The GEO GroupMEX:GEO1 60 Return-on-Tangible-Equity is 24.39% as of Mar. 2026, which is 74% below its 10-year median of 92.11. GuruFocus rates MEX:GEO1 with a GF Score™ of 60/100 and a GF Value™ of MXN296.70 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,010 Business Services companies, The GEO Group ranks better than 85.35% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The GEO Group's annualized net income for the quarter that ended in Mar. 2026 was MXN2,765 Mil. The GEO Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN11,336 Mil. Therefore, The GEO Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.39%.
The historical rank and industry rank for The GEO Group's Return-on-Tangible-Equity or its related term are showing as below:
MEX:GEO1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.49 Med: 92.11 Max: 789.81
Current: 47.55
During the past 13 years, The GEO Group's highest Return-on-Tangible-Equity was 789.81%. The lowest was 7.49%. And the median was 92.11%.
MEX:GEO1's Return-on-Tangible-Equity is ranked better than 85.35% of 1010
companies
in the Business Services industry
Industry Median: 10.57
vs MEX:GEO1: 47.55
The GEO Group (MEX:GEO1) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The GEO Group Return-on-Tangible-Equity Related Terms
The GEO Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The GEO Group's Return-on-Tangible-Equity 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.
MEX:GEO1 vs BCO, BRC, ADT: Return-on-Tangible-Equity Comparison
For the Security & Protection Services subindustry, The GEO Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The GEO Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.39% mean?
The GEO Group (MEX:GEO1) has a Return-on-Tangible-Equity of 24.39% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The GEO Group and its competitors. This is 74% below median its historical median of 92.11. Over the past decade, The GEO Group's Return-on-Tangible-Equity has ranged from 7.49 to 789.81. According to the industry distribution chart, The GEO Group ranks #148 out of 1010 companies in the Business Services industry, placing it in the top 14.7%.
Is The GEO Group's Return-on-Tangible-Equity too high?
The GEO Group's current Return-on-Tangible-Equity of 24.39% is 74% below median its 10-year median of 92.11. Over the past 10 years, this metric has ranged from a low of 7.49 to a high of 789.81. The Business Services industry median Return-on-Tangible-Equity is 10.57. The GEO Group's value of 24.39% is 130.7% above this industry median. Based on the distribution chart, The GEO Group ranks #148 out of 1010 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to BCO and BRC?
According to the Business Services industry distribution chart, The GEO Group ranks #148 out of 1010 companies for Return-on-Tangible-Equity. This places The GEO Group in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.57. The GEO Group's value of 24.39% is 130.7% above this benchmark. Historically, The GEO Group's own Return-on-Tangible-Equity has ranged from 7.49 to 789.81 over the past decade. While the company's 10-year median is 92.11 vs. the industry median of 10.57, 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 Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The GEO Group's current Return-on-Tangible-Equity of 24.39% is 130.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The GEO Group and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The GEO Group's current Return-on-Tangible-Equity is 24.39%, which is 74% below median its own 10-year median of 92.11. 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 MXN296.70, compared to a current price of MXN510.00 — trading 71.9% above its estimated fair value. The current Return-on-Tangible-Equity is 24.39%, which is 74% below median its 10-year median of 92.11 and 130.7% above the Business Services industry median of 10.57. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The GEO Group (MEX:GEO1), the current Return-on-Tangible-Equity is 24.39% 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 MXN510.00 is trading 71.9% above its estimated GF Value™ of MXN296.70.
GuruFocus considers The GEO Group to be Significantly Overvalued.
Key valuation signals for MEX:GEO1:
Return-on-Tangible-Equity: 24.39% (74% below median its 10-year median of 92.11)
GF Value™: MXN296.70 vs. price of MXN510.00 (71.9% above fair value)
Industry Position: 130.7% above the Business Services median (#148 of 1010)
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.
60GF Score
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