CluenexAPi Group APG
APi Group scores weak on business quality (4.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What APi Group does
APi Group provides safety and specialty services, installing and maintaining life safety systems and infrastructure for commercial customers who pay for mandatory compliance. The business relies on recurring inspection contracts to drive dependable service revenue across its global footprint.
- What it does best
APi excels at generating steady free cash flow, posting $676 million in free cash flow on $8.4 billion of revenue. This conversion outpaces peers like MTZ with its 1.5% FCF margin, supported by a heavy mix of recurring statutory inspection work that locks in clients.
- The main risk
Net income sits at negative $248 million despite growing revenue, exposing the firm to severe margin compression if cost inflation outpaces its ability to re-price recurring service contracts.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 9.0% while net margin is negative at -2.9% due to heavy overhead costs, showing that scale has not yet translated into clean bottom-line profits.
Statutory safety requirements create a regulatory lock-in for commercial customers who cannot easily swap providers, though a low moat score of 3.6 shows this advantage lacks heavy proprietary barriers.
Revenue reached $8.4 billion with growth at 12.7%, landing in the top quartile of its sector at the 82nd percentile, continuing an upward trend visible across recent annual reports.
Total debt of $2.8 billion outweighs cash of $912 million, while interest coverage of 5.8x leaves limited margin for error if earnings soften, leaving the balance sheet under moderate pressure.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on APG
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
APi Group scores weak on the Cluenex quality check (4.5 of 10), measured against its own industry. Profitability is weak, moat weak, growth steady and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026, before the open.
See APG today
- Today's verdict on APG, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “APi Group (APG)”, https://cluenex.com/stocks/apg/, data as of Oct 10, 2026.