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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.0%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, APi Group Corp (APG) receives a "Hold" rating with a composite score of 47.0/100, ranked #964 out of 4446 stocks. Key factor scores: Quality 50/100, Value 50/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
APi Group Corp (APG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does APi Group Corp Do?
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. APi Group Corp (APG) is classified as a large-cap stock in the Industrials sector, specifically within the Construction industry. The company is led by CEO Russell A. Becker and employs approximately 26,000 people. With a market capitalization of $17.9B, APG is one of the prominent companies in the Industrials sector.
APi Group Corp (APG) Stock Rating — Hold (April 2026)
As of April 2026, APi Group Corp receives a Hold rating with a composite score of 47.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.APG ranks #964 out of 4,446 stocks in our coverage universe. Within the Industrials sector, APi Group Corp ranks #165 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
APG Stock Price and 52-Week Range
APi Group Corp (APG) currently trades at $44.41. The stock gained $0.27 (0.6%) in the most recent trading session. The 52-week high for APG is $51.95, which means the stock is currently trading -14.5% from its annual peak. The 52-week low is $30.76, putting the stock 44.4% above its annual trough. Recent trading volume was 2.4M shares, reflecting moderate market activity.
Is APG Overvalued or Undervalued? — Valuation Analysis
APi Group Corp (APG) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 68.99x, compared to the Industrials sector average of 28.33x — a premium of 144%. The price-to-book ratio stands at 5.55x, versus the sector average of 2.23x. The price-to-sales ratio is 2.48x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, APG trades at 40.72x EV/EBITDA, versus 5.70x for the sector.
Overall, APG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
APi Group Corp Profitability — ROE, Margins, and Quality Score
APi Group Corp (APG) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.0%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.1% versus the sector average of 3.3%.
On a margin basis, APi Group Corp reports gross margins of 31.2%, compared to 35.8% for the sector. The operating margin is 6.9% (sector: 6.2%). Net profit margin stands at 3.5%, versus 3.9% for the average Industrials stock. Revenue growth is running at 20.5% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
APG Debt, Balance Sheet, and Financial Health
APi Group Corp has a debt-to-equity ratio of 81.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.50x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.76B. Cash and equivalents stand at $555M.
APG has a beta of 1.10, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for APi Group Corp is 55/100, reflecting average volatility within the normal range for its sector.
APi Group Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, APi Group Corp reported revenue of $7.62B and earnings per share (EPS) of $-0.69. Net income for the quarter was $274M. Gross margin was 31.2%. Operating income came in at $532M.
In FY 2025, APi Group Corp reported revenue of $7.91B and earnings per share (EPS) of $-0.69. Net income for the quarter was $302M. Gross margin was 31.4%. Revenue grew 12.7% year-over-year compared to FY 2024. Operating income came in at $554M.
In Q3 2025, APi Group Corp reported revenue of $2.08B and earnings per share (EPS) of $0.20. Net income for the quarter was $93M. Gross margin was 31.3%. Revenue grew 14.2% year-over-year compared to Q3 2024. Operating income came in at $163M.
In Q2 2025, APi Group Corp reported revenue of $1.99B and earnings per share (EPS) of $0.17. Net income for the quarter was $77M. Gross margin was 30.9%. Revenue grew 15.0% year-over-year compared to Q2 2024. Operating income came in at $143M.
Over the past 8 quarters, APi Group Corp has demonstrated a growth trajectory, with revenue expanding from $1.73B to $7.62B. Investors analyzing APG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
APG Dividend Yield and Income Analysis
APi Group Corp (APG) does not currently pay a dividend. This is common among growth-oriented companies in the Construction industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
APG Momentum and Technical Analysis Profile
APi Group Corp (APG) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
APG vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing APG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full APG vs S&P 500 (SPY) comparison to assess how APi Group Corp stacks up against the broader market across all factor dimensions.
APG Next Earnings Date
No upcoming earnings date has been announced for APi Group Corp (APG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy APG? — Investment Thesis Summary
APi Group Corp presents a balanced picture with arguments on both sides.
In summary, APi Group Corp (APG) earns a Hold rating with a composite score of 47.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on APG stock.
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Institutional Research Dossier
APi Group Corp (APG) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
APi Group Corp (APG) currently holds a Hold rating, justified by a composite score of 46.6/100. While the company demonstrates robust revenue growth and operates in essential service sectors, its high valuation multiples, negative free cash flow, and significant debt burden temper our enthusiasm. The company's strategic focus on safety, specialty, and industrial services provides diversification, but its ability to translate revenue growth into sustainable profitability and cash generation remains a key concern.
The primary takeaway is that APG's future performance hinges on its ability to improve operational efficiency, manage its debt effectively, and demonstrate consistent free cash flow generation. While the company's growth prospects are promising, particularly in the safety services segment, the current valuation does not offer a compelling risk-reward profile given the existing financial challenges. A more attractive entry point may present itself if the company can address these issues and improve its financial metrics.
Business Strategy & Overview
APi Group operates across three distinct segments: Safety Services, Specialty Services, and Industrial Services. This diversification allows the company to participate in various aspects of construction, maintenance, and infrastructure development. The Safety Services segment, focusing on fire protection and integrated occupancy systems, is particularly attractive due to the recurring nature of inspection, monitoring, and service contracts. This segment provides a stable revenue stream and is less susceptible to economic cycles compared to the other two segments.
The Specialty Services segment caters to infrastructure and specialized industrial plant needs, including maintenance and repair of underground utilities. This segment benefits from the aging infrastructure in North America and the increasing demand for upgrades and repairs. The Industrial Services segment, while exposed to the cyclicality of the energy industry, provides essential services to pipeline infrastructure and related facilities. APi Group's strategy involves acquiring and integrating companies within these segments to expand its geographic reach and service offerings.
A key element of APi Group's strategy is its focus on acquiring companies with strong local reputations and established customer relationships. This approach allows the company to quickly gain market share and leverage existing infrastructure. The company also emphasizes cross-selling opportunities, offering a wider range of services to its existing customer base. This strategy aims to increase customer retention and improve overall profitability.
However, the integration of acquired companies can be challenging, and APi Group must effectively manage these integrations to realize the expected synergies. The company's ability to maintain its focus on high-margin services and control costs will be crucial for improving its financial performance. Furthermore, the company's exposure to the energy industry introduces a degree of cyclicality and risk, which must be carefully managed.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
20.5%
Sector: 6.4%
+222% VS SCTR
Economic Moat Analysis
APi Group possesses a narrow economic moat, primarily derived from switching costs and, to a lesser extent, intangible assets. In the Safety Services segment, particularly fire protection, the recurring nature of inspections, monitoring, and maintenance creates switching costs for customers. Once a system is installed and a service provider is established, customers are often reluctant to switch due to the potential disruption and the need to re-establish trust and compliance with safety regulations.
The company's reputation and established relationships within the Specialty Services segment also contribute to its narrow moat. In the infrastructure and industrial plant services sector, customers often rely on providers with a proven track record and specialized expertise. APi Group's experience and reputation in this area provide a competitive advantage, making it more difficult for new entrants to gain market share.
However, the moat is not particularly wide due to the fragmented nature of the construction and industrial services industries. While APi Group has a significant presence in its chosen markets, it faces competition from numerous local and regional players. The company's ability to maintain its competitive advantage depends on its ability to consistently deliver high-quality services and maintain strong customer relationships.
Furthermore, the Industrial Services segment is more susceptible to competitive pressures due to the cyclicality of the energy industry and the commoditized nature of some of the services offered. This segment's contribution to the overall moat is limited. The company's ability to expand its moat will depend on its ability to further differentiate its services, build stronger customer relationships, and leverage its scale to achieve cost advantages.
Financial Health & Profitability
APi Group's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a 20.5% increase compared to the sector average of 6.6%. This growth is primarily driven by acquisitions and organic expansion within its various service segments. However, the company's profitability metrics, such as ROE (8.0%) and net margin (3.5%), are slightly below the sector averages of 9.2% and 3.7%, respectively. This suggests that while the company is growing its top line, it is struggling to translate that growth into improved profitability.
A significant concern is the company's negative free cash flow of -$30.39 million. This indicates that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. This negative free cash flow is particularly concerning given the company's high debt burden. The company's total debt stands at $2.76 billion, resulting in a debt-to-equity ratio of 81.00, which is higher than the sector average of 70.00. This high level of debt increases the company's financial risk and limits its flexibility to pursue growth opportunities.
The company's current ratio of 1.50 indicates that it has sufficient short-term liquidity to meet its current obligations. However, the company's reliance on debt financing and its negative free cash flow raise concerns about its long-term financial sustainability. The quarterly financial history reveals a consistent trend of revenue growth, but also fluctuating net income and margins. The company's gross margin has improved from 28.0% in FY2023 to 31.4% in FY2025, indicating some improvement in operational efficiency. However, the operating margin has remained relatively stable, suggesting that the company is facing challenges in controlling its operating expenses.
Overall, APi Group's financial health is characterized by strong revenue growth, but also high debt, negative free cash flow, and below-average profitability. The company needs to improve its operational efficiency, manage its debt effectively, and generate consistent free cash flow to improve its financial stability and create long-term value for shareholders.
Valuation Assessment
APi Group's valuation appears stretched based on several key metrics. The company's P/E ratio of 62.2x is significantly higher than the sector average of 27.7x, suggesting that investors are paying a premium for the company's earnings. Similarly, the company's EV/EBITDA ratio of 8.9x is higher than the sector average of 5.7x, indicating that the company is also expensive relative to its enterprise value and operating performance.
Given the company's negative free cash flow, a traditional FCF yield analysis is not applicable. However, the lack of positive free cash flow further supports the argument that the company's valuation is high. The company's strong revenue growth of 20.5% partially justifies the premium valuation, but the company's profitability and cash flow metrics need to improve to support the current valuation levels.
The company's valuation may be based on expectations of future growth and improved profitability. However, these expectations are not guaranteed, and the company faces significant challenges in achieving its growth targets and improving its financial performance. The company's high debt burden and negative free cash flow also increase the risk associated with its valuation.
Overall, APi Group's valuation appears expensive relative to its current financial performance and its sector peers. While the company has strong growth prospects, the current valuation does not offer a compelling risk-reward profile. A more attractive entry point may present itself if the company can improve its profitability, generate consistent free cash flow, and reduce its debt burden.
Risk & Uncertainty
APi Group faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is the company's high debt burden. The company's total debt of $2.76 billion increases its financial risk and limits its flexibility to pursue growth opportunities. Rising interest rates could further increase the company's debt servicing costs and reduce its profitability.
Another significant risk is the company's reliance on acquisitions for growth. While acquisitions can be a valuable tool for expanding market share and service offerings, they also carry integration risks. The company must effectively integrate acquired companies to realize the expected synergies and avoid disruptions to its operations. Failure to successfully integrate acquisitions could negatively impact the company's financial performance.
The company's exposure to the cyclicality of the energy industry also presents a risk. The Industrial Services segment, which provides services to pipeline infrastructure and related facilities, is susceptible to fluctuations in energy prices and demand. A downturn in the energy industry could reduce demand for the company's services and negatively impact its revenue and profitability.
Furthermore, the company faces competition from numerous local and regional players in the construction and industrial services industries. The company must continuously innovate and differentiate its services to maintain its competitive advantage. Failure to do so could result in loss of market share and reduced profitability. Regulatory changes and compliance requirements also pose a risk to the company. Changes in safety regulations or environmental regulations could increase the company's costs and require it to make significant investments in new technologies and processes.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAPi Group's diversified service offerings across safety, specialty, and industrial sectors provide resilience and growth opportunities, making it well-positioned to capitalize on infrastructure spending and safety regulations.
BULL VIEWThe company's focus on recurring revenue streams, particularly in the Safety Services segment, provides a stable foundation for future growth and profitability, reducing its reliance on cyclical projects.
BULL VIEWAPi Group's acquisition strategy allows it to rapidly expand its geographic footprint and service capabilities, creating synergies and driving long-term value for shareholders.
The Bear Case
BEAR VIEWAPi Group's high debt burden and negative free cash flow raise concerns about its financial sustainability and ability to fund future growth initiatives without further diluting shareholders.
BEAR VIEWThe company's premium valuation, with a P/E ratio significantly higher than the sector average, is not justified by its current profitability and cash flow metrics, making it vulnerable to a correction.
BEAR VIEWAPi Group's reliance on acquisitions for growth exposes it to integration risks and potential overpayment for acquired companies, which could negatively impact its financial performance and shareholder value.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score APG and 4,400+ other equities.
APi Group Corp exhibits a 326% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.1%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
31.2%
Sector: 35.8%
Operating Margin
Core business profitability
6.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
3.5%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
