Monday, April 12, 2021
The GEO Group, Inc. (GEO)
Contract Aging: A Deeper Dive
With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A Deeper Dive. We took a deeper dive into GEO’s ability to repay its debt. We believe the Company is positioned to handle its debt under nearly any circumstance. Although the executive orders have increased uncertainty around GEO’s business, we continue to believe, for a number of reasons, that the USMS issues will ultimately be resolved in a manner that the Company can live with. While the loss of the BoP business will hurt, it is not fatal, in our view.
A Stable Business. In spite of the year-in and year-out changes to its business, including the loss of customers in the past, GEO generates a remarkably stable level of cash flows. We believe the long-term nature of many of its contracts help isolate the Company from a massive run-off of business in a short period of time …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
