC	6.18%

ROA(3y)2.34%

ROA(5y)2.22%

ROE(3y)7.12%

ROE(5y)8.19%

ROIC(3y)7.94%

ROIC(5y)6.71%

1.3 Margins

GEO has a better Profit Margin (9.38%) than 85.00% of its industry peers.
In the last couple of years the Profit Margin of GEO has declined.
With a decent Operating Margin value of 11.03%, GEO is doing good in the industry, outperforming 72.50% of the companies in the same industry.
In the last couple of years the Operating Margin of GEO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 25.51%, GEO is in line with its industry, outperforming 42.50% of the companies in the same industry.
In the last couple of years the Gross Margin of GEO has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	11.03%
PM (TTM)	9.38%
GM	25.51%

OM growth 3Y0.06%

OM growth 5Y1.08%

PM growth 3Y-26.63%

PM growth 5Y-28.78%

GM growth 3Y-1.24%

GM growth 5Y1.46%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GEO is destroying value.
Compared to 1 year ago, GEO has more shares outstanding
GEO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GEO has an improved debt to assets ratio.

2.2 Solvency

GEO has an Altman-Z score of 1.76. This is a bad value and indicates that GEO is not financially healthy and even has some risk of bankruptcy.
GEO has a Altman-Z score of 1.76. This is comparable to the rest of the industry: GEO outperforms 45.00% of its industry peers.
GEO has a debt to FCF ratio of 58.99. This is a negative value and a sign of low solvency as GEO would need 58.99 years to pay back of all of its debts.
GEO's Debt to FCF ratio of 58.99 is in line compared to the rest of the industry. GEO outperforms 46.25% of its industry peers.
GEO has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, GEO is not doing good in the industry: 67.50% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.02
Debt/FCF	58.99
Altman-Z	1.76

ROIC/WACC0.66

WACC9.37%

2.3 Liquidity

GEO has a Current Ratio of 1.62. This is a normal value and indicates that GEO is financially healthy and should not expect problems in meeting its short term obligations.
GEO's Current ratio of 1.62 is in line compared to the rest of the industry. GEO outperforms 57.50% of its industry peers.
A Quick Ratio of 1.62 indicates that GEO should not have too much problems paying its short term obligations.
The Quick ratio of GEO (1.62) is better than 65.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	1.62

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

GEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.68%.
GEO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.77% yearly.
Looking at the last year, GEO shows a very negative growth in Revenue. The Revenue has decreased by -16.47% in the last year.
The Revenue has been decreasing by -0.44% on average over the past years.

EPS 1Y (TTM)-18.68%

EPS 3Y-19.54%

EPS 5Y-30.77%

EPS Q2Q%19.05%

Revenue 1Y (TTM)-16.47%

Revenue growth 3Y2.41%

Revenue growth 5Y-0.44%

Sales Q2Q%13.13%

3.2 Future

GEO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.69% yearly.
GEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.

EPS Next Y14.92%

EPS Next 2Y35.5%

EPS Next 3Y26.69%

EPS Next 5YN/A

Revenue Next Year6.86%

Revenue Next 2Y10.87%

Revenue Next 3Y7.34%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.07, which means the current valuation is very expensive for GEO.
Compared to the rest of the industry, the Price/Earnings ratio of GEO indicates a somewhat cheap valuation: GEO is cheaper than 65.00% of the companies listed in the same industry.
GEO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.47, which indicates a correct valuation of GEO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GEO indicates a rather cheap valuation: GEO is cheaper than 83.75% of the companies listed in the same industry.
GEO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	25.07
Fwd PE	13.47

4.2 Price Multiples

71.25% of the companies in the same industry are more expensive than GEO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GEO is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	98.02
EV/EBITDA	9.67

4.3 Compensation for Growth

GEO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GEO may justify a higher PE ratio.
GEO's earnings are expected to grow with 26.69% in the coming years. This may justify a more expensive valuation.