Investment Thesis
APi Group demonstrates solid operational fundamentals with strong revenue growth of 12.7% YoY and robust free cash flow generation of $663M, supported by healthy liquidity and manageable leverage. However, profitability metrics are modest with net margins at 3.8% and ROE at 8.9%, suggesting the business operates in a capital-intensive, competitive industry with limited pricing power, which warrants a measured approach.
APG Strengths
- Strong revenue growth of 12.7% YoY indicating solid market demand and business expansion
- Excellent free cash flow generation of $663M with 8.4% FCF margin, demonstrating operational cash generation capability
- Healthy balance sheet with debt-to-equity of 0.81x and strong interest coverage of 16.3x providing financial flexibility
- Solid liquidity with current ratio of 1.50x and $912M in cash, adequate for operational needs and debt service
- Exceptional net income growth of 204.9% YoY suggesting operating leverage and cost management improvements
APG Risks
- Low net profit margin of 3.8% and modest ROE of 8.9% indicate limited earnings power relative to capital deployed
- Operating margin of 7.0% leaves minimal cushion for operational challenges or margin compression in competitive service markets
- Significant long-term debt of $2.8B represents meaningful obligation despite strong coverage, limiting financial flexibility
- Discrepancy between net income growth (+204.9%) and EPS decline (-23.2%) suggests substantial share dilution or non-core gains inflating earnings
- High insider trading activity (19 Form 4 filings in 90 days) warrants monitoring for potential insider concerns
Key Metrics to Watch
- Operating margin trend - critical indicator of business pricing power and operational efficiency
- Free cash flow sustainability and conversion rate - determines capital allocation capacity
- Debt reduction progress and debt-to-EBITDA ratio - monitors deleveraging trajectory
- Gross margin stability - early warning indicator of competitive or input cost pressures
- Return on Equity trajectory - measures improvement in capital efficiency and profitability
APG Financial Metrics
APG Profitability Ratios
APG Balance Sheet & Liquidity
APG 5-Year Financial Trend
5-Year Trend Summary: APi Group Corp's revenue has grown significantly by 101% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.46 indicates the company is currently unprofitable.
APG Growth Metrics (YoY)
APG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.8B | $35.0M | $0.15 |
| Q2 2025 | $1.7B | $35.0M | $0.15 |
| Q1 2025 | $1.6B | $35.0M | $0.11 |
| Q3 2024 | $1.8B | $26.0M | $0.15 |
| Q2 2024 | $1.7B | $26.0M | $0.12 |
| Q1 2024 | $1.6B | $26.0M | $0.05 |
| Q3 2023 | $1.7B | -$7.0M | $0.06 |
| Q2 2023 | $1.6B | -$7.0M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APG Capital Allocation
APG SEC Filings
Access official SEC EDGAR filings for APi Group Corp (CIK: 0001796209)