BUY Conviction4/5 Analysis quality75/100 Price target31 now
The analyst argues that GEO Group, despite its high debt, is an attractive long-term investment due to its strong and consistent free cash flow generation, which is currently being used to pay down debt. Once debt is normalized, the free cash flow yield to equity holders is projected to be around 25% annually. The stock is trading at an all-time low valuation relative to its earnings, presenting a significant opportunity for patient investors.
“I think long term if you're willing to wait there's a lot of cash on the table here for people who want to put money away and don't don't want to look at it for five years so this is very very interesting.”