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APi Group
(NYSE:APG)
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Rating:69Neutral
Price Target:
$47.00
▲(16.39% Upside)
Action:Reiterated
Date:08/19/26
APG’s score is driven primarily by improving fundamentals (scaled revenue and better profitability, stronger balance sheet, and solid cash generation) and a strong latest earnings update with raised 2026 guidance and record backlog. Offsetting this, valuation is a key drag due to the negative P/E and no stated dividend yield, while technicals are only moderately supportive with near-term overbought signals.
Positive Factors
Recurring Revenue and Organic Growth
Strong inspection, service and monitoring demand supports repeatable revenue and customer retention. This recurring base, reinforced by compliance needs and pricing improvements, can provide durable growth and reduce reliance on isolated installation projects.
Negative Factors
Project Mix Pressures Margins
A larger project contribution can dilute margins because installation work is structurally less profitable than recurring inspection and service activity. This creates an ongoing execution challenge until projects convert into higher-margin lifecycle services.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue and Organic Growth
Strong inspection, service and monitoring demand supports repeatable revenue and customer retention. This recurring base, reinforced by compliance needs and pricing improvements, can provide durable growth and reduce reliance on isolated installation projects.
Read all positive factors
APi Group (APG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.61B
Dividend YieldN/A
Average Volume (3M)2.95M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth14.09%
EPS Growth-293.77%
CountryUS
Employees29,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.67
Shares Outstanding432,160,300
10 Day Avg. Volume2,515,278
30 Day Avg. Volume2,948,700
Financial Highlights & Ratios
PEG Ratio-2.39
Price to Book (P/B)4.67
Price to Sales (P/S)2.01
P/FCF Ratio24.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$51.75Price Target Upside28.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.72
Revenue Forecast (FY)$8.98B
APi Group Business Overview & Revenue Model
Company Description
APi Group Corporation operates as a global enterprise offering vital safety, specialized infrastructure, and industrial services across North America, Europe, Australia, and the Asia-Pacific region. Its business activities are segmented into three...
How the Company Makes Money
APG makes money primarily by contracting and servicing work on mission-critical safety and specialty systems for customers, generating revenue through a mix of project-based installation/retrofit work and recurring service activity. Key revenue st...
APi Group Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presents a largely positive picture: strong top-line growth (13.3% reported, 10.1% organic), notable outperformance in Specialty Services (23% growth and significant margin expansion), record backlog above $5 billion, improved profitability (adjusted EBITDA +14.3%) and solid cash generation with active M&A and capital allocation. Challenges are present—mainly a flat International Safety business this quarter, project/service mix pressure on gross margins, longer project durations, and modest FX/interest headwinds—but management provided clear mitigation actions (inspection-first strategy, disciplined project selection, bolt-on M&A) and raised full-year guidance. Overall, highlights significantly outweigh lowlights.Positive Updates
Strong Top-Line Growth
Reported net revenues of $2.25 billion for Q2, up 13.3% year-over-year; organic growth of 10.1% driven by inspection, service & monitoring strength, robust project activity and pricing improvements.
Negative Updates
International Safety Growth Lags
International Safety was flat in the quarter with only a return to organic growth in the back half; management cited project slippage, macro headwinds (e.g., Middle East conflict) and the need to further convert international operations to an inspection-first, recurring revenue model.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Reported net revenues of $2.25 billion for Q2, up 13.3% year-over-year; organic growth of 10.1% driven by inspection, service & monitoring strength, robust project activity and pricing improvements.
Read all positive updates
Company Guidance
APi raised its 2026 guidance, now expecting full-year net revenues of $8.875–$9.025 billion (up from $8.66–$8.86B), implying 7–9% organic growth and absorbing an estimated ~$30 million FX headwind; Q3 revenue is guided to $2.375–$2.425 billion (organic ~8–10%). Full-year adjusted EBITDA is now $1.205–$1.245 billion (≈13.7% margin at the midpoint, +16–20% growth year-over-year) with Q3 adjusted EBITDA of $325–$335 million (≈13.8% margin at midpoint, +16–19%); the guide assumes interest expense of ~$150 million, depreciation of ~$90 million, CapEx of ~$105 million, an adjusted effective tax rate of ~23%, and corporate expenses of roughly $140 million. Management also reiterated an adjusted diluted share count of ~439 million (after repurchasing ~1.6 million shares for $66 million), reported YTD adjusted free cash flow of $228 million and a full-year adjusted FCF conversion target of ~115%, and expects to deploy ~$250 million of bolt‑on M&A this year while scaling annual bolt‑on capacity toward $350 million in support of its long‑term 10/16/60+ targets.APi Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.44B | 7.91B | 7.02B | 6.93B | 6.56B | 3.94B |
| Gross Profit | 2.47B | 2.49B | 2.18B | 1.94B | 1.71B | 939.00M |
| EBITDA | 893.00M | 982.00M | 778.00M | 680.00M | 522.00M | 341.00M |
| Net Income | 346.00M | 302.00M | 250.00M | 153.00M | 73.00M | 47.00M |
Balance Sheet | ||||||
| Total Assets | 9.95B | 8.94B | 8.15B | 7.59B | 8.09B | 5.16B |
| Cash, Cash Equivalents and Short-Term Investments | 851.00M | 912.00M | 499.00M | 479.00M | 605.00M | 1.19B |
| Total Debt | 3.84B | 3.07B | 3.04B | 2.57B | 3.03B | 1.87B |
| Total Liabilities | 6.43B | 5.53B | 5.20B | 4.72B | 5.96B | 2.84B |
| Stockholders Equity | 3.52B | 3.41B | 2.95B | 2.87B | 2.13B | 2.32B |
Cash Flow | ||||||
| Free Cash Flow | 676.00M | 663.00M | 536.00M | 428.00M | 191.00M | 127.00M |
| Operating Cash Flow | 782.00M | 759.00M | 620.00M | 514.00M | 270.00M | 182.00M |
| Investing Cash Flow | -975.00M | -254.00M | -829.00M | -115.00M | -2.90B | -121.00M |
| Financing Cash Flow | 619.00M | -121.00M | 245.00M | -532.00M | 1.76B | 917.00M |
APi Group Technical Analysis
Negative
40.38
Price Trends
41.35
Negative
42.73
Negative
41.84
Negative
Market Momentum
0.08
Positive
47.52
Neutral
9.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APG, the sentiment is Negative. The current price of 40.38 is below the 20-day moving average (MA) of 41.83, below the 50-day MA of 41.35, and below the 200-day MA of 41.84, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 9.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APG.
APi Group Risk Analysis
APi Group disclosed 50 risk factors in its most recent earnings report. APi Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
APi Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $90.77B | 69.77 | 14.86% | 0.07% | 26.30% | 34.94% | |
69 Neutral | $17.61B | -61.52 | 10.11% | ― | 14.09% | -293.77% | |
66 Neutral | $10.57B | 29.28 | 18.85% | ― | 37.79% | 23.60% | |
65 Neutral | $19.82B | 39.17 | 15.30% | ― | 23.46% | 86.29% | |
64 Neutral | $17.66B | 52.79 | 9.81% | 1.01% | 20.03% | -28.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $8.08B | 29.46 | 12.54% | 1.69% | -4.24% | -44.22% |
* Industrials Sector Average
APG
APi Group
41.22
5.31
14.79%
ACM
Aecom
65.11
-58.98
-47.53%
DY
Dycom
310.91
54.42
21.22%
J
Jacobs Solutions
151.52
6.16
4.24%
MTZ
MasTec
248.73
64.29
34.86%
PWR
Quanta Services
616.73
231.10
59.93%
APi Group Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
APi Group boosts outlook after WTech Fire acquisition
Positive
Jul 2, 2026
On July 1, 2026, APi Group completed its acquisition of WTech Fire Group, a leading European provider of fire sprinkler, suppression and detection solutions. The deal, first announced in April 2026, expands APi’s international fire and life ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
APi Group boosts 2026 outlook after Onyx-Fire acquisition
Positive
Jun 9, 2026
On June 9, 2026, APi Group Corporation announced it had closed, on June 8, 2026, the acquisition of Onyx-Fire Protection Services, a leading inspection-first fire and life safety services provider in Canada, strengthening APi’s North America...
Executive/Board ChangesShareholder Meetings
APi Group Shareholders Endorse Board, Governance and Pay
Positive
May 19, 2026
At its virtual 2026 Annual Meeting of Shareholders held on May 15, 2026, APi Group shareholders elected nine directors to one-year terms, with all nominees receiving majority support despite some variation in vote margins. The meeting drew partici...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.