The GEO GroupMEX:GEO1 +3.56%54 ROE % is 10.23% as of Mar. 2026, which is 23% below its 10-year median of 13.21. 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 1,058 Business Services companies, The GEO Group ranks better than 79.3% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The GEO Group's annualized net income for the quarter that ended in Mar. 2026 was MXN2,765 Mil. The GEO Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN27,041 Mil. Therefore, The GEO Group's annualized ROE % for the quarter that ended in Mar. 2026 was 10.23%.
The historical rank and industry rank for The GEO Group's ROE % or its related term are showing as below:
MEX:GEO1'
s ROE % Range Over the Past 10 Years
Min: 2.43 Med: 13.21 Max: 18.84
Current: 18.84
During the past 13 years, The GEO Group's highest ROE % was 18.84%. The lowest was 2.43%. And the median was 13.21%.
MEX:GEO1's ROE % is ranked better than 79.3% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs MEX:GEO1: 18.84
The GEO Group (MEX:GEO1) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
The GEO Group ROE % Related Terms
The GEO Group ROE % Historical Data
* Premium members only.
The historical data trend for The GEO Group's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, The GEO Group's ROE % distribution charts can be found below:
* The bar in red indicates where The GEO Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
The GEO Group (MEX:GEO1) has a ROE % of 10.23% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The GEO Group and its competitors. This is 23% below median its historical median of 13.21. Over the past decade, The GEO Group's ROE % has ranged from 2.43 to 18.84. According to the industry distribution chart, The GEO Group ranks #219 out of 1058 companies in the Business Services industry, placing it in the top 20.7%.
Is The GEO Group's ROE % too high?
The GEO Group's current ROE % of 10.23% is 23% below median its 10-year median of 13.21. Over the past 10 years, this metric has ranged from a low of 2.43 to a high of 18.84. The Business Services industry median ROE % is 8.10. The GEO Group's value of 10.23% is 26.4% above this industry median. Based on the distribution chart, The GEO Group ranks #219 out of 1058 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 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The GEO Group's ROE % compare to CXW and BRC?
According to the Business Services industry distribution chart, The GEO Group ranks #219 out of 1058 companies for ROE %. This places The GEO Group in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 8.10. The GEO Group's value of 10.23% is 26.4% above this benchmark. Historically, The GEO Group's own ROE % has ranged from 2.43 to 18.84 over the past decade. While the company's 10-year median is 13.21 vs. the industry median of 8.10, 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 ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The GEO Group's current ROE % of 10.23% is 26.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The GEO Group and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The GEO Group's current ROE % is 10.23%, which is 23% below median its own 10-year median of 13.21. 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 (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 ROE % is 10.23%, which is 23% below median its 10-year median of 13.21 and 26.4% above the Business Services industry median of 8.10. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For The GEO Group (MEX:GEO1), the current ROE % is 10.23% 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:
ROE %: 10.23% (23% below median its 10-year median of 13.21)
GF Value™: MXN268.53 vs. price of MXN495.00 (84.3% above fair value)
Industry Position: 26.4% above the Business Services median (#219 of 1058)
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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