Geo Group Intrinsic Value Calculation – GEO GROUP Reports 1.0% Increase in Total Revenue for Q2 FY2023
August 14, 2023
☀️Earnings Overview
GEO GROUP ($NYSE:GEO) reported total revenue of USD 593.9 million for the second quarter of FY2023, ending on June 30 2023, which was a 1.0% increase from the same period of the previous year. Net income, however, declined by 45.0% year over year to USD 29.6 million.
Analysis – Geo Group Intrinsic Value Calculation
GoodWhale is an excellent tool for analyzing the financials of GEO GROUP Inc. Our proprietary Valuation Line has calculated the intrinsic value of GEO GROUP share to be around $8.3. Currently, GEO GROUP stock is traded at a fair price of $7.4, which is 10.4% lower than its intrinsic value. This presents an excellent opportunity for investors to purchase GEO GROUP shares at a discounted price. It is important to note that the financials of GEO GROUP Inc. can change quickly, and the intrinsic value of its shares can also fluctuate considerably. As such, investors should always perform their own due diligence before making any investment decisions. GoodWhale is an excellent tool for tracking and understanding the financials of GEO GROUP Inc., and it can help in providing investors with the information they need to make informed decisions about their investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Geo Group. More…
| Total Revenues | Net Income | Net Margin |
| 2.44k | 143.37 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Geo Group. More…
| Operations | Investing | Financing |
| 237.38 | -10.05 | -742.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Geo Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.67k | 2.44k | 9.79 |
Key Ratios Snapshot
Some of the financial key ratios for Geo Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.1% | 14.0% | 16.0% |
| FCF Margin | ROE | ROA |
| 6.2% | 20.1% | 6.7% |
Peers
The GEO Group Inc. and its competitors, Morguard North American Residential Real Estate Investment Trust, Dream Residential REIT, and Sun Residential REIT, are all publicly traded companies that invest in real estate. All four companies are engaged in the business of acquiring, owning, and operating real estate properties.
– Morguard North American Residential Real Estate Investment Trust ($TSX:MRG.UN)
Morguard North American Residential Real Estate Investment Trust is a real estate investment trust that owns, operates, and invests in residential properties in the United States and Canada. The company has a portfolio of properties that includes apartments, townhomes, and single-family homes. Morguard North American Residential Real Estate Investment Trust is headquartered in Toronto, Canada.
– Dream Residential REIT ($TSX:DRR.U)
Sun Residential REIT is a publicly traded real estate investment trust that focuses on the acquisition, ownership, and management ofSun Communities, Inc.
Summary
GEO Group is a real estate investment trust (REIT) focused on investing in correctional and residential treatment facilities. Its second quarter earnings for FY2023 were USD 593.9 million in total revenue, a marginal 1.0% increase year over year. Net income, however, was USD 29.6 million, a decrease of 45.0% compared to the same period in the previous year.
Investor sentiment for GEO Group has been cautious as the company’s bottom line dropped sharply, while total revenue growth remains modest. With a focus on value investing and maximizing shareholder returns, shareholders are hoping the company will turn around its profitability soon to ensure long-term value.
Related Posts
Recent Posts
