Api Group Story

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APG -- USA Stock  

USD 22.14  0.27  1.23%

It looks as if Api Group may not recover as fast as we have hopped for as its price went down 1.04% today. This firm current daily volatility is 2.01 percent, with a beta of -0.32 and an alpha of 0.16 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to digest Api Group Corp based on its technical indicators. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Chances of Api Group to dip after the volatility ascents
Api Group Corp has roughly 467 M in cash with 784 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.69.
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Api Group indicates not a very effective usage of assets in March.
Investing in Api Group, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Api Group along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Api Group's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Api Group in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Api Group. Your research has to be compared to or analyzed against Api Group's peers to derive any actionable benefits. When done correctly, Api Group's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Api Group Corp.

How important is Api Group's Liquidity

Api Group financial leverage refers to using borrowed capital as a funding source to finance Api Group Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Api Group financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Api Group's total debt and its cash.

How Api Group utilizes its cash?

To perform a cash flow analysis of Api Group, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Api Group is receiving and how much cash it distributes out in a given period. The Api Group cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Api Group Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 496 Million

Api Group Correlation with Peers

Investors in Api Group can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Api Group Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Api Group and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Api Group is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Api Group for more details

Going after Api Group Financials

We consider Api Group not too volatile. Api Group Corp secures Sharpe Ratio (or Efficiency) of 0.058, which signifies that the company had 0.058% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Api Group Corp, which you can use to evaluate future volatility of the firm. Please confirm Api Group Corp Mean Deviation of 1.4, downside deviation of 2.01, and Risk Adjusted Performance of 0.0646 to double-check if the risk estimate we provide is consistent with the expected return of 0.12%.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another setback for Api Group shareholders

Latest semi variance is at 3.2. Api Group Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.16. However, we advise investors to further question Api Group Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Api Group's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Api Group's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Api Group

Although some other firms in the engineering & construction industry are either recovering or due for a correction, Api Group may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 24th of March 2021, our current 30 days 'Buy-vs-Sell' recommendation on the firm is Hold. We believe Api Group is overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Api Group Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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