APi Group (APG) AI Stock Analysis

• Market Cap: $15.46B
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 100.1
• Beta (1Y): 1.17
• 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: 2,554,722
• 30 Day Avg. Volume: 2,062,486
• 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: 1.12
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 7.24
• Enterprise Value/Ebitda: 21.15
• 1Y Price Target: $42.00
• Price Target Upside: 17.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $39.00 ▲(9.00% Upside)

APi Group's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and strategic initiatives. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals, contributing to a moderate overall score.

Positive Factors

Revenue Growth

The significant revenue growth of 15% year-over-year highlights APi Group's strong market position and ability to capture new business, which is crucial for sustained long-term growth.

M&A Strategy

The active M&A strategy enhances APi Group's market reach and service capabilities, positioning the company for long-term competitive advantage and growth.

Strong Financial Position

Raising revenue and EBITDA guidance underscores APi Group's robust financial health and confidence in achieving future growth targets, supporting long-term stability.

Negative Factors

Margin Pressure

Margin pressure in Specialty Services due to rising costs and weather impacts could hinder profitability, affecting long-term financial performance if not managed effectively.

Rising Material Costs

Persistent rising material costs pose a risk to APi Group's cost structure, potentially impacting margins and profitability over the medium term if costs remain elevated.

Profitability Margins

While financial health is strong, the need to improve profitability margins indicates potential challenges in optimizing operations, which could affect long-term value creation.

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 generates revenue through a variety of channels, primarily by offering specialized contracting services in fire protection, HVAC, plumbing, and other industrial sectors. The company operates through multiple subsidiaries, each focusing on different aspects of the service industry, which allows for a broad market reach. Key revenue streams include project-based contracts for new construction, ongoing maintenance and service agreements, and emergency response services. Additionally, APG benefits from strategic partnerships with major construction firms and government entities, which provide a steady flow of contracts and service opportunities. The company's commitment to safety and quality enhances its reputation, fostering repeat business and long-term contracts that contribute significantly to its earnings.

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: Positive
• Last Price: 35.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 35.78 is above the 20-day moving average (MA) of 34.76, above the 50-day MA of 34.89, and above the 200-day MA of 30.51, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 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	―	$17.45B	26.80	28.17%	0.79%	1.50%	164.17%
DY	―	$8.29B	32.17	20.65%	―	12.61%	10.33%
PWR	―	$66.97B	66.63	13.16%	0.09%	18.72%	23.97%
J	―	$18.44B	38.55	9.29%	0.81%	-30.12%	-21.04%
APG	―	$15.46B	100.14	8.71%	―	10.69%	―
MTZ	―	$16.11B	48.54	11.18%	―	12.99%	274.10%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

APi Group Corporate Events

APi Group Reports Record Q3 2025 Results

APi Group Corporation is a global leader in business services, specializing in fire and life safety, security, elevator and escalator, and specialty services with a strong recurring revenue model and over 500 locations worldwide. In its latest earnings report, APi Group Corporation announced record-breaking financial results for the third quarter of 2025, with net revenues reaching $2.1 billion, marking a 14.2% increase from the previous year. The company also reported a significant rise in net income and adjusted EBITDA, demonstrating robust financial health and operational efficiency. Key highlights from the report include a 34.8% increase in net income to $93 million and a 14.7% rise in adjusted EBITDA to $281 million, with an expansion in adjusted EBITDA margin to 13.5%. The company’s Safety Services segment showed impressive growth, with net revenues up by 15.4% and segment earnings increasing by 18.6%. Meanwhile, the Specialty Services segment also experienced a revenue boost of 11.6%, although it faced a slight decline in gross margin due to increased material costs. Looking ahead, APi Group has raised its full-year 2025 guidance for net revenues and adjusted EBITDA, reflecting confidence in its strategic initiatives and market positioning. The company is poised for continued growth, driven by its inspection-first strategy, disciplined capital allocation, and focus on expanding its service offerings.

APi Group’s Earnings Call Highlights Record Growth

APi Group Corporation’s recent earnings call conveyed a positive sentiment, underscoring the company’s impressive record performance and robust growth in key segments like Safety Services and Specialty Services. Despite facing challenges such as margin pressures in the Specialty Services segment, the overall outlook remains optimistic due to strategic mergers and acquisitions (M&A) activity, a strong backlog, and solid financial results.

APi Group Reports Record Q2 2025 Financial Results

APi Group Corporation is a global leader in providing fire and life safety, security, elevator and escalator, and specialty services, with a strong focus on recurring revenue and a presence in over 500 locations worldwide.