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The GEO GroupMEX:GEO1 +7.11%52 ROC (Joel Greenblatt) % is 16.39% as of Mar. 2026, which is 18% above its 10-year median of 13.89. GuruFocus rates MEX:GEO1 with a GF Score™ of 52/100 and a GF Value™ of MXN288.62 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,081 Business Services companies, The GEO Group ranks better than 54.02% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The GEO Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 16.39%.
The historical rank and industry rank for The GEO Group's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:GEO1'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 10.6 Med: 13.89 Max: 24.68
Current: 24.68
During the past 13 years, The GEO Group's highest ROC (Joel Greenblatt) % was 24.68%. The lowest was 10.60%. And the median was 13.89%.
MEX:GEO1's ROC (Joel Greenblatt) % is ranked better than 54.02% of 1081
companies
in the Business Services industry
Industry Median: 21.22
vs MEX:GEO1: 24.68
The GEO Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.80% per year.
The GEO Group (MEX:GEO1) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The GEO Group ROC (Joel Greenblatt) % Related Terms
The GEO Group ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for The GEO Group's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Security & Protection Services subindustry, The GEO Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The GEO Group's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 16.39% mean?
The GEO Group (MEX:GEO1) has a ROC (Joel Greenblatt) % of 16.39% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The GEO Group and its competitors. This is 18% above median its historical median of 13.89. Over the past decade, The GEO Group's ROC (Joel Greenblatt) % has ranged from 10.60 to 24.68. According to the industry distribution chart, The GEO Group ranks #497 out of 1081 companies in the Business Services industry, placing it in the top 46%.
Is The GEO Group's ROC (Joel Greenblatt) % too high?
The GEO Group's current ROC (Joel Greenblatt) % of 16.39% is 18% above median its 10-year median of 13.89. Over the past 10 years, this metric has ranged from a low of 10.60 to a high of 24.68. The Business Services industry median ROC (Joel Greenblatt) % is 21.22. The GEO Group's value of 16.39% is 22.8% below this industry median. Based on the distribution chart, The GEO Group ranks #497 out of 1081 companies in the Business Services industry, which is above the industry midpoint. Overall, The GEO Group has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The GEO Group's ROC (Joel Greenblatt) % compare to BCO and BRC?
According to the Business Services industry distribution chart, The GEO Group ranks #497 out of 1081 companies for ROC (Joel Greenblatt) %. This puts The GEO Group in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 21.22. The GEO Group's value of 16.39% is 22.8% below this benchmark. Historically, The GEO Group's own ROC (Joel Greenblatt) % has ranged from 10.60 to 24.68 over the past decade. While the company's 10-year median is 13.89 vs. the industry median of 21.22, 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 ROC (Joel Greenblatt) % for a Business Services company?
The median ROC (Joel Greenblatt) % among Business Services companies is 21.22, based on 1,081 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The GEO Group's current ROC (Joel Greenblatt) % of 16.39% is 22.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The GEO Group and its competitors. For the Business Services industry, the median ROC (Joel Greenblatt) % is 21.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The GEO Group's current ROC (Joel Greenblatt) % is 16.39%, which is 18% above median its own 10-year median of 13.89. 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 MXN288.62, compared to a current price of MXN542.00 — trading 87.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 16.39%, which is 18% above median its 10-year median of 13.89 and 22.8% below the Business Services industry median of 21.22. The GEO Group's overall GF Score™ is 52/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For The GEO Group (MEX:GEO1), the current ROC (Joel Greenblatt) % is 16.39% 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 MXN542.00 is trading 87.8% above its estimated GF Value™ of MXN288.62.
GuruFocus considers The GEO Group to be Significantly Overvalued.
Key valuation signals for MEX:GEO1:
ROC (Joel Greenblatt) %: 16.39% (18% above median its 10-year median of 13.89)
GF Value™: MXN288.62 vs. price of MXN542.00 (87.8% above fair value)
Industry Position: 22.8% below the Business Services median (#497 of 1081)
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.
52GF Score
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