APi Group Corporation
APi Group Corporation Fundamental Analysis
APi Group Corporation (APG) shows weak financial fundamentals with a PE ratio of 56.59, profit margin of 3.70%, and ROE of 9.13%. The company generates $8.2B in annual revenue with weak year-over-year growth of 1.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze APG's fundamental strength across five key dimensions:
Efficiency Score
WeakAPG struggles to generate sufficient returns from assets.
Valuation Score
ModerateAPG shows balanced valuation metrics.
Growth Score
WeakAPG faces weak or negative growth trends.
Financial Health Score
ExcellentAPG maintains a strong and stable balance sheet.
Profitability Score
WeakAPG struggles to sustain strong margins.
Key Financial Metrics
Is APG Expensive or Cheap?
P/E Ratio
APG trades at 56.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, APG's PEG of -0.20 indicates potential undervaluation.
Price to Book
The market values APi Group Corporation at 4.87 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.10 times EBITDA. This signals the market has high growth expectations.
How Well Does APG Make Money?
Net Profit Margin
For every $100 in sales, APi Group Corporation keeps $3.70 as profit after all expenses.
Operating Margin
Core operations generate 7.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.13 in profit for every $100 of shareholder equity.
ROA
APi Group Corporation generates $3.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
APi Group Corporation generates limited operating cash flow of $787.20M, signaling weaker underlying cash strength.
Free Cash Flow
APi Group Corporation produces free cash flow of $687.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.59 in free cash annually.
FCF Yield
APG converts 3.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How APG Stacks Against Its Sector Peers
| Metric | APG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.59 | 25.83 | Worse (Expensive) |
| ROE | 9.13% | 1278.00% | Weak |
| Net Margin | 3.70% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.96 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.50 | 10.63 | Neutral |
| ROA | 3.28% | -1539613.00% (disorted) | Weak |
APG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews APi Group Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
168.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
161.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
55.60%
Industry Style: Cyclical, Value, Infrastructure
High Growth