Latest news with #GEOGroup
Yahoo
7 days ago
- Business
- Yahoo
1 Profitable Stock Worth Your Attention and 2 to Avoid
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". A business making money today isn't necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that balances growth and profitability and two that may struggle to keep up. Two Stocks to Sell: Rapid7 (RPD) Trailing 12-Month GAAP Operating Margin: 3% Founded in 2000 with the idea that network security comes before endpoint security, Rapid7 (NASDAQ:RPD) provides software as a service that helps companies understand where they are exposed to cyber security risks, quickly detect breaches and respond to them. Why Do We Avoid RPD? Average billings growth of 4.6% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Estimated sales growth of 2% for the next 12 months implies demand will slow from its three-year trend Free cash flow margin is forecasted to shrink by 2.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors Rapid7's stock price of $22.68 implies a valuation ratio of 1.7x forward price-to-sales. If you're considering RPD for your portfolio, see our FREE research report to learn more. GEO Group (GEO) Trailing 12-Month GAAP Operating Margin: 12% With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa. Why Is GEO Risky? Flat sales over the last five years suggest it must find different ways to grow during this cycle Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 31.5% annually 8.9 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $25.50 per share, GEO Group trades at 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than GEO. One Stock to Buy: Cintas (CTAS) Trailing 12-Month GAAP Operating Margin: 22.8% Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America. Why Will CTAS Outperform? Annual revenue growth of 8.6% over the last two years beat the sector average and underscores the unique value of its offerings CTAS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities Cintas is trading at $213.01 per share, or 45.9x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Stocks We Like Even More The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Business Wire
15-07-2025
- Business
- Business Wire
The GEO Group Announces Date for Second Quarter 2025 Earnings Release and Conference Call
BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group, Inc. (NYSE:GEO) ("GEO") will release its second quarter 2025 financial results on Wednesday, August 6, 2025 before the market opens. GEO has scheduled a conference call and simultaneous webcast for 11:00 AM (Eastern Time) on Wednesday, August 6, 2025. Hosting the call for GEO will be George Zoley, Executive Chairman of the Board, J. David Donahue, Chief Executive Officer, and Mark Suchinski, Chief Financial Officer. To participate in the teleconference, please contact one of the following numbers 5 minutes prior to the scheduled start time: 1-877-250-1553 (U.S.) 1-412-542-4145 (International) In addition, a live audio webcast of the conference call may be accessed on the Webcasts section of GEO's investor relations home page at A webcast replay will remain available on the website for one year. A telephonic replay will also be available through August 13, 2025. The replay numbers are 1-877-344-7529 (U.S.) and 1-412-317-0088 (International). The passcode for the telephonic replay is 2104307. If you have any questions, please contact GEO at 1-866-301-4436.
Business Wire
14-07-2025
- Business
- Business Wire
The GEO Group Amends Senior Revolving Credit Facility
BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group, Inc. (NYSE: GEO) ('GEO' or the 'Company') announced today the closing of an amendment to the Company's Credit Agreement dated as of April 18, 2024 (the 'Amendment'). The Amendment increases GEO's Revolving Credit Facility (the 'Revolver') commitments from $310 million to $450 million and extends the Revolver's maturity to July 14, 2030. The Amendment further provides that interest will accrue on outstanding revolving credit loans at a rate determined with reference to the Company's total leverage ratio. As of today, revolving credit loans accruing interest at a SOFR based rate would accrue interest at the term SOFR reference rate for the applicable interest period plus 2.75% per annum, which is lower by 0.50% from the applicate rate prior to the Amendment. The Amendment also increases GEO's capacity to make restricted payments over the next five years. Prior to the closing of the Amendment, GEO repaid $132 million of the Term Loan B outstanding under the Credit Agreement. Further, as previously disclosed, GEO expects to use net proceeds from the sale of the GEO-owned Lawton Correctional Facility in Oklahoma, which is expected to close on July 25, 2025, to pay off additional senior secured debt, including the remaining balance of the Term Loan B outstanding under the Credit Agreement. These two transactions are expected to reduce GEO's total net debt to approximately $1.47 billion and position GEO to consider potential future capital returns. George C. Zoley, Executive Chairman of GEO, said, 'We are pleased with this recent amendment to upsize and extend our Revolving Credit Facility, which is an important step to position our Company to consider potential future capital returns and support our future financial needs. This transaction also shows the growing support we are receiving from our existing and new banking partners. Our management team and Board of Directors remain focused on the disciplined allocation of capital to enhance long-term value for our shareholders.' About The GEO Group The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO's diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's worldwide operations include the ownership and/or delivery of support services for 98 facilities totaling approximately 77,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 19,000 employees. Use of forward-looking statements This news release may contain 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission including its Form 10-K, 10-Q and 8-K reports. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Readers are strongly encouraged to read the full cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission, including those referenced above. GEO disclaims any obligation to update or revise any forward-looking statements, except as required by law.
Yahoo
10-07-2025
- Business
- Yahoo
GEO Group to Acquire San Diego Detention Facility for $60M
The GEO Group Inc. (NYSE:GEO) is one of the most promising stocks according to Wall Street analysts. On July 1, the GEO Group announced that it entered into a purchase agreement to acquire the 770-bed Western Region Detention Facility in San Diego, California, for $60 million. GEO currently leases this facility for ~$5.1 million annually, with the existing lease agreement set to expire on March 31, 2029. The San Diego Facility generates ~$57 million in annualized revenues for GEO, through an exclusive contract with the US Marshals Service. The acquisition of the San Diego Facility is anticipated to close on July 31 this year. The purchase is expected to be funded as a like-kind real estate property exchange using proceeds from the previously announced sale of the GEO-owned Lawton Correctional Facility in Oklahoma. The sale of the Lawton Facility is projected to close on July 25. Security guards in uniforms patrolling an area, standing for the company's safe and secure facilities. Following the completion of both the Lawton Facility sale and the San Diego Facility purchase, GEO expects to have ~$222 million in net proceeds. These proceeds are intended to be used for paying off senior secured debt, which includes about $300 million in floating-rate debt. The GEO Group Inc. (NYSE:GEO) owns, leases, operates, and manages secure facilities, processing centers, and community-based reentry facilities in the US, Australia, the UK, and South Africa. While we acknowledge the potential of GEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
The Intercept
10-07-2025
- Business
- The Intercept
The Private Prison Industry Looks Forward to Soaring Profits Thanks to Trump's Budget
The private prison industry saw its influence wane under Joe Biden, but it remains dominant in the business of immigration detention. So when President Donald Trump signed the so-called 'Big, Beautiful Bill' on July 4, dedicating $45 billion to immigration detention with a goal to double or triple the population behind bars, it was a huge payoff. The victory was in the works for years. A private prison company handed consulting and lobbying gigs to Trump's allies, its political action committee was the first to max out its donation to Trump, and industry executives had already made plans to reopen shuttered prisons — laying the groundwork for what they promised investors would be an incarceration bonanza. In the 2024 election cycle, employees and PACs affiliated with the publicly traded industry behemoths GEO Group and CoreCivic contributed overwhelmingly to Republicans and Trump. Republicans received 92 percent of $3.7 million in contributions affiliated with GEO Group and 96 percent of the $785,000 in contributions affiliated with CoreCivic, according to OpenSecrets, a nonpartisan, nonprofit research group that tracks official disclosures. When Trump won, the two companies gave $500,000 each to his inaugural committee. 'The private prison corporations were keenly aware of the implications of the then-Trump campaign's platform for mass deportations.' Even though the industry kept profiting from the Biden administration — despite a supposed ban on private prisons — one advocate said it was clear to her why companies went all-in on Trump. 'The private prison corporations were keenly aware of the implications of the then-Trump campaign's platform for mass deportations,' said Eunice Hyunhye Cho, a senior staff attorney at the American Civil Liberties Union's National Prison Project. 'There is no doubt that these private prison companies were keenly aware of the potential profits to be made under such a scheme.' Before the federal budget bill passed, private prison executives on earnings calls with investors were exultant about their upcoming business opportunities under the law — and held regular meetings with the Trump administration to pitch new plans on how to lock people up. Now, the White House hopes to get the bill's funding out the door quickly, in order to expand the middle part of a deportation pipeline that stretches from arrests at Home Depots to flights abroad. In a statement, the White House rejected the idea that the budget bill or any of Trump's immigration policies were shaped by industry. 'The only people who influence the President's decision-making are the American people. But leave it to the Fake News Intercept to pathetically and desperately try to attack agenda that the American people voted for – deportations of criminal illegal aliens,' Abigail Jackson, an administration spokesperson, wrote in an email. Days after his inauguration in 2021, Biden made a splash by announcing that the federal Bureau of Prisons, or BOP, would no longer house incarcerated people in private prisons. The supposed ban only affected a few thousand of the BOP's roughly 150,000-person population, and the private prison companies soon managed to find workarounds. More importantly, Biden's order did not touch the much larger number of people held in immigration detention, which is reserved mostly for people accused of committing civil violations such as illegal presence in the U.S. Three years into Biden's administration, about 90 percent of people in immigration detention were housed in private facilities. There were about 40,000 people in immigration detention by the end of his term. Many were detained in facilities owned or operated by CoreCivic and GEO Group. Both companies also have subsidiaries profiting off other parts of the immigration system, ranging from an electronic monitoring company GEO Group bought in 2010 to a transportation company owned by CoreCivic. Although they continued doing business with the Biden administration, private prison companies bristled at his at his attitude toward the industry. In addition to the millions in campaign cash the private prison industry funneled to Trump and Republicans, there were jobs for major figures in Trump's orbit. Tom Homan, the former acting director of U.S. Immigration and Customs Enforcement, had a consulting gig with GEO Group that was only made public this year. Pam Bondi, the former Florida attorney general, picked up work as a lobbyist for the company in 2019, shortly before she joined Trump's defense team at his first impeachment. Trump in his second term tapped Homan to serve as 'border czar' and Bondi as U.S. attorney general. While many industries with government work try to cozy up to former officials, Lauren-Brooke Eisen, the senior director of the Brennan Center's Justice Program and author of a book on the industry, said private prisons cultivated unusually close relationships. 'There's sort of always a revolving door between the private sector and the government, but what we're seeing here is, we're also seeing people with super close ties,' she said. In a statement, GEO Group did not directly address questions about the donations to the Trump campaign or its ties to high-ranking administration officials. 'We are proud of the role our company has played for 40 years to support the law enforcement mission of U.S. Immigration and Customs Enforcement,' a company spokesperson wrote. 'Over the last four decades, our innovative support service solutions have helped the federal government implement the policies of seven different Presidential Administrations.' CoreCivic, meanwhile, said that it welcomed 'the opportunity to support any political leaders who are open to the solutions our company provides to serious national challenges, including providing safe, humane care for people going through the civil immigration process and helping those in our criminal justice system prepare to return to our communities with the skills they need to be successful.' The donation to the inaugural committee, CoreCivic spokesperson Ryan Gustin said, 'is consistent with our past practice of civic participation in and support for the inauguration process, including contributions to inauguration activities for both Democrats and Republicans.' The White House rejected out of hand the idea that campaign contributions, or the work that top officials conducted for the industry while out of office, had anything to do with crafting the specifics of the budget bill. 'The One, Big, Beautiful bill provides the funding necessary to fulfill the President's promise to carry out the largest mass deportation operation in history. CoreCivic and GEO Group have received contracts under both Democrat and Republican administrations,' Jackson wrote. After Trump's first term, Homan hung up a shingle for a consulting firm that told prospective clients it had a 'track record of opening doors,' resulting in big state and federal contracts. As border czar, Homan has said he will not be involved in making decisions about individual contracts. Bondi has promised to consult ethics officials if any conflicts of interest come up, and a Justice Department spokesperson said she 'played no role in the provisions for additional funding for immigration detention.' Such denials do not sway Cho, the ACLU lawyer whose work includes representing people in immigration detention. 'Whatever those responses are doesn't belie the fact that these companies clearly are purchasing influence in order to benefit politically and financially,' she said. Citing reporting from The Intercept, Sen. Dick Durbin, D-Ill., in May called on Bondi to recuse herself from 'any and all' activities tied to immigration detention that could directly or indirectly benefit GEO Group. The administration has brushed off such critiques as it pushes ahead with its mass deportation plans. The Department of Homeland Security, which oversees ICE, says the budget law will allow it to secure 80,000 new detention beds and bring its total population over 100,000. GEO Group said in November that Trump's plans could help it fill 18,000 empty beds, translating into $400 million in additional annual revenue. CoreCivic said in February that it had pitched the federal government on plans for housing an extra 28,000 people. The companies will face competition from states like Florida, which is relying on federal reimbursements to build tent camps at places such as the so-called 'Alligator Alcatraz' facility in the Everglades intended to house 3,000 people. 'The $45 billion represents such an unprecedented broadening for federal prison funding for immigration.' Cho said she does not think such state facilities pose a business threat to the private prison companies, in large part because there is so much money to go around. 'Even state detention systems often depend on private prison companies for operation,' she said. 'The $45 billion represents such an unprecedented broadening for federal prison funding for immigration.' In recent weeks, the major private prison companies have continued to make announcements about their growing capacity – for detention and profit. CoreCivic announced last month that it had spent $67 million on a detention center in Virginia that it expects to produce an extra $40 million in annual revenue. If Homan has his way, many of the new detention centers springing up to fill the administration's demand will be under looser state regulations instead of more stringent federal standards. 'It is really scary that we are seeing a reduction of oversight, along with this idea that we should loosen the standards, with this huge increase in funding.' Stories of suffering behind bars are already proliferating as the detention population grows. Eisen noted that one of the Trump administration's first actions at the DHS was to decimate an oversight office meant to investigate allegations of wrongdoing. 'It is really scary that we are seeing a reduction of oversight, along with this idea that we should loosen the standards, with this huge increase in funding,' she said.
