GEO group Inc. ($GEO) is a $715 million market cap real estate investment trust (REIT) that primarily invests in prisons & correctional facilities. The stock is currently trading at the historic low PE ratio of only 6.2! (forward PE of 6.26). Although the revenues and net incomes are stagnant/declining, they are growing their cash flows from operations at an amazing 25% year over year since 2018! In 2020, $GEO generated $441 million in cash flow from operating activities which is very impressive! Their P/FCF and P/FFO are extremely low, at 2.1 and 3.12 respectively! This clearly shows GEO group stock is currently very undervalued!! If you are a long term value investor, I highly encourage you taking a closer look at the fundamentals of the business and see if there is an investment opportunity here!

Some risks involved are: Political risks with Biden administrations (executive orders to close/end federal contracts with private prisons), high long term debts ($2.5 billion)

Their financial position is strong in the short term, need to keep an eye on the long term financial situation!

The CEO of the company recently purchased around $3 million worth of shares at around $11.XX/share. Also, Michael Burry holds around $7.5 million worth of shares in his portfolio.

Finally, I personally think GEO stock is a buy below $6/share!

#investinginsights​ #ali_b_investing_insights​

DISCLAIMER: All information and data on my YouTube Channel is solely for informational purposes. All the information presented here is solely based on my personal research on the company and represents my personal opinion only. This video or any information presented here should not be considered as an investment advice. Please do your own due diligence before investing in any kind of financial assets.

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