APG - Margin Expansion Makes Additional Upside For APi Group Possible

2024-01-31 02:40:49 ET

Summary

• APi Group has experienced significant growth in revenue and profits, outperforming the market with an 11.5% increase in shares.
• This has been due to solid performance and management's ability to keep improving operations.
• Management has raised guidance for overall revenue and EBITDA, indicating a solid performance for the rest of 2023.
• Shares look closer to fair value, but margin expansion initiatives leave open the opportunity for additional upside.

One of the more interesting companies to me on the market in recent memory has been APi Group ( APG ). For those who don't know, APi Group has a few different operating segments. One of these is the Safety Services unit, which provides safety services in the markets in which it operates in the form of fire protection solutions, HVAC systems, and more. And then there is the Specialty Services segment, which is engaged in providing infrastructure services, as well as specialized industrial plant services. Examples there include engineering and design, fabrication, installation, maintenance and repair, and more....

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