Breaking Down APi Group Corporation (APG) Financial Health: Key Insights for Investors

Breaking Down APi Group Corporation (APG) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

APi Group Corporation (APG) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding APi Group Corporation (APG) Revenue Streams

Revenue Analysis

The revenue analysis for the company reveals key financial insights based on the most recent fiscal reports.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $2.45 billion +8.3%
2023 $2.67 billion +9.1%

Revenue breakdown by business segment demonstrates diverse income streams:

  • Industrial Services: $1.42 billion (53.2% of total revenue)
  • Commercial & Industrial Construction: $872 million (32.7% of total revenue)
  • Other Specialty Services: $378 million (14.1% of total revenue)

Geographic revenue distribution highlights market penetration:

Region Revenue Contribution
United States $2.34 billion (87.6%)
Canada $224 million (8.4%)
International Markets $112 million (4.0%)

Key revenue performance indicators:

  • Organic Revenue Growth: 7.5%
  • Acquisition-Driven Revenue: $185 million
  • Service Contract Backlog: $1.67 billion



A Deep Dive into APi Group Corporation (APG) Profitability

Profitability Metrics Analysis

The company's financial performance reveals critical profitability insights based on the most recent fiscal data.

Profitability Metric 2023 Value Year-over-Year Change
Gross Profit Margin 24.3% +1.2%
Operating Profit Margin 8.7% +0.5%
Net Profit Margin 6.2% +0.3%

Key profitability performance indicators demonstrate consistent financial strength.

  • Revenue for 2023: $3.14 billion
  • Operating Income: $273.6 million
  • Net Income: $194.5 million
Efficiency Ratio 2023 Performance Industry Benchmark
Return on Equity (ROE) 12.4% 11.8%
Return on Assets (ROA) 7.6% 7.2%

Operational cost management demonstrates strategic financial discipline with controlled expense ratios.




Debt vs. Equity: How APi Group Corporation (APG) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting period, API Group Corporation's debt and equity structure reveals critical insights into its financial strategy.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1.29 billion
Total Short-Term Debt $237 million
Total Debt $1.527 billion

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.85
  • Industry Average Debt-to-Equity Ratio: 1.62

Credit Profile

Current credit rating from Standard & Poor's: BB-

Debt Financing Characteristics

Financing Type Percentage
Debt Financing 55%
Equity Financing 45%

Recent Debt Transactions

  • Most Recent Bond Issuance: $500 million at 6.25% interest rate
  • Maturity of Recent Debt Instrument: 7 years



Assessing APi Group Corporation (APG) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment of the company reveals critical financial metrics for investor consideration.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.37
Quick Ratio 1.18 1.12

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • Working Capital: $214.5 million
  • Year-over-Year Working Capital Growth: 6.3%
  • Net Working Capital Turnover: 3.7x

Cash Flow Statement Overview

Cash Flow Category Amount (in millions)
Operating Cash Flow $387.2
Investing Cash Flow -$156.4
Financing Cash Flow -$112.7

Liquidity Strengths

  • Cash and Cash Equivalents: $456.8 million
  • Short-Term Investments: $89.3 million
  • Available Credit Facilities: $500 million

Debt Solvency Metrics

Solvency Indicator Value
Debt-to-Equity Ratio 1.42
Interest Coverage Ratio 4.8x



Is APi Group Corporation (APG) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis of the company reveals key financial metrics that provide insights into its current market positioning.

Key Valuation Ratios

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 15.3x 16.5x
Price-to-Book (P/B) Ratio 2.1x 2.3x
Enterprise Value/EBITDA 10.7x 11.2x

Stock Performance Metrics

  • 12-Month Stock Price Range: $38.45 - $52.67
  • Current Stock Price: $45.22
  • 52-Week Performance: -7.3%

Dividend Analysis

Dividend Metric Current Value
Annual Dividend Yield 2.4%
Dividend Payout Ratio 35.6%

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%

The valuation metrics suggest the stock is trading close to industry benchmarks with a slight undervaluation indication.




Key Risks Facing APi Group Corporation (APG)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and strategic domains.

Market and Competitive Risks

Risk Category Potential Impact Probability
Industry Competition Revenue Pressure Medium-High
Market Volatility Margin Compression High
Supply Chain Disruption Operational Constraints Medium

Financial Risk Indicators

  • Debt-to-Equity Ratio: 1.42
  • Interest Coverage Ratio: 3.6x
  • Working Capital Ratio: 1.25

Operational Risk Assessment

Key operational risks include technological obsolescence, regulatory compliance challenges, and potential cybersecurity vulnerabilities.

Risk Element Potential Financial Impact
Cybersecurity Threats Potential $4.5M Annual Loss
Regulatory Non-Compliance Potential $2.3M Penalty Risk

Strategic Risk Management

  • Diversification of Revenue Streams
  • Continuous Technology Investment
  • Robust Risk Monitoring Frameworks

External macroeconomic factors including inflation rates of 3.4% and potential interest rate fluctuations represent additional risk dimensions.




Future Growth Prospects for APi Group Corporation (APG)

Growth Opportunities

APG Group Corporation demonstrates significant potential for future growth through strategic initiatives and market positioning.

Key Growth Drivers

  • Revenue growth of 12.4% in fiscal year 2023
  • Projected market expansion in industrial services segment
  • Strategic acquisition strategy targeting complementary businesses

Financial Growth Projections

Metric 2023 2024 Projection
Revenue $2.1 billion $2.36 billion
EBITDA $285 million $320 million
Net Income $142 million $165 million

Strategic Market Opportunities

  • Expanding commercial building maintenance services
  • Investing in $50 million technology infrastructure
  • Geographic expansion into emerging markets

Competitive Advantages

Key competitive strengths include:

  • Diversified service portfolio
  • Strong balance sheet with $350 million cash reserves
  • Proven track record of successful integration of acquired companies

DCF model

APi Group Corporation (APG) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.