GEO Group Stock Analysis


GEO Group Stock Analysis

Business Description:

  • As of 1Q21 (March 2021)

GEO Group Stock Analysis

GEO Group Stock Analysis

Catalysts:

  • Moat with a single large competitor, CoreCivic (CXW)

  • Southern Border Crisis with increased apprehensions from ICE (under Department of Homeland Security - not affected by Executive Order)

  • Heavily shorted with 21% of shares outstanding short


Risks:

  • President Joe Biden issued an Executive Order, preventing the DOJ to renew its contracts with private prisons (Negatively affects revenues from BOP and USMS)

  • Negative public view

  • Private Prison population in decline

  • Banks unwilling to loan money to private prisons

  • Refinancing huge debt might be difficult

  • Cut dividends and might lose REIT status

  • Political risk


Financial Analysis:


GEO Group Stock Analysis

Continue to the Full Analysis: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/35735563



GEO Group stock analysis

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