GEO Return On Equity vs. Net Income
| GEG Stock | EUR 26.56 0.84 3.07% |
For GEO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GEO to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The GEO Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GEO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The GEO Group over time as well as its relative position and ranking within its peers.
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GEO Group Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GEO's current stock value. Our valuation model uses many indicators to compare GEO value to that of its competitors to determine the firm's financial worth. The GEO Group is one of the top stocks in return on equity category among its peers. It is rated # 2 in net income category among its peers making up about 1,070,485,981 of Net Income per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the GEO's earnings, one of the primary drivers of an investment's value.GEO Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
GEO |
| = | 171.81 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
GEO Net Income Comparison
GEO is currently under evaluation in net income category among its peers.
GEO Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GEO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GEO will eventually generate negative long term returns. The profitability progress is the general direction of GEO's change in net profit over the period of time. It can combine multiple indicators of GEO, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEOs worldwide operations include the ownership andor management of 133 facilities totaling approximately 97,000 beds, including projects under development, with a growing workforce of approximately 23,000 professionals. GEO GROUP operates under REIT - Healthcare Facilities classification in Germany and is traded on Frankfurt Stock Exchange. It employs 23000 people.
GEO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GEO. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GEO position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GEO's important profitability drivers and their relationship over time.
Use GEO in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GEO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GEO will appreciate offsetting losses from the drop in the long position's value.GEO Pair Trading
The GEO Group Pair Trading Analysis
The ability to find closely correlated positions to GEO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GEO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GEO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The GEO Group to buy it.
The correlation of GEO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GEO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GEO Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GEO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your GEO position
In addition to having GEO in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Tips ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Tips ETFs theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Tips ETFs Theme or any other thematic opportunities.
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Other Information on Investing in GEO Stock
To fully project GEO's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GEO Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include GEO's income statement, its balance sheet, and the statement of cash flows.