APi Group (APG) AI Stock Analysis

• Market Cap: $15.21B
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 108.3
• Beta (1Y): 1.17
• Revenue Growth: 7.59%
• EPS Growth: N/A
• Country: US
• Employees: 29,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 0.39
• Shares Outstanding: 415,888,500
• 10 Day Avg. Volume: 2,449,536
• 30 Day Avg. Volume: 2,942,835
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 21.40
• 1Y Price Target: $40.33
• Price Target Upside: 10.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $41.00 ▲(12.82% Upside)

APi Group's overall stock score is driven by strong financial performance and positive earnings call sentiment, supported by robust technical indicators. However, the high P/E ratio suggests a premium valuation, which could limit upside potential. Recent corporate events further bolster the company's strategic positioning.

Positive Factors

Financial Performance

Strong execution justifies stock surge in recent months, with shares up over 50% from April lows.

Operational Efficiency

Improved execution, consistent double-digit EBITDA growth, and measurable progress in safety and integration KPIs support a premium valuation.

Strategic Growth

Record backlog levels and an improving margin profile support management's strategy for continued organic growth at accretive margins.

Negative Factors

Cost Challenges

Gross margins were adversely impacted by strong project starts, weather, and increased material costs.

Internal Performance Variability

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

Market Competition

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

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 exhibits strong financial health characterized by consistent revenue growth, efficient cost management, and robust cash flow generation. The company's low leverage enhances its financial stability, although profitability margins could be further improved to maximize shareholder value.

Income Statement

APi Group has demonstrated strong revenue growth, with a TTM revenue of $7.396 billion, reflecting a steady increase from previous years. The gross profit margin stands at 31.08%, signaling efficient cost management. The net profit margin of 3.24% and an EBIT margin of 6.56% indicate healthy profitability, although there is room for improvement. The EBITDA margin of 9.73% further underscores strong operational performance.

Balance Sheet

The company's financial stability is supported by a favorable debt-to-equity ratio of 0.002, highlighting minimal leverage risk. With a return on equity of 7.57%, APi Group effectively utilizes its equity base. The equity ratio of 37.13% suggests a solid equity buffer, although there's potential for optimizing asset utilization.

Cash Flow

APi Group's cash flow is robust, with a free cash flow growth rate of 6.16% indicating positive cash generation. The operating cash flow to net income ratio of 2.70 shows strong cash conversion from earnings. The free cash flow to net income ratio of 2.37 further supports the company's ability to generate free cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.40B	7.02B	6.93B	6.56B	3.94B	3.59B
Gross Profit	2.30B	2.18B	1.94B	1.71B	939.00M	756.00M
EBITDA	803.00M	778.00M	680.00M	522.00M	341.00M	131.00M
Net Income	248.00M	250.00M	153.00M	73.00M	47.00M	-153.00M
Balance Sheet
Total Assets	8.54B	8.15B	7.59B	8.09B	5.16B	4.07B
Cash, Cash Equivalents and Short-Term Investments	432.00M	499.00M	479.00M	605.00M	1.19B	515.00M
Total Debt	3.06B	3.04B	2.57B	3.03B	1.87B	1.54B
Total Liabilities	5.37B	5.20B	4.72B	5.96B	2.84B	2.51B
Stockholders Equity	3.17B	2.95B	2.87B	2.13B	2.32B	1.56B
Cash Flow
Free Cash Flow	569.00M	536.00M	428.00M	191.00M	127.00M	458.00M
Operating Cash Flow	648.00M	620.00M	514.00M	270.00M	182.00M	496.00M
Investing Cash Flow	-346.00M	-829.00M	-115.00M	-2.90B	-121.00M	-340.00M
Financing Cash Flow	-213.00M	245.00M	-532.00M	1.76B	917.00M	99.00M

APi Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 36.34 is above the 20-day moving average (MA) of 35.40, above the 50-day MA of 34.67, and above the 200-day MA of 28.14, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 64.52 is Neutral, neither overbought nor oversold. The STOCH value of 86.42 is Negative, 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
FIX	81 Outperform	$24.96B	36.35	40.09%	0.24%	26.33%	63.32%
ACM	79 Outperform	$16.63B	25.04	28.17%	0.80%	1.50%	164.17%
APG	78 Outperform	$15.21B	108.34	8.26%	―	7.59%	―
BLD	78 Outperform	$11.97B	20.97	26.41%	―	-0.77%	4.34%
TTEK	77 Outperform	$9.67B	45.63	12.68%	0.67%	7.91%	-25.17%
MTZ	72 Outperform	$14.40B	53.41	9.38%	―	7.08%	3273.27%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%

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.

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.

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.