The GEO Group, Inc. (NYSE:GEO) has a current MF Rank of 7281. The Magic Formula was developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price.
Investors often closely follow fundamental and technical data. Even with all the evidence, it can be tough to determine if the economy and the markets are preparing for a whole new breakout run. With the recent trend resulting in a series of new all-time record highs, investors will have to put the pieces together to try and gauge how long the second longest bull market in history will continue. Some professionals are still wondering if the next recession is looming, and if a bear market is right around the corner. Investors commonly strive to locate the highest probability of success. The next goal may be to capitalize on what could become the most interesting part of the record bull market. Investors will most likely be concentrating on what has proven to work in the past, which may offer a better idea as to how successful the strategies will be heading into the second half of the year and beyond.
Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of The GEO Group, Inc. (NYSE:GEO) is 1.656689. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.
The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of The GEO Group, Inc. (NYSE:GEO) is 1.246221. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.
The Return on Invested Capital (aka ROIC) for The GEO Group, Inc. (NYSE:GEO) is 0.099963. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of The GEO Group, Inc. (NYSE:GEO) is 10.513916. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of The GEO Group, Inc. (NYSE:GEO) is 0.097965.
The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of The GEO Group, Inc. (NYSE:GEO) is 0.103503. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of The GEO Group, Inc. NYSE:GEO is 0.05526. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.
Investors often struggle with keeping their emotions in check when approaching the stock market. New investors can have a tendency to sell off winners too quick as well as hold onto losers for way too long. Some will argue that it is never a bad thing to take profits when they are on the table, but this can leave the investor with a large amount of regret if the stock continues to surge after selling. On the other end, investors may hold onto losers for way too long hoping for a bounce back. Holding out for better days can lead to even more exaggerated losses that can leave the investor with an even bigger feeling of regret. Battling to keep emotions separated from important investing decisions can be a big plus for investors over the long haul. Of course, this idea is easier to preach and much harder to follow.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of The GEO Group, Inc. (NYSE:GEO) is 31. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of The GEO Group, Inc. (NYSE:GEO) is 21.
Investors may be interested in viewing the Gross Margin score on shares of The GEO Group, Inc. (NYSE:GEO). The name currently has a score of 2.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.
The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of The GEO Group, Inc. (NYSE:GEO) is 8113. The lower the ERP5 rank, the more undervalued a company is thought to be.
C-Score – Montier
The GEO Group, Inc. (NYSE:GEO) currently has a Montier C-score of 3.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.
At the time of writing, The GEO Group, Inc. (NYSE:GEO) has a Piotroski F-Score of 5. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.
Investors may have a solid plan in place to start trading the equity market. Sometimes, these plans never get to be fully realized because of the lack of discipline in the early stages. When a new investor goes into the red right out the gate, there can be a tendency to take on too much risk trying to get back to even. This may result in the investor abandoning the plan and making too many unreasonable trades with exorbitant expectations. Finding the self control to not get discouraged with early losses may help the investor stick to the plan and eventually start achieving longer-term goals.
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