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APi GroupAPG +0.19%80 Degree of Operating Leverage is 1.70 as of Jun. 2026. GuruFocus rates APG with a GF Score™ of 80/100 and a GF Value™ of $28.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,746 Construction companies, APi Group ranks worse than 60.48% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
APi Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for APi Group's Degree of Operating Leverage or its related term are showing as below:
APG's Degree of Operating Leverage is ranked worse than 60.48% of 1746
companies
in the Construction industry
Industry Median: 0.935
vs APG: 1.70
APi Group (NYSE:APG) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
APi Group Degree of Operating Leverage Related Terms
APi Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for APi Group's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
APG vs J, MTZ, STRL: Degree of Operating Leverage Comparison
For the Engineering & Construction subindustry, APi Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
APi Group Degree of Operating Leverage vs Construction Industry
For the Construction industry and Industrials sector, APi Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where APi Group's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.70 mean?
APi Group (APG) has a Degree of Operating Leverage of 1.70 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for APi Group and its competitors. According to the industry distribution chart, APi Group ranks #1056 out of 1746 companies in the Construction industry, placing it in the top 60.5%.
Is APi Group's Degree of Operating Leverage too high?
APi Group's current Degree of Operating Leverage is 1.70. The Construction industry median Degree of Operating Leverage is 0.94. APi Group's value of 1.70 is 81.8% above this industry median. Based on the distribution chart, APi Group ranks #1056 out of 1746 companies in the Construction industry, which is below the industry midpoint. Overall, APi Group has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does APi Group's Degree of Operating Leverage compare to J and MTZ?
According to the Construction industry distribution chart, APi Group ranks #1056 out of 1746 companies for Degree of Operating Leverage. This places APi Group in the lower half of its industry. The industry median Degree of Operating Leverage is 0.94. APi Group's value of 1.70 is 81.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Construction company?
The median Degree of Operating Leverage among Construction companies is 0.94, based on 1,746 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. APi Group's current Degree of Operating Leverage of 1.70 is 81.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for APi Group and its competitors. For the Construction industry, the median Degree of Operating Leverage is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. APi Group's current Degree of Operating Leverage is 1.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is APi Group stock overvalued right now?
Based on GuruFocus' analysis, APi Group (APG) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.35, compared to a current price of $37.46 — trading 32.1% above its estimated fair value. The current Degree of Operating Leverage is 1.70 and 81.8% above the Construction industry median of 0.94. APi Group's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For APi Group (APG), the current Degree of Operating Leverage is 1.70 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is APi Group (APG) Overvalued in 2026?
Based on GuruFocus' analysis, APi Group stock appears to be overvalued.
The current stock price of $37.46 is trading 32.1% above its estimated GF Value™ of $28.35.
GuruFocus considers APi Group to be Significantly Overvalued.
Key valuation signals for APG:
Degree of Operating Leverage: 1.70
GF Value™: $28.35 vs. price of $37.46 (32.1% above fair value)
Industry Position: 81.8% above the Construction median (#1056 of 1746)
No single metric tells the full story. See the APG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
APi Group Corp operates in two segments: Safety Services segment includes providing safety services in North America, Asia Pacific, and Europe, focusing on end-to-end integrated occupancy systems (fire protection solutions, Heating, Ventilation, and Air Conditioning and entry systems), including design, installation, inspection, and service of these integrated systems. These services are provided in commercial, education, healthcare, high tech, industrial, and special-hazard settings. Specialty Services segment includes providing a variety of infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications infrastructure.
80GF Score
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