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LGI LTD (AU:LGI)
ASX:LGI
Australian Market

LGI LTD (LGI) AI Stock Analysis

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AU:LGI

LGI LTD

(Sydney:LGI)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
AU$4.50
▲(15.98% Upside)
LGI LTD's overall stock score is primarily driven by its strong technical performance, indicating positive market momentum. However, the high P/E ratio suggests potential overvaluation, and financial performance highlights risks related to leverage and cash flow. Investors should weigh the growth potential against these financial risks.
Positive Factors
Revenue Growth
Strong revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and sustainability.
Operational Efficiency
High operational efficiency reflects effective cost management and competitive advantage, which are crucial for sustaining profitability over time.
Market Position
Strategic partnerships enhance market presence and product offerings, providing a durable competitive edge and growth opportunities.
Negative Factors
Rising Leverage
Increasing leverage can strain financial flexibility and elevate risk, potentially impacting long-term financial health and investment capacity.
Negative Free Cash Flow
Negative free cash flow suggests difficulties in generating cash from operations, which may hinder growth initiatives and financial stability.
Decreasing Net Profit Margin
A declining net profit margin can indicate cost pressures or inefficiencies, potentially affecting profitability and shareholder returns over time.

LGI LTD (LGI) vs. iShares MSCI Australia ETF (EWA)

LGI LTD Business Overview & Revenue Model

Company DescriptionLGI Limited provides carbon abatement and renewable energy solutions with biogas from landfill. It offers greenhouse gas abatement, biogas extraction infrastructure and management, renewable energy generation, and firming renewable solutions. The company engages in the design, construction, operation, maintenance, and monitoring of biogas extraction from landfill systems. It also drills wells and manufactures Type B compliant flares; and builds, owns, and operates biogas to renewable power stations on the landfills of its customers. The company was founded in 2009 and is based in Eagle Farm, Australia.
How the Company Makes MoneyLGI generates revenue primarily through the sale of its telecommunications equipment and software solutions. The company operates on a business-to-business (B2B) model, providing its products to telecommunications companies, enterprises, and service providers. Key revenue streams include direct sales of hardware, subscription fees for software-as-a-service (SaaS) offerings, and recurring revenue from maintenance and support contracts. Additionally, LGI may engage in strategic partnerships with other technology firms and telecommunications operators, which can enhance its market reach and contribute to joint revenue initiatives. The company also invests in research and development to innovate and expand its product portfolio, ensuring a steady flow of new offerings that can attract and retain customers.

LGI LTD Financial Statement Overview

Summary
LGI LTD demonstrates strong revenue growth and operational efficiency, as seen in its income statement. However, increasing leverage and negative free cash flow present potential risks. The company should focus on improving profitability and cash flow management to ensure long-term financial health.
Income Statement
75
Positive
LGI LTD has shown impressive revenue growth, particularly in the most recent year with a 43.3% increase. The company maintains strong gross and EBIT margins, indicating efficient operations. However, the net profit margin has slightly decreased, suggesting rising costs or other financial pressures. Overall, the income statement reflects a solid growth trajectory with some room for improvement in profitability.
Balance Sheet
68
Positive
The balance sheet shows a moderate debt-to-equity ratio, which has increased over time, indicating rising leverage. The return on equity has decreased, reflecting potential challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure. While the company is managing its debt well, the increasing leverage could pose future risks.
Cash Flow
55
Neutral
LGI LTD's cash flow statement reveals challenges with negative free cash flow, despite growth in operating cash flow. The free cash flow to net income ratio is negative, highlighting potential issues in converting income into cash. The operating cash flow to net income ratio is relatively healthy, indicating operational efficiency. The company needs to address its free cash flow concerns to improve financial stability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue25.66M36.73M33.25M32.30M15.82M6.55M
Gross Profit9.58M27.34M24.25M22.74M1.08M-3.88M
EBITDA17.19M17.32M15.31M13.38M11.86M6.57M
Net Income6.48M6.48M6.67M6.44M4.77M1.75M
Balance Sheet
Total Assets113.07M113.07M88.59M71.05M71.05M39.21M
Cash, Cash Equivalents and Short-Term Investments3.36M3.36M2.44M18.14M18.14M928.00K
Total Debt33.92M33.92M24.66M19.39M19.39M21.19M
Total Liabilities55.30M55.30M35.79M34.73M34.73M25.84M
Stockholders Equity57.77M57.77M52.80M36.31M36.31M13.37M
Cash Flow
Free Cash Flow-2.80M-6.23M-6.77M-4.37M-891.00K-508.00K
Operating Cash Flow12.32M12.32M9.91M6.96M7.40M3.26M
Investing Cash Flow-17.65M-17.65M-22.72M-11.26M-8.35M-2.51M
Financing Cash Flow6.25M6.25M15.19M3.46M902.00K-790.00K

LGI LTD Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.88
Price Trends
50DMA
4.18
Negative
100DMA
3.98
Negative
200DMA
3.47
Positive
Market Momentum
MACD
-0.08
Positive
RSI
35.88
Neutral
STOCH
11.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LGI, the sentiment is Negative. The current price of 3.88 is below the 20-day moving average (MA) of 4.08, below the 50-day MA of 4.18, and above the 200-day MA of 3.47, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LGI.

LGI LTD Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$14.47M15.8814.11%-11.85%6.25%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
66
Neutral
AU$401.35M53.2211.71%0.64%36.11%-3.31%
46
Neutral
AU$26.91M-10.31-11.34%-8.52%13.51%
45
Neutral
AU$19.18M-5.70-38.32%2.69%-273.87%
43
Neutral
AU$28.64M-3.19-129.44%-29.97%-284.16%
34
Underperform
AU$7.49M-0.42-84.32%91.54%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LGI
LGI LTD
3.88
0.86
28.48%
AU:CCE
Carnegie Clean Energy Ltd
0.07
0.03
73.68%
AU:JNS
ReNu Energy Limited
0.06
-0.14
-68.50%
AU:DEL
Delorean Corporation Ltd
0.13
-0.04
-23.53%
AU:LPE
Locality Planning Energy Holdings Limited
0.11
-0.03
-21.43%
AU:VPR
Volt Power Group Ltd
0.14
0.02
16.67%

LGI LTD Corporate Events

LGI Limited Director Increases Shareholding
Nov 21, 2025

LGI Limited has announced a change in the director’s interest notice, specifically involving Ms. Abigail Jane MacKenzie Cheadle. The change reflects Ms. Cheadle’s acquisition of 7,792 fully paid ordinary shares through a share purchase plan, increasing her total indirect holdings to 98,292 shares. This transaction highlights the director’s increased investment in the company, potentially signaling confidence in LGI Limited’s future prospects.

LGI Limited Reports Successful 2025 AGM Outcomes
Nov 19, 2025

LGI Limited announced the successful results of its 2025 Annual General Meeting, where all resolutions were passed by a poll. This outcome reflects strong shareholder support and positions LGI to continue its strategic initiatives in renewable energy and environmental solutions, potentially enhancing its industry standing and stakeholder confidence.

LGI Limited Issues Confidential Investor Document
Nov 19, 2025

LGI Limited has released a confidential document intended for sophisticated and professional investors, providing summary information about the company and its associated entities. The document emphasizes that it is not an offer document and does not constitute investment advice. It highlights the risks associated with investments and disclaims any liability for the accuracy or completeness of the information provided. The document also contains forward-looking statements that are subject to risks and uncertainties, and it advises recipients to seek independent advice before making investment decisions.

LGI LTD Reports Strong FY25 Performance with Significant Growth in Clean Energy Initiatives
Nov 19, 2025

LGI LTD has reported a successful FY25, marked by significant growth and operational achievements. The company signed six new contracts, expanded its electricity capacity by 44%, and increased its generation capacity at key power stations. LGI also advanced its battery capacity projects and supported new landfill gas carbon abatement methodologies. The company’s operational performance led to a 10% increase in net revenue and a 14% rise in EBITDA, reflecting its strong market positioning and commitment to clean energy solutions.

LGI Limited Announces Quotation of New Securities on ASX
Nov 17, 2025

LGI Limited has announced the quotation of 1,298,688 ordinary fully paid securities on the Australian Securities Exchange (ASX) with an issue date of November 19, 2025. This move is part of a previously announced transaction, and it signifies LGI’s ongoing efforts to enhance its market presence and provide value to its stakeholders.

LGI Limited Completes Oversubscribed Share Purchase Plan
Nov 17, 2025

LGI Limited has successfully completed its Share Purchase Plan (SPP), raising $4.99 million through the issuance of 1,298,688 new shares at $3.85 each. The SPP, which was oversubscribed, follows a previous $51.2 million placement and aims to support the company’s growth plans, including the development of new power stations and Battery Energy Storage Systems. This initiative reflects strong shareholder support and positions LGI to enhance its operations and market presence in the renewable energy sector.

LGI Limited Launches Share Purchase Plan to Boost Renewable Energy Projects
Oct 28, 2025

LGI Limited has announced a Share Purchase Plan (SPP) offering eligible shareholders the chance to purchase additional shares as part of a broader capital raising initiative. The SPP aims to raise up to $5 million, with proceeds allocated to accelerate high-priority projects and enhance the company’s financial capacity for future developments. This initiative reflects LGI’s strategic focus on expanding its renewable energy projects and strengthening its market position.

LGI Limited Announces Quotation of New Securities on ASX
Oct 27, 2025

LGI Limited has announced the application for quotation of 13,322,815 fully paid ordinary securities on the Australian Securities Exchange (ASX), with the issue date set for October 29, 2025. This move is part of a previously announced transaction, indicating LGI’s strategic efforts to enhance its market presence and liquidity, potentially impacting its stakeholders by increasing the company’s capital base and market visibility.

LGI Limited Issues Informational Document with Disclaimer
Oct 23, 2025

LGI Limited has released a document intended to provide summary information about the company and its associated entities. The document is not an offer or solicitation for investment, and it emphasizes that the information should not be relied upon for making investment decisions. The company disclaims any responsibility for the accuracy or completeness of the information provided, and it highlights the presence of forward-looking statements that involve risks and uncertainties.

LGI Limited Announces Proposed Securities Issue
Oct 23, 2025

LGI Limited has announced a proposed issue of 13,322,815 ordinary fully paid securities, with the proposed issue date set for October 29, 2025. This move is part of a placement or other type of issue, indicating a strategic effort to raise capital or expand its market presence, which could impact the company’s financial standing and stakeholder interests.

LGI Limited Announces Securities Purchase Plan
Oct 23, 2025

LGI Limited has announced a proposed issue of securities under a securities purchase plan, with a total of 1,298,701 ordinary fully paid securities to be issued. The offer is set to close on November 12, 2025, with the issue date scheduled for November 19, 2025. This move is aimed at raising capital, potentially impacting the company’s market positioning by providing additional financial resources for growth or operational needs.

LGI Limited Secures $51.2M in Capital to Boost Clean Energy Projects
Oct 23, 2025

LGI Limited has successfully completed a $51.2 million placement with institutional and sophisticated investors, alongside launching a $5 million Share Purchase Plan for existing shareholders. This capital raising will accelerate the execution of high conviction projects, including expansions at Mugga Lane, Belrose, and Nowra sites, and fund new development projects, strengthening LGI’s market position and balance sheet to pursue further growth opportunities.

LGI Limited Initiates Trading Halt for Capital Raising Announcement
Oct 21, 2025

LGI Limited has requested a trading halt on its securities pending an announcement regarding a proposed capital raising. This move indicates potential strategic financial maneuvers that could impact the company’s operations and market positioning, signaling possible growth or restructuring efforts to stakeholders.

LGI Limited Announces 2025 Hybrid AGM
Oct 17, 2025

LGI Limited has announced its 2025 Annual General Meeting (AGM), which will be held on November 19, 2025, at their Eagle Farm location in Queensland, as well as virtually. This hybrid meeting format allows shareholders the flexibility to attend either in person or online, ensuring broader participation and engagement. The announcement underscores LGI Limited’s commitment to shareholder accessibility and transparency, potentially enhancing stakeholder relations and reinforcing its market position.

LGI Limited Announces Change in Director’s Interest Notice
Oct 3, 2025

LGI Limited has announced a change in the director’s interest notice, specifically involving Mr. Vikas Bansal. The change pertains to the release of 283,333 shares from escrow, which were previously held under the VB Family Trust controlled by Mr. Bansal. This release does not alter the overall interest held by Mr. Bansal, as the total number of shares remains at 500,000 fully paid ordinary shares.

LGI Limited Announces Change in Director’s Interest
Oct 3, 2025

LGI Limited has announced a change in the director’s interest notice involving Ms. Abigail Jane MacKenzie Cheadle. The release details the release of 80,000 shares from escrow, which were previously held indirectly through entities controlled by Ms. Cheadle. This change does not affect the overall interest or the total holdings, as it results from the release of escrow conditions.

LGI Limited to Release 363,333 Shares from Voluntary Escrow
Sep 15, 2025

LGI Limited announced the release of 363,333 fully paid ordinary shares from voluntary escrow, effective 30 September 2025. This release aligns with the company’s previously detailed escrow arrangements and reflects LGI’s ongoing commitment to its operational and financial strategies, potentially impacting its market positioning and stakeholder interests.

LGI Limited Issues New Shares to Strengthen Market Position
Sep 8, 2025

LGI Limited has announced the issuance of 10,000 fully paid ordinary shares without disclosure to investors under specific provisions of the Corporations Act. This move signifies LGI’s compliance with relevant legislative requirements and highlights its ongoing efforts to enhance its market position and operational capabilities in the renewable energy sector.

LGI Limited Announces Quotation of New Securities
Sep 8, 2025

LGI Limited has announced the quotation of 10,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) as part of an employee incentive scheme. This move is expected to enhance the company’s market presence and provide additional liquidity, potentially benefiting stakeholders by aligning employee interests with company performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025