APG
APi Group Corporation
Industrial/Transportation
04/05/2022
Presented
| Date | 03/29/2022 |
| Price | $22.15 |
| Market Cap | $3.84B |
| Ent Value | $6.18B |
| P/E Ratio | N/A |
| Book Value | $10.16 |
| Div Yield | 0% |
| Shares O/S | 173.29M |
| Ave Daily Vol | 894,899 |
| Short Int | 3.27% |
Current
| Price | $33.57 |
| Market Cap | $5.82B |
| APi Group Corp. provides life safety solutions and industrial specialty services. The firm offers specialty contracting services and solutions to the energy industry focused on transmission and distribution in the United States and Canada, and industrial services, including the retrofit and upgrading of existing pipeline facilities. It operates through the following segments: Safety Services, Specialty Services, and Industrial Services. The Safety Services segment provides safety services in North America and Europe, focusing on end-to-end integrated occupancy systems (fire protection solutions, HVAC, and entry systems), including design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides a variety of infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure such as electric, gas, water, sewer, and telecommunications infrastructure. The Industrial Services segment provides a variety of services to the energy industry focused on transmission and distribution. The company was founded by Ashken Ian Guy Handley, Lillie James E and Franklin Martin E in 1926 and is headquartered in New Brighton, MN. |
Publicly traded companies mentioned herein: API Group Corp (APG), Blackstone Inc (BX), Cintas Corp (CTAS), Element Solutions Inc (ESI), FirstService Corp (FSV), Newell Brands Inc (NWL), Nomad Foods Ltd (NOMD), Rollins Inc (ROL)
Highlights
The presenter is long shares of API Group (APG), a distribution, installation and industrial services business based in the UK. The company’s board co-chair is UK acquisition guru Martin E. Franklin, who is known for building consumer products conglomerate Jarden Corp (later acquired by NWL), frozen-foods business Nomad Foods Ltd (NOMD), and Platform Specialty Products Corp. (i.e., Element Solutions, ESI). The presenter described Franklin as having initially “burned” investors on Platform but later turned the company around by selling off several cyclical businesses. The presenter sees the low valuation of APG as attractive compared to peers trading in the 18x to 25x EBITDA range and expects the stock to rerate as the company shows strong EBITDA growth.
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