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GEOThe GEO Group, Inc.
$30.25$4.0B
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  3. GEO
  4. Financial Ratios

The GEO Group, Inc. (GEO) Financial Ratios

Latest Ratios: P/E Ratio 16.6x · EV/EBITDA 14.6x · ROE 17.9%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

GEO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$4.0B$2.3B$3.8B$1.3B$1.3B$936M$1.1B$2.0B$2.4B$2.9B$2.7B
Enterprise Value$5.7B$3.9B$5.5B$3.1B$3.3B$3.5B$3.8B$4.8B$5.1B$5.4B$5.0B
P/E Ratio →16.628.86127.1815.049.3613.369.4311.8616.4219.5018.01
P/S Ratio1.530.861.550.560.560.410.450.801.021.261.23
P/B Ratio2.811.502.811.041.150.961.171.992.292.382.74
P/FCF——22.946.326.494.393.198.9730.1812.26—
P/OCF55.2931.0215.494.704.523.312.415.868.677.48—

P/E links to full P/E history page with 30-year chart

GEO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.492.261.301.401.551.631.942.192.362.30
EV / EBITDA14.6110.0712.586.556.428.2510.5111.1013.0314.3613.20
EV / EBIT22.027.8123.938.798.4110.8315.2414.8417.0217.8418.05
EV / FCF——33.5414.7916.0816.3711.4921.8164.6723.00—

GEO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin25.2%25.2%100.0%27.7%30.0%27.8%24.6%25.0%24.7%24.9%24.3%
Operating Margin9.8%9.8%12.8%14.6%16.2%12.8%9.8%12.2%11.4%11.0%12.2%
Net Profit Margin9.7%9.7%1.3%4.4%7.2%3.4%4.8%6.7%6.2%6.5%6.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE17.9%17.9%2.4%8.7%16.1%8.2%11.8%16.4%13.0%13.5%15.0%
ROA6.8%6.8%0.9%2.9%4.1%1.7%2.6%3.9%3.4%3.7%4.1%
ROIC6.2%6.2%7.6%8.5%8.6%6.0%4.6%6.0%5.3%5.3%6.2%
ROCE7.6%7.6%9.5%10.7%10.3%7.0%5.8%8.1%7.1%7.0%8.2%

GEO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.151.151.361.461.783.143.342.882.642.152.48
Debt / EBITDA4.454.454.153.954.017.248.376.617.036.936.36
Net Debt / Equity—1.101.301.391.702.623.032.852.612.092.41
Net Debt / EBITDA4.274.273.983.753.836.047.596.536.956.716.18
Debt / FCF——10.618.479.5911.998.3012.8434.4810.75—
Interest Coverage3.123.121.201.632.402.491.982.151.992.032.16

GEO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.012.011.471.211.272.491.731.370.851.571.38
Quick Ratio2.012.011.471.211.272.491.731.370.851.571.38
Cash Ratio0.190.190.230.210.221.340.690.080.040.220.13
Asset Turnover—0.680.670.650.630.500.530.570.550.540.58
Inventory Turnover———————————
Days Sales Outstanding—82.3156.6358.9963.9560.1857.3064.2472.1865.8097.18

GEO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield—————3.3%20.3%11.7%9.6%8.0%7.3%
Payout Ratio—————39.4%191.2%139.6%158.2%155.5%131.0%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield6.0%11.3%0.8%6.6%10.7%7.5%10.6%8.4%6.1%5.1%5.6%
FCF Yield——4.4%15.8%15.4%22.8%31.3%11.1%3.3%8.2%—
Buyback Yield2.3%4.0%0.0%0.0%0.0%0.0%0.8%0.2%4.0%0.0%48.0%
Total Shareholder Yield2.3%4.0%0.0%0.0%0.0%3.3%21.2%11.9%13.6%8.0%55.3%
Shares Outstanding—$140M$134M$124M$122M$121M$120M$119M$121M$121M$111M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowDeteriorating
Top Statement Risk

Regulatory and refinancing exposure

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Political Discount Masks Operational Value

According to current market data, GEO trades at a forward EV/EBITDA of 9.38x, which appears to incorporate a significant political risk discount compared to broader industrial peers, suggesting that investors are pricing in potential legislative volatility rather than the firm's underlying cash-generating capability from its technology-enabled services.

The divergence between the TTM P/E of 16.68x and the forward P/E of 24.73x implies that the market anticipates a contraction in earnings or increased costs in the near term. This valuation profile warrants caution, as it suggests that the market remains skeptical of the company's ability to sustain its current earnings trajectory without further regulatory headwinds.

Capital Efficiency Constrained by Assets

Based on reported financial statements, GEO's ROIC has remained consistently low, hovering near 2% over the last ten quarters, which indicates that the company is struggling to generate meaningful returns on its heavy investment in specialized secure facilities and the associated technological infrastructure of its monitoring segment.

The persistent gap between ROIC and the company's cost of capital suggests that the firm is currently destroying value rather than compounding it. Investors should monitor whether the pivot toward electronic monitoring can eventually drive higher capital efficiency, as the current asset-heavy model appears to be a structural drag on returns.

Working Capital Volatility Hinders Liquidity

As indicated by recent quarterly filings, the company's DSO has fluctuated between 55 and 74 days, reflecting the inherent unpredictability of government payment cycles and the challenges of managing working capital within a business model that is heavily dependent on large-scale, multi-year federal service contracts.

The lack of consistent improvement in the cash conversion cycle suggests that operational efficiency is frequently disrupted by external administrative factors. This volatility complicates the company's ability to forecast liquidity needs, making it more reliant on external financing to bridge gaps during periods of delayed government disbursements.

Debt Burden Limits Strategic Flexibility

According to the latest balance sheet data, the company maintains a debt-to-EBITDA ratio exceeding 13x in recent periods, which highlights a highly strained leverage profile that leaves little room for error in a volatile interest rate environment and necessitates a focus on debt reduction over growth.

While the D/E ratio has shown a modest downward trend, the absolute level of debt remains a primary risk factor that could constrain future capital allocation. The interest coverage ratio, which has dipped as low as 1.48x, suggests that the company's ability to service its obligations is precarious and highly sensitive to operational performance.

Misapplication of Traditional REIT Metrics

As reported in financial analysis, the most commonly misapplied metric for GEO is the traditional REIT-based FFO, which fails to account for the company's current C-Corp status and the significant non-cash impairment risks associated with its specialized, politically sensitive real estate assets in the current regulatory climate.

Investors should instead focus on Adjusted EBITDA and free cash flow, as these metrics better capture the actual cash-generating capacity of the business after accounting for necessary maintenance capital expenditures. Relying on legacy REIT valuation frameworks obscures the reality of the company's current debt-servicing requirements and its transition toward a technology-integrated service model.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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GEO — Frequently Asked Questions

Quick answers to the most common questions about buying GEO stock.

What is The GEO Group, Inc.'s P/E ratio?

The GEO Group, Inc.'s current P/E ratio is 16.6x. The historical average is 26.0x. This places it at the 53th percentile of its historical range.

What is The GEO Group, Inc.'s EV/EBITDA?

The GEO Group, Inc.'s current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.2x.

What is The GEO Group, Inc.'s ROE?

The GEO Group, Inc.'s return on equity (ROE) is 17.9%. The historical average is 13.0%.

Is GEO stock overvalued?

Based on historical data, The GEO Group, Inc. is trading at a P/E of 16.6x. This is at the 53th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are The GEO Group, Inc.'s profit margins?

The GEO Group, Inc. has 25.2% gross margin and 9.8% operating margin.

How much debt does The GEO Group, Inc. have?

The GEO Group, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.