One-glance verdict
Overvalued
$21.26 our estimate vs market $36.76
Wall Street consensus: $52.36 (146.3% higher than our fair-value estimate)
73% above our estimate, beyond the bull case
Fundamentals snapshot
APi Group Corporation
APG · NYQ · Industrials · Engineering & Construction
Current price
$36.76
52-week range
$33.40 - $49.99
Market cap
$15.89B
Balance sheet
Stretched
3.93x Stretched
Net debt $2.99B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 6.7% last year.
- Reward Returns 10.3% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
APi Group Corporation
APi Group Corporation is a company that keeps buildings safe by installing and servicing systems like fire sprinklers, security alarms, and elevators. A large portion of their business comes from mandatory inspections and maintenance services, which provides them with steady recurring revenue (income that is predictable and likely to continue in the future). This makes the company's financial results less dependent on the ups and downs of new construction projects.
How the company got here
APi Group started in 1926 as a small insulation contractor in Minnesota. For decades, it grew by buying other specialty contracting businesses. A major turning point was in 2019 when it became a publicly-traded company on the New York Stock Exchange. In 2022, it made a very large acquisition of Chubb Fire & Security, which significantly expanded its international presence and its focus on safety services. This history of acquiring other companies is a key part of how it became the large, global company it is today.
What it actually does
APi Group is a company that provides specialized services that are often required by law for buildings and infrastructure to operate safely. Think of them as the experts who install, inspect, and repair critical systems you don't always see, like fire sprinklers, security alarms, and elevators. They serve a wide range of customers, from big commercial buildings and hospitals to industrial plants and utilities. A large part of their business comes from recurring service and inspection contracts, which means they have ongoing relationships with their customers.
Safety Services
This is the company's largest and most important business, making up the majority of its revenue. This segment focuses on services that keep people and buildings safe, many of which are required by law. It includes installing, inspecting, and servicing fire protection systems (like sprinklers and alarms), electronic security systems (like access controls and monitoring), and elevators and escalators. Customers, such as building owners and facility managers, pay for these services to ensure their properties are up to code and to provide a safe environment.
Specialty Services
This part of the company provides various specialized contracting services for industrial and infrastructure projects. This can include things like installing and maintaining electrical and water utility systems, providing specialized insulation for industrial plants, and other construction-related services. Customers for these services are typically large industrial companies or public utilities that need expert help with their infrastructure. While smaller than Safety Services, this segment handles important, project-based work.
What management is betting on now
The company's main focus is to grow its Safety Services business, especially the parts that generate recurring revenue (income that is predictable and stable over time) like inspections and monitoring. They are also concentrating on expanding their elevator and escalator service business. A key part of their strategy involves continuing to acquire smaller, specialized companies to add to their existing operations. Management has set long-term financial goals that include increasing their revenue and their adjusted EBITDA margin (a measure of a company's operational profitability) by 2028.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$198.00M
FY2024 Q4
$265.00M
FY2025 Q1
$50.00M
FY2025 Q2
$56.00M
FY2025 Q3
$201.00M
FY2025 Q4
$356.00M
FY2026 Q1
$67.00M
FY2026 Q2
$52.00M
Revenue
$2.25B
Net income
$99.00M
Diluted EPS
0.20
Operating cash flow
$83.00M
Free cash flow
$52.00M
Fetching…
Sources
Revenue
$1.98B
Net income
$57.00M
Diluted EPS
0.12
Operating cash flow
$85.00M
Free cash flow
$67.00M
Fetching…
Sources
Revenue
$2.12B
Net income
$97.00M
Diluted EPS
-1.16
Operating cash flow
$382.00M
Free cash flow
$356.00M
Fetching…
Sources
Revenue
$2.08B
Net income
$93.00M
Diluted EPS
0.20
Operating cash flow
$232.00M
Free cash flow
$201.00M
Fetching…
Sources
Revenue
$1.99B
Net income
$77.00M
Diluted EPS
0.16
Operating cash flow
$83.00M
Free cash flow
$56.00M
Fetching…
Sources
Revenue
$1.72B
Net income
$35.00M
Diluted EPS
0.11
Operating cash flow
$62.00M
Free cash flow
$50.00M
Fetching…
Sources
Revenue
$1.86B
Net income
$67.00M
Diluted EPS
0.05
Operating cash flow
$283.00M
Free cash flow
$265.00M
Fetching…
Sources
Revenue
$1.83B
Net income
$69.00M
Diluted EPS
0.23
Operating cash flow
$220.00M
Free cash flow
$198.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $21.26 vs current price $36.76
Wall Street consensus is the average analyst price target: $52.36 (146.3% higher than our fair-value estimate).
Our most-likely fair value is $21.26 a share — about 42.2% below today's price of $36.76, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $3.0B. Interest coverage 3.9x.
Net debt
$2.99B
Interest coverage
3.93x
APi Group Corporation's profit covers its interest bill about 3.9 times over.
Stretched
Worse cushion
Baseline
Better cushion
APG
BASELINE
APi Group Corporation
Total debt $3.84B Interest coverage 3.93x This is the baseline the peer rows are being compared against.
Total debt $4.05B Interest coverage 5.92x +51% vs APG Carries about 1.5x more debt cushion than APG.
Total debt $548.03M Interest coverage 130.49x +3,221% vs APG Carries about 33.2x more debt cushion than APG.
Total debt $3.24B Interest coverage 3.77x -4% vs APG Has roughly the same debt cushion as APG.
Total debt $336.82M Interest coverage 20.90x +432% vs APG Carries about 5.3x more debt cushion than APG.
What you should know
The case for and against APG
3 Rewards
0 Risks
Rewards
-
Revenue grew 6.7% last year.
-
Returns 10.3% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
18.49x
P/B
4.35x
P/S
1.88x
EV/EBITDA
17.56x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
31.4%
Operating margin
9.1%
Net margin
4.1%
ROE
10.3%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.09x
Current ratio
1.39x
Quick ratio
1.25x
Total debt
$3.84B
Total cash
$851.00M
Growth
How the business has been compounding
Revenue TTM
$8.44B
Revenue 5Y CAGR
19.0%
EPS TTM
-0.61
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$782.00M
Free CF TTM
$663.00M
FCF margin
7.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
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Last ex-div date
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