The GEO GroupMEX:GEO1 +3.56%54 ROA % is 4.01% as of Mar. 2026, which is 13% above its 10-year median of 3.55. 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 1,096 Business Services companies, The GEO Group ranks better than 72.17% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The GEO Group's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN2,765 Mil.
The GEO Group's average Total Assets over the quarter that ended in Mar. 2026 was MXN68,976 Mil. Therefore, The GEO Group's annualized ROA % for the quarter that ended in Mar. 2026 was 4.01%.
The historical rank and industry rank for The GEO Group's ROA % or its related term are showing as below:
MEX:GEO1'
s ROA % Range Over the Past 10 Years
Min: 0.87 Med: 3.55 Max: 7.28
Current: 7.28
During the past 13 years, The GEO Group's highest ROA % was 7.28%. The lowest was 0.87%. And the median was 3.55%.
MEX:GEO1's ROA % is ranked better than 72.17% of 1096
companies
in the Business Services industry
Industry Median: 3.455
vs MEX:GEO1: 7.28
The GEO Group (MEX:GEO1) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
The GEO Group ROA % Related Terms
The GEO Group ROA % Historical Data
* Premium members only.
The historical data trend for The GEO Group's ROA % 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.
For the Security & Protection Services subindustry, The GEO Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's ROA % distribution charts can be found below:
* The bar in red indicates where The GEO Group's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
The GEO Group (MEX:GEO1) has a ROA % of 4.01% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The GEO Group and its competitors. This is 13% above median its historical median of 3.55. Over the past decade, The GEO Group's ROA % has ranged from 0.87 to 7.28. According to the industry distribution chart, The GEO Group ranks #305 out of 1096 companies in the Business Services industry, placing it in the top 27.8%.
Is The GEO Group's ROA % too high?
The GEO Group's current ROA % of 4.01% is 13% above median its 10-year median of 3.55. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 7.28. The Business Services industry median ROA % is 3.46. The GEO Group's value of 4.01% is 16.1% above this industry median. Based on the distribution chart, The GEO Group ranks #305 out of 1096 companies in the Business Services industry, which is above the industry midpoint. 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 ROA % compare to CXW and BRC?
According to the Business Services industry distribution chart, The GEO Group ranks #305 out of 1096 companies for ROA %. This puts The GEO Group in the upper half of its industry. The industry median ROA % is 3.46. The GEO Group's value of 4.01% is 16.1% above this benchmark. Historically, The GEO Group's own ROA % has ranged from 0.87 to 7.28 over the past decade. While the company's 10-year median is 3.55 vs. the industry median of 3.46, 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 ROA % for a Business Services company?
The median ROA % among Business Services companies is 3.46, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The GEO Group's current ROA % of 4.01% is 16.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The GEO Group and its competitors. For the Business Services industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The GEO Group's current ROA % is 4.01%, which is 13% above median its own 10-year median of 3.55. 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 ROA % is 4.01%, which is 13% above median its 10-year median of 3.55 and 16.1% above the Business Services industry median of 3.46. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For The GEO Group (MEX:GEO1), the current ROA % is 4.01% 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:
ROA %: 4.01% (13% above median its 10-year median of 3.55)
GF Value™: MXN268.53 vs. price of MXN495.00 (84.3% above fair value)
Industry Position: 16.1% above the Business Services median (#305 of 1096)
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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