Api Group Corporation (APG)
NYSE:APG
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APi Group
(NYSE:APG)
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Rating:67Neutral
Price Target:
$46.00
▼(-1.60% Downside)
Action:Reiterated
Date:06/09/26
APG scores positively on improving financial performance and strong, guidance-supported operating momentum, reinforced by value-accretive M&A and enhanced financing flexibility. The overall score is held back by an elevated P/E and mixed technicals, plus continued sensitivity to leverage and integration/mix/FX pressures.
Positive Factors
Recurring, regulatory-driven revenue
APi’s core business is inspection, service and monitoring that is statutorily required, creating durable, recurring revenue and high visibility into replacement and maintenance demand. The Onyx acquisition (≈$190M) expands a regulatory-driven base, raising recurring cash flow and cross-sell scale across North America.
Negative Factors
Meaningful leverage remains
Leverage has improved but remains material; net debt/EBITDA (~1.8x) and prior debt levels mean interest and principal obligations can constrain flexibility in downturns. Continued M&A or slower cash conversion would limit free cash deployment and require careful balance-sheet management to avoid rating or covenant pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, regulatory-driven revenue
APi’s core business is inspection, service and monitoring that is statutorily required, creating durable, recurring revenue and high visibility into replacement and maintenance demand. The Onyx acquisition (≈$190M) expands a regulatory-driven base, raising recurring cash flow and cross-sell scale across North America.
Read all positive factors
APi Group (APG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.65B
Dividend YieldN/A
Average Volume (3M)2.87M
Price to Earnings (P/E)56.3
Beta (1Y)1.04
Revenue Growth14.55%
EPS Growth-303.35%
CountryUS
Employees29,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.70
Shares Outstanding433,228,000
10 Day Avg. Volume3,053,497
30 Day Avg. Volume2,869,426
Financial Highlights & Ratios
PEG Ratio2.27
Price to Book (P/B)4.67
Price to Sales (P/S)2.01
P/FCF Ratio24.01
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit7.19
Enterprise Value/Ebitda19.93
Forecast
1Y Price Target
$53.00Price Target Upside13.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.7
Revenue Forecast (FY)$8.65B
APi Group Business Overview & Revenue Model
Company Description
APi Group Corporation operates as a global enterprise offering vital safety, specialized infrastructure, and industrial services across North America, Europe, Australia, and the Asia-Pacific region. Its business activities are segmented into three...
How the Company Makes Money
APG makes money primarily by contracting to install, upgrade, and maintain safety and specialty systems for commercial, industrial, and institutional customers. Revenue is generated through (1) project-based work: one-time or multi-phase jobs to d...
APi Group Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call portrayed strong operational momentum and financial performance: double-digit reported revenue growth (15.3%), healthy organic growth (10.4%), robust Specialty and Safety segment performance, meaningful adjusted EBITDA and EPS expansion, improved guidance, strong free cash flow generation and a conservative leverage position (net debt/EBITDA ~1.8x). Management is actively executing accretive M&A (> $1B announced) and advancing systems integration. Key headwinds include mix-driven gross margin pressure (adjusted gross margin down 40 bps), input-cost inflation, FX headwinds, and the need to finance pending acquisitions which will temporarily affect leverage; free cash flow conversion in Q1 was below the company target though full-year expectations remain intact. On balance, positives (growth, margin expansion, cash generation, raised guidance, strategic M&A and low leverage) materially outweigh the manageable risks and near-term mix/FX pressures.Positive Updates
Strong Top-Line Growth
Reported net revenues of $1.98 billion, up 15.3% year-over-year, with organic revenue growth of 10.4% driven by inspection, service & monitoring, project revenues and pricing.
Negative Updates
Adjusted Gross Margin Decline
Adjusted gross margin declined to 31.3%, down 40 basis points year-over-year, primarily driven by business mix (higher project mix and greater Specialty Services weighting).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Reported net revenues of $1.98 billion, up 15.3% year-over-year, with organic revenue growth of 10.4% driven by inspection, service & monitoring, project revenues and pricing.
Read all positive updates
Company Guidance
APi raised its 2026 outlook, now forecasting full‑year net revenues of $8.475–$8.675 billion (organic growth 5%–7%) and adjusted EBITDA of $1.15–$1.21 billion (midpoint margin ~13.8%, EBITDA growth 11%–16%); Q2 guidance is net revenues $2.175–$2.225 billion (organic ~7%–9%) and adjusted EBITDA $300–$310 million (midpoint margin ~13.9%, growth 10%–14%). Management reiterated other 2026 assumptions of interest expense ~$130 million, depreciation ~$90 million, capital expenditures ~$105 million, an adjusted effective tax rate of 23%, corporate expense ~ $35 million/quarter, and an adjusted diluted share count of ~441 million; Q1 adjusted free cash flow was $125 million and the company remains on track for ~115% adjusted FCF conversion for the year with net leverage around 1.8x (well below the 2.5–3x long‑term target). CertaSite is already included in guidance, Wtech and Onyx will be reflected after close, and management noted a stronger U.S. dollar was a headwind to the upward revision while reaffirming its 10/16/60+ long‑term goals ($10B revenue, 16%+ adjusted EBITDA margin, 60%+ inspection/service/monitoring revenue, $3B cumulative adjusted FCF through 2028).APi Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.17B | 7.91B | 7.02B | 6.93B | 6.56B | 3.94B |
| Gross Profit | 2.38B | 2.49B | 2.18B | 1.94B | 1.71B | 939.00M |
| EBITDA | 859.00M | 881.00M | 778.00M | 680.00M | 522.00M | 341.00M |
| Net Income | 324.00M | 302.00M | 250.00M | 153.00M | 73.00M | 47.00M |
Balance Sheet | ||||||
| Total Assets | 8.97B | 8.94B | 8.15B | 7.59B | 8.09B | 5.16B |
| Cash, Cash Equivalents and Short-Term Investments | 645.00M | 912.00M | 499.00M | 479.00M | 605.00M | 1.19B |
| Total Debt | 5.00M | 3.29B | 3.04B | 2.57B | 3.03B | 1.87B |
| Total Liabilities | 5.48B | 5.53B | 5.20B | 4.72B | 5.96B | 2.84B |
| Stockholders Equity | 3.49B | 3.41B | 2.95B | 2.87B | 2.13B | 2.32B |
Cash Flow | ||||||
| Free Cash Flow | 680.00M | 663.00M | 536.00M | 428.00M | 191.00M | 127.00M |
| Operating Cash Flow | 782.00M | 759.00M | 620.00M | 514.00M | 270.00M | 182.00M |
| Investing Cash Flow | -545.00M | -254.00M | -829.00M | -115.00M | -2.90B | -121.00M |
| Financing Cash Flow | -65.00M | -121.00M | 245.00M | -532.00M | 1.76B | 917.00M |
APi Group Technical Analysis
Positive
46.75
Price Trends
44.12
Negative
43.35
Negative
40.19
Positive
Market Momentum
-0.43
Negative
48.12
Neutral
47.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APG, the sentiment is Positive. The current price of 46.75 is above the 20-day moving average (MA) of 41.97, above the 50-day MA of 44.12, and above the 200-day MA of 40.19, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 47.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APG.
APi Group Risk Analysis
APi Group disclosed 50 risk factors in its most recent earnings report. APi Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
APi Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $102.53B | 95.02 | 13.03% | 0.09% | 21.09% | 17.37% | |
73 Outperform | $13.95B | 45.14 | 18.85% | ― | 29.76% | 33.40% | |
72 Outperform | $28.33B | 61.67 | 14.53% | ― | 22.59% | 111.23% | |
67 Neutral | $18.65B | 56.32 | 9.71% | ― | 14.55% | -303.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.94B | 17.85 | 21.32% | 1.06% | -0.38% | 2.58% | |
60 Neutral | $14.91B | 39.20 | 10.82% | 0.94% | 0.95% | -10.51% |
* Industrials Sector Average
APG
APi Group
42.34
10.44
32.73%
ACM
Aecom Technology
70.12
-40.64
-36.69%
DY
Dycom
469.00
235.85
101.16%
J
Jacobs Solutions
127.00
2.41
1.93%
MTZ
MasTec
362.97
200.87
123.92%
PWR
Quanta Services
707.74
349.83
97.74%
APi Group Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
APi Group boosts 2026 outlook after Onyx-Fire acquisition
Positive
Jun 9, 2026
On June 9, 2026, APi Group Corporation announced it had closed, on June 8, 2026, the acquisition of Onyx-Fire Protection Services, a leading inspection-first fire and life safety services provider in Canada, strengthening APi’s North America...
Executive/Board ChangesShareholder Meetings
APi Group Shareholders Endorse Board, Governance and Pay
Positive
May 19, 2026
At its virtual 2026 Annual Meeting of Shareholders held on May 15, 2026, APi Group shareholders elected nine directors to one-year terms, with all nominees receiving majority support despite some variation in vote margins. The meeting drew partici...
Business Operations and StrategyPrivate Placements and Financing
APi Group Expands Credit Facilities and Issues Senior Notes
Positive
May 18, 2026
On May 14, 2026, APi Group DE, Inc., a wholly owned subsidiary of APi Group Corporation, amended its existing credit agreement to increase revolving credit commitments from $750 million to $1.0 billion, extend the revolver maturity to May 14, 2031...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
APi Group Boosts Capital Structure for Fire Services Expansion
Positive
May 8, 2026
APi Group Corporation, listed on the NYSE as APG, is a global provider of business services in fire and life safety, security, elevator and escalator, and specialty services, operating from more than 500 locations worldwide. The company generates ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.