How defensible is APi's position despite low structural moats?

In this Company episode of The Synopsis we talk about APi Global, a high quality B2B service provider that specializes in fire safety and other important business service verticals. The company has been undergoing a transition by eschewing one-off construction projects and moving to more recurring and higher margin service revenue.

In this episode we draw from our 61-page research report on APi Global to cover everything from their involvement with legendary investor Martin Franklin and the business transformation to the many types of services they offer and the large competition set they face. We hope you enjoy! 

**Learn more about our 61-page report here**

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Show Notes

~Section 1: Business History~

(0:00)  — Intro (6:22)  — Martin Franklin and The History of APi Group (13:12)  — Leading With Inspections (24:16)  — Smaller Project Focus and M&A (28:18)  — Chubb Acquisition and Improving Service Mix

~Section 2: Business Background~

(34:40)  — Revenue Segment Breakdown (42:15)  — The Shift to Recurring Revenues (45:50)  — Profitability

~Section 3: Industry and Competition~

(48:00)  — Industry and T.A.M (50:31)  — Competition and Competitive Advantages (1:05:00)  — APi Group Model and Industry Dynamics

~Section 4: Capital Allocation, Risk, and Valuation~

(1:26:05)  — Capital Allocation, FCF Conversion, and ROIC (1:34:35)  — Preferred Shares and Insider Ownership (1:36:06)  — Reverse DCF Valuation  (1:38:20)  — Risks (1:41:50)  — Outro

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. Contributors to the podcast may own securities discussed. Furthermore, accounts contributors advise on may also have positions in companies discussed. At the time of recording contributors had a position in APG. Furthermore, accounts contributors advise on also may have  a position in APG. This may change without notice. Please see our full disclaimers here:  https://speedwellresearch.com/disclaimer/