APi Group (APG) AI Stock Analysis

• Market Cap: $14.46B
• Dividend Yield: N/A
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): 68.0
• Beta (1Y): 1.20
• Revenue Growth: 3.20%
• EPS Growth: N/A
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 0.25
• Shares Outstanding: 415,259,950
• 10 Day Avg. Volume: 1,792,553
• 30 Day Avg. Volume: 4,640,829
• PEG Ratio: -5.29
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.09
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 7.81
• Enterprise Value/Ebitda: 5.58
• 1Y Price Target: $38.08
• Price Target Upside: 9.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $56.00 ▲(61.62%Upside)

APi Group's strong financial health and positive earnings call sentiment are tempered by overvaluation concerns and mixed technical indicators. The company's robust revenue growth and strategic initiatives are significant strengths, but the high P/E ratio and overbought technical signals suggest caution.

Positive Factors

Acquisitions

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

Earnings

Shares finished the day up more than 6% following better-than-expected first-quarter results and positive commentary surrounding the growth outlook and demand trends.

Financial Performance

APG has transitioned to a streamlined operator with two focused platforms: Safety Services and Specialty Services.

Negative Factors

Competition

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

Operating Margins

Some branches are operating at margins below 10% due to being earlier on in the implementation of the company's inspection-first approach.

Valuation

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 (APG) is a leading provider of safety, specialty, and industrial services across various sectors, including construction, oil and gas, and infrastructure. The company offers a wide range of services, including fire protection, HVAC, industrial cleaning, and maintenance. By leveraging its extensive industry expertise and a network of specialized subsidiaries, APi Group delivers comprehensive solutions to its clients, ensuring safety, reliability, and efficiency in their operations.

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 exhibits strong financial performance with robust revenue growth and a solid balance sheet. The company's low debt and high equity position indicate financial stability, while effective cash flow management supports strategic investments. However, slight declines in net profit margin highlight the need for continued focus on net earnings management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.02B	6.93B	6.56B	3.94B	3.59B
Gross Profit	2.18B	1.94B	1.71B	939.00M	756.00M
EBITDA	484.00M	680.00M	532.00M	338.00M	131.00M
Net Income	250.00M	153.00M	73.00M	47.00M	-153.00M
Balance Sheet
Total Assets	8.15B	7.59B	8.09B	5.16B	4.07B
Cash, Cash Equivalents and Short-Term Investments	499.00M	479.00M	605.00M	1.19B	515.00M
Total Debt	3.04B	2.57B	3.03B	1.87B	1.54B
Total Liabilities	5.20B	4.72B	5.96B	2.84B	2.51B
Stockholders Equity	2.95B	2.87B	2.13B	2.32B	1.56B
Cash Flow
Free Cash Flow	536.00M	428.00M	191.00M	127.00M	458.00M
Operating Cash Flow	620.00M	514.00M	270.00M	182.00M	496.00M
Investing Cash Flow	-829.00M	-115.00M	-2.90B	-121.00M	-340.00M
Financing Cash Flow	245.00M	-532.00M	1.76B	917.00M	99.00M

APi Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.65
• 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 34.65 is above the 20-day moving average (MA) of 33.95, above the 50-day MA of 32.09, and above the 200-day MA of 26.22, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 75.82 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	$15.16B	24.98	28.07%	0.92%	4.55%	―
BLD	78 Outperform	$10.70B	18.06	24.59%	―	1.46%	-0.37%
FIX	77 Outperform	$19.15B	32.57	37.81%	0.33%	31.47%	64.96%
MTZ	73 Outperform	$13.60B	63.47	7.70%	―	3.03%	―
TTEK	71 Outperform	$9.66B	52.79	11.91%	0.71%	10.35%	-29.34%
APG	67 Neutral	$14.46B	67.95	9.09%	―	3.20%	―
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%

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.