The GEO GroupMEX:GEO1 +3.56%54 Interest Coverage is 2.33 as of Mar. 2026, which is 22% above its 10-year median of 1.91. GuruFocus rates MEX:GEO1 with a GF Score™ of 54/100 and a GF Value™ of MXN268.53 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 812 Business Services companies, The GEO Group ranks worse than 85.34% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. The GEO Group's
Operating Income
for the
three
months ended in Mar. 2026 was MXN1,610 Mil. The GEO Group's Interest Expense for the
three
months ended in Mar. 2026 was MXN-691 Mil.
The GEO Group's interest coverage for the quarter that ended in Mar. 2026 was 2.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The GEO Group's Interest Coverage or its related term are showing as below:
MEX:GEO1'
s Interest Coverage Range Over the Past 10 Years
Min: 1.61 Med: 1.91 Max: 2.33
Current: 2.07
MEX:GEO1's Interest Coverage is ranked worse than 85.34% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs MEX:GEO1: 2.07
The GEO Group (MEX:GEO1) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
The GEO Group Interest Coverage Related Terms
The GEO Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for The GEO Group's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:GEO1 vs BCO, BRC, ADT: Interest Coverage Comparison
For the Security & Protection Services subindustry, The GEO Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The GEO Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
The GEO Group (MEX:GEO1) has a Interest Coverage of 2.33 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The GEO Group and its competitors. This is 22% above median its historical median of 1.91. Over the past decade, The GEO Group's Interest Coverage has ranged from 1.61 to 2.33. According to the industry distribution chart, The GEO Group ranks #693 out of 812 companies in the Business Services industry, placing it in the top 85.3%.
Is The GEO Group's Interest Coverage too high?
The GEO Group's current Interest Coverage of 2.33 is 22% above median its 10-year median of 1.91. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 2.33. The Business Services industry median Interest Coverage is 12.98. The GEO Group's value of 2.33 is 82% below this industry median. Based on the distribution chart, The GEO Group ranks #693 out of 812 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, The GEO Group has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The GEO Group's Interest Coverage compare to BCO and BRC?
According to the Business Services industry distribution chart, The GEO Group ranks #693 out of 812 companies for Interest Coverage. This places The GEO Group in the lower half of its industry. The industry median Interest Coverage is 12.98. The GEO Group's value of 2.33 is 82% below this benchmark. Historically, The GEO Group's own Interest Coverage has ranged from 1.61 to 2.33 over the past decade. While the company's 10-year median is 1.91 vs. the industry median of 12.98, The GEO Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The GEO Group's current Interest Coverage of 2.33 is 82% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The GEO Group and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The GEO Group's current Interest Coverage is 2.33, which is 22% above median its own 10-year median of 1.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The GEO Group stock overvalued right now?
Based on GuruFocus' analysis, The GEO Group (MEX:GEO1) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN268.53, compared to a current price of MXN495.00 — trading 84.3% above its estimated fair value. The current Interest Coverage is 2.33, which is 22% above median its 10-year median of 1.91 and 82% below the Business Services industry median of 12.98. The GEO Group's overall GF Score™ is 54/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For The GEO Group (MEX:GEO1), the current Interest Coverage is 2.33 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The GEO Group (MEX:GEO1) Overvalued in 2026?
Based on GuruFocus' analysis, The GEO Group stock appears to be overvalued.
The current stock price of MXN495.00 is trading 84.3% above its estimated GF Value™ of MXN268.53.
GuruFocus considers The GEO Group to be Significantly Overvalued.
Key valuation signals for MEX:GEO1:
Interest Coverage: 2.33 (22% above median its 10-year median of 1.91)
GF Value™: MXN268.53 vs. price of MXN495.00 (84.3% above fair value)
Industry Position: 82% below the Business Services median (#693 of 812)
No single metric tells the full story. See the MEX:GEO1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The company operates in U.S, Australia and South Africa.
54GF Score
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