The GEO GroupFRA:GEG +1.16%60 Operating Margin % is 12.66% as of Mar. 2026, which is 4% above its 10-year median of 12.21. GuruFocus rates FRA:GEG with a GF Score™ of 60/100 and a GF Value™ of €14.39 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,070 Business Services companies, The GEO Group ranks better than 70.47% on this metric.
The GEO Group (FRA:GEG) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The GEO Group Operating Margin % Related Terms
The GEO Group Operating Margin % Historical Data
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The historical data trend for The GEO Group's Operating Margin % 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.
FRA:GEG vs CXW, BRC, BCO: Operating Margin % Comparison
For the Security & Protection Services subindustry, The GEO Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The GEO Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The GEO Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (FRA:GEG) has a Operating Margin % of 12.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The GEO Group and its competitors. This is near median its historical median of 12.21. Over the past decade, The GEO Group's Operating Margin % has ranged from 10.66 to 16.15. According to the industry distribution chart, The GEO Group ranks #316 out of 1070 companies in the Business Services industry, placing it in the top 29.5%.
Is The GEO Group's Operating Margin % too high?
The GEO Group's current Operating Margin % of 12.66% is near median its 10-year median of 12.21. Over the past 10 years, this metric has ranged from a low of 10.66 to a high of 16.15. The Business Services industry median Operating Margin % is 6.28. The GEO Group's value of 12.66% is 101.8% above this industry median. Based on the distribution chart, The GEO Group ranks #316 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, The GEO Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The GEO Group's Operating Margin % compare to CXW and BRC?
According to the Business Services industry distribution chart, The GEO Group ranks #316 out of 1070 companies for Operating Margin %. This puts The GEO Group in the upper half of its industry. The industry median Operating Margin % is 6.28. The GEO Group's value of 12.66% is 101.8% above this benchmark. Historically, The GEO Group's own Operating Margin % has ranged from 10.66 to 16.15 over the past decade. While the company's 10-year median is 12.21 vs. the industry median of 6.28, The GEO Group has consistently been above 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 Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.28, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The GEO Group's current Operating Margin % of 12.66% is 101.8% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The GEO Group and its competitors. For the Business Services industry, the median Operating Margin % is 6.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The GEO Group's current Operating Margin % is 12.66%, which is near median its own 10-year median of 12.21. 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 (FRA:GEG) is currently considered Significantly Overvalued. The stock's GF Value™ is €14.39, compared to a current price of €26.21 — trading 82.1% above its estimated fair value. The current Operating Margin % is 12.66%, which is near median its 10-year median of 12.21 and 101.8% above the Business Services industry median of 6.28. The GEO Group's overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The GEO Group (FRA:GEG), the current Operating Margin % is 12.66% 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 (FRA:GEG) Overvalued in 2026?
Based on GuruFocus' analysis, The GEO Group stock appears to be overvalued.
The current stock price of €26.21 is trading 82.1% above its estimated GF Value™ of €14.39.
GuruFocus considers The GEO Group to be Significantly Overvalued.
Key valuation signals for FRA:GEG:
Operating Margin %: 12.66% (near median its 10-year median of 12.21)
GF Value™: €14.39 vs. price of €26.21 (82.1% above fair value)
Industry Position: 101.8% above the Business Services median (#316 of 1070)
No single metric tells the full story. See the FRA:GEG 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.
60GF Score
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