Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
The GEO Group has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for The GEO Group's Piotroski F-Score or its related term are showing as below:
GEO'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 5 Max: 8
Current: 6
During the past 13 years, the highest Piotroski F-Score of The GEO Group was 8. The lowest was 3. And the median was 5.
The GEO Group Piotroski F-Score Historical Data
The historical data trend for The GEO Group's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of The GEO Group's Piotroski F-Score
For the Security & Protection Services subindustry, The GEO Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The GEO Group's Piotroski F-Score Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where The GEO Group's Piotroski F-Score falls into.
How is the Piotroski F-Score calculated?
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
The GEO Group's current Net Income (TTM) was 40.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
The GEO Group's return on assets of this year was 0.01086798. The GEO Group's return on assets of last year was 0.03017152.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
The GEO Group's gearing of this year was 0.49239935. The GEO Group's gearing of last year was 0.49930115.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
The GEO Group's current ratio of this year was 1.26114596. The GEO Group's current ratio of last year was 1.3017442.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
The GEO Group's number of shares in issue this year was 130.518. The GEO Group's number of shares in issue last year was 123.278.
==> There is larger number of shares in issue this year. ==> Score 0.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
The GEO Group's gross margin of this year was 0.81778513. The GEO Group's gross margin of last year was 0.46698641.
==> This year's gross margin is higher. ==> Score 1.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
The GEO Group's asset turnover of this year was 0.66012998. The GEO Group's asset turnover of last year was 0.53551965.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
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1
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
The GEO Group has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The GEO Group (NYSE:GEO) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
The GEO Group Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of The GEO Group's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
The GEO Group Inc specializes in detention facilities and community reentry centers. It operates in four segments: U.S. Secure Services, which mainly encompasses U.S.-based secure services business; Electronic Monitoring and Supervision Services, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants; Reentry Services conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs; and International Services.
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