APi Group (APG) AI Stock Analysis

• Market Cap: $13.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 93.8
• Beta (1Y): 1.26
• Revenue Growth: 3.20%
• EPS Growth: N/A
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 0.37
• Shares Outstanding: 276,839,970
• 10 Day Avg. Volume: 1,541,075
• 30 Day Avg. Volume: 1,988,094
• PEG Ratio: 1.73
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.97
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $50.57
• Price Target Upside: 5.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $52.00 ▲(8.67%Upside)

APi Group's overall stock score is driven by strong financial performance and positive corporate events, including a stock split and an expanded credit facility. While the stock shows bullish momentum, its high P/E ratio indicates potential overvaluation, and overbought signals suggest caution. Earnings call insights highlight growth in key segments but also note challenges in the Specialty Services segment.

Positive Factors

Competitive Advantage

The CEO highlighted the company’s distinct competitive advantages that will help drive improving financial results and compounding returns over time.

Financial Performance

Revenue grew 7.4% to $1.72 billion, above the consensus estimate of $1.66 billion.

Strategic Growth

The company is on track to hit its target of $250 million in bolt-on fire and life safety acquisitions annually.

Negative Factors

Competitive Pressure

Competition for fire and life safety acquisitions remains elevated due to the large amount of private equity interest in the industry.

Valuation Concerns

Shares currently trade at 15 times our next-12-months’ EBITDA estimate, compared to the five-year average of 11 times.

APi Group Business Overview & Revenue Model

Company Description

APi Group Corporation provides safety, specialty, and industrial services in North America, Europe, Australia, and the Asian-Pacific. It operates through three segments: Safety Services, Specialty Services, and Industrial Services. The Safety Services segment offers safety solutions focusing on end-to-end integrated occupancy systems, such as fire protection solutions; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, monitoring, and service of these integrated systems. The Specialty Services segment provides infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment also offers engineering and design, fabrication, installation, and retrofitting and upgrading services. The Industrial Services segment provides various services and solutions comprising pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry focused on transmission and distribution. It serves customers in the public and private sectors, including commercial, industrial, fulfillment centers, distribution, manufacturing, education, healthcare, telecom, transmission, utilities, high tech, entertainment, retail, financial services, and governmental markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

How the Company Makes Money

APi Group makes money through a diversified revenue model primarily based on providing essential services across its core sectors. The company's key revenue streams include service contracts for fire protection, HVAC installation and maintenance, and industrial cleaning services. These contracts often involve long-term agreements with businesses and government entities, ensuring a steady flow of income. Additionally, APi Group benefits from strategic partnerships and acquisitions that expand its service offerings and geographical reach. The company also capitalizes on cross-selling opportunities among its subsidiaries, enhancing its ability to meet client needs comprehensively and thereby increasing revenue potential.

APi Group Financial Statement Overview

Summary

APi Group's financials are strong, with notable revenue and profit growth. The company's solid balance sheet, marked by low debt and high equity, indicates stability and low financial risk. Cash flow management is effective, enhancing financial flexibility. While profitability metrics are strong, continual focus on improving net margins and monitoring liabilities will bolster financial health.

Income Statement

APi Group exhibits strong revenue growth with a TTM (Trailing-Twelve-Months) increase to $7.136 billion from the previous year. The gross profit margin remains healthy at around 30%, indicating efficient cost management. EBIT and EBITDA margins are solid, signaling operational efficiency. However, the slight decline in net profit margin suggests room for improvement in net earnings management.

Balance Sheet

The balance sheet reflects a robust equity position, with a debt-to-equity ratio significantly improved to near zero in the TTM period, due to decreased debt levels. The equity ratio is strong, showcasing financial stability. Return on equity is trending positively, although modest. The company's high equity levels indicate financial resilience, though the potential risk of liabilities should be monitored.

Cash Flow

Operating cash flow is strong, with a positive trend in free cash flow growth. The free cash flow to net income ratio is robust, highlighting effective cash management. The operating cash flow to net income ratio suggests efficient conversion of profits into cash. The cash position supports strategic investments and financial flexibility, although past volatility in investing cash flow should be considered.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.14B	7.02B	6.93B	6.56B	3.94B	3.59B
	Gross Profit
2.17B	2.18B	1.94B	1.71B	939.00M	756.00M
	EBIT
475.00M	484.00M	359.00M	162.00M	136.00M	31.00M
	EBITDA
781.00M	484.00M	680.00M	532.00M	338.00M	131.00M
	Net Income Common Stockholders
240.00M	250.00M	153.00M	73.00M	47.00M	-153.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
460.00M	499.00M	479.00M	605.00M	1.19B	515.00M
	Total Assets
8.10B	8.15B	7.59B	8.09B	5.16B	4.07B
	Total Debt
3.04B	3.04B	2.57B	3.03B	1.87B	1.54B
	Net Debt
2.58B	2.54B	2.10B	2.42B	685.00M	1.03B
	Total Liabilities
5.12B	5.20B	4.72B	5.96B	2.84B	2.51B
	Stockholders Equity
2.98B	2.95B	2.87B	2.13B	2.32B	1.56B
Cash Flow		Free Cash Flow
601.00M	536.00M	428.00M	191.00M	127.00M	458.00M
	Operating Cash Flow
675.00M	620.00M	514.00M	270.00M	182.00M	496.00M
	Investing Cash Flow
-821.00M	-829.00M	-115.00M	-2.90B	-121.00M	-340.00M
	Financing Cash Flow
360.00M	245.00M	-532.00M	1.76B	917.00M	99.00M

APi Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 47.85 is above the 20-day moving average (MA) of 47.00, above the 50-day MA of 41.79, and above the 200-day MA of 37.59, indicating a bullish trend. The MACD of 1.57 indicates Positive momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APG.

APi Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$14.82B	24.43	28.07%	0.93%	4.55%	―
FIX	79 Outperform	$17.38B	29.55	37.81%	0.36%	31.47%	64.96%
BLD	76 Outperform	$8.53B	15.11	24.59%	―	1.46%	-0.37%
APG	76 Outperform	$13.44B	93.84	9.09%	―	3.20%	―
MTZ	73 Outperform	$12.79B	59.85	7.70%	―	3.03%	―
TTEK	71 Outperform	$9.50B	51.93	11.91%	0.72%	10.35%	-29.34%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

APi Group Corporate Events

APi Group Announces Three-for-Two Stock Split

On May 20, 2025, APi Group DE, Inc., a subsidiary of APi Group Corporation, executed Amendment No. 8 to its Credit Agreement, increasing its revolving credit facility by $250 million to $750 million and extending its maturity date. The amendment also reduced interest margins and removed the credit spread adjustment, potentially lowering borrowing costs. On May 21, 2025, APi Group announced a three-for-two stock split of its common stock, effective June 30, 2025, which could enhance stock liquidity and accessibility for investors.

The most recent analyst rating on (APG) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on APi Group stock, see the APG Stock Forecast page.

APi Group Announces Stock Split and Financial Targets

On May 21, 2025, APi Group Corporation announced new long-term financial targets and a three-for-two stock split. The company aims for $10 billion in net revenues and a 16% adjusted EBITDA margin by 2028, supported by a strong start in 2025. The stock split will increase the number of outstanding common shares to approximately 415 million, enhancing shareholder value.

The most recent analyst rating on (APG) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on APi Group stock, see the APG Stock Forecast page.

APi Group Holds Virtual Annual Meeting, Key Votes Approved

On May 16, 2025, APi Group held its Annual Meeting virtually, where shareholders voted on several key issues. The election of nine director nominees for a one-year term was approved, along with the ratification of KPMG LLP as the independent registered public accounting firm for the 2025 fiscal year. Additionally, shareholders approved the compensation of the company’s named executive officers and an amendment to increase the number of authorized shares of common stock. These decisions reflect strong shareholder support for the company’s current leadership and strategic direction.

The most recent analyst rating on (APG) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on APi Group stock, see the APG Stock Forecast page.

APi Group Appoints David Jackola as CFO

APi Group Corporation announced the appointment of David Jackola as Executive Vice President and Chief Financial Officer, effective March 28, 2025. Jackola, who has been with the company since October 2021, previously served as Interim CFO and has extensive experience in global finance. His appointment is expected to support APi’s strategic objectives and enhance its leadership as the company aims to return to traditional levels of organic growth in 2025 and beyond.