APi Group (APG) AI Stock Analysis

• Market Cap: $16.46B
• Dividend Yield: N/A
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 105.1
• Beta (1Y): 1.14
• Revenue Growth: 10.69%
• EPS Growth: N/A
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.41
• Shares Outstanding: 415,905,900
• 10 Day Avg. Volume: 2,618,817
• 30 Day Avg. Volume: 2,704,621
• PEG Ratio: 1.77
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 17.96
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 7.24
• Enterprise Value/Ebitda: 21.15
• 1Y Price Target: $43.00
• Price Target Upside: 12.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.45
• Revenue Forecast (FY): $7.88B

• Rating: 79 Outperform
• Price Target: $43.00 ▲(12.57% Upside)

APi Group's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The high P/E ratio suggests potential overvaluation, but the company's strategic growth initiatives and robust cash flow generation provide a solid foundation for future performance.

Positive Factors

Revenue Growth

APi Group's strong revenue growth, particularly the 14% increase in Q3, indicates robust demand for its services and effective market strategies, supporting long-term business expansion.

Strategic Acquisitions

The company's active acquisition strategy enhances its market position and service capabilities, contributing to sustained growth and competitive advantage.

Cash Flow Generation

Strong cash flow generation provides APi Group with financial flexibility to invest in growth opportunities and manage debt, ensuring long-term financial health.

Negative Factors

Margin Pressures

Decreasing margins in Specialty Services due to cost pressures could impact profitability, challenging the company’s ability to maintain its competitive edge.

Operating Margin Constraints

Limited operating margin expansion despite revenue growth suggests efficiency challenges, potentially affecting future profitability and investment capacity.

Material Cost Increases

Rising material costs can erode profit margins, necessitating strategic cost management to sustain long-term financial performance.

APi Group Business Overview & Revenue Model

Company Description

APi Group (APG) is a leading provider of safety, specialty, and industrial services, operating primarily in the construction and maintenance sectors. The company operates through various segments, including Life Safety Services, Specialty Services, and Industrial Services, offering a broad range of solutions such as fire protection, security systems, and infrastructure services. With a commitment to safety and innovation, APi Group serves a diverse clientele across multiple industries, including commercial, industrial, and government sectors.

How the Company Makes Money

APi Group generates revenue through multiple key streams, primarily by offering specialized services in life safety, specialty, and industrial sectors. The company earns money by securing contracts for installation, maintenance, and inspection of fire protection systems, security solutions, and various industrial services. These contracts can be long-term agreements, providing a steady income stream. Additionally, APi Group benefits from partnerships with manufacturers and suppliers, which enhance its service offerings and may include exclusive agreements that contribute to profitability. The company also capitalizes on acquisitions, expanding its market reach and service capabilities, thereby increasing its revenue potential through a larger customer base and diversified services.

APi Group Financial Statement Overview

Summary

APi Group shows strong financial performance with robust revenue growth, improved profitability, and a significantly strengthened balance sheet. The reduction in debt enhances financial stability, while strong cash flow metrics support ongoing operations and potential investments. However, slight decreases in EBIT and EBITDA margins indicate some operational cost pressures.

Income Statement

APi Group demonstrates strong revenue growth with a TTM increase of 3.5% and consistent gross profit margins around 31%. The net profit margin has improved to 3.3% in the TTM, indicating enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, suggesting some operational cost pressures.

Balance Sheet

The company's balance sheet shows a significant reduction in debt, with a TTM debt-to-equity ratio of 0.0015, indicating strong financial stability. Return on equity remains stable at around 8.5%, reflecting efficient use of equity. The equity ratio is healthy, suggesting a solid financial position, but the previous high leverage could pose risks if not managed carefully.

Cash Flow

APi Group's cash flow performance is robust, with a TTM free cash flow growth of 52.7% and a strong free cash flow to net income ratio of 86.7%. The operating cash flow to net income ratio is slightly lower, indicating room for improvement in cash generation efficiency relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.66B	7.02B	6.93B	6.56B	3.94B	3.59B
Gross Profit	2.38B	2.18B	1.94B	1.71B	939.00M	756.00M
EBITDA	816.00M	778.00M	680.00M	522.00M	341.00M	131.00M
Net Income	263.00M	250.00M	153.00M	73.00M	47.00M	-153.00M
Balance Sheet
Total Assets	8.72B	8.15B	7.59B	8.09B	5.16B	4.07B
Cash, Cash Equivalents and Short-Term Investments	555.00M	499.00M	479.00M	605.00M	1.19B	515.00M
Total Debt	3.05B	3.04B	2.57B	3.03B	1.87B	1.54B
Total Liabilities	5.45B	5.20B	4.72B	5.96B	2.84B	2.51B
Stockholders Equity	3.28B	2.95B	2.87B	2.13B	2.32B	1.56B
Cash Flow
Free Cash Flow	572.00M	536.00M	428.00M	191.00M	127.00M	458.00M
Operating Cash Flow	660.00M	620.00M	514.00M	270.00M	182.00M	496.00M
Investing Cash Flow	-380.00M	-829.00M	-115.00M	-2.90B	-121.00M	-340.00M
Financing Cash Flow	-219.00M	245.00M	-532.00M	1.76B	917.00M	99.00M

APi Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.20
• 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 Neutral. The current price of 38.2 is below the 20-day moving average (MA) of 38.72, above the 50-day MA of 36.84, and above the 200-day MA of 32.46, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 44.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APG.

APi Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	80 Outperform	$10.07B	33.48	21.90%	―	13.19%	33.58%
APG	79 Outperform	$16.46B	105.15	8.71%	―	10.69%	―
PWR	78 Outperform	$65.39B	65.05	13.16%	0.10%	18.72%	23.97%
MTZ	74 Outperform	$17.22B	49.76	11.18%	―	12.99%	274.10%
ACM	71 Outperform	$12.97B	23.34	27.29%	1.08%	0.21%	53.80%
J	70 Outperform	$15.91B	56.27	7.67%	0.97%	-23.00%	-61.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

APi Group Corporate Events

APi Group to Acquire CertaSite, LLC

On December 10, 2025, APi Group Corporation announced its agreement to acquire CertaSite, LLC, a Midwest-based provider of fire and life safety services. The acquisition, expected to close in the first quarter of 2026, aims to enhance APi’s inspection-first strategy and is projected to be accretive to its financial targets. CertaSite is anticipated to contribute significantly to APi’s revenue mix, aligning with the company’s long-term goals. APi also updated its 2025 financial guidance, expecting net revenues and adjusted EBITDA to meet or exceed previous estimates, reflecting strong operational momentum and strategic positioning for future growth.