LGI LTD (LGI) AI Stock Analysis

• Market Cap: AU$382.73M
• Dividend Yield: 0.62%
• Average Volume (3M): 89.89K
• Price to Earnings (P/E): 52.8
• Beta (1Y): 0.88
• Revenue Growth: 36.11%
• EPS Growth: -3.31%
• Country: AU
• Employees: N/A
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.05
• Shares Outstanding: 103,440,280
• 10 Day Avg. Volume: 182,391
• 30 Day Avg. Volume: 89,895
• PEG Ratio: -13.04
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 7.61
• P/FCF Ratio: -44.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.78
• Price Target Upside: 15.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$4.00 ▼(-3.61% Downside)

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

Strong revenue growth trend

Consistent double-digit revenue growth (36% overall and a 43.3% year increase noted in income statement) demonstrates expanding market adoption and product traction. This durable top-line expansion supports scale, allows reinvestment in R&D and SaaS expansion, and underpins medium-term margin improvement potential.

High gross and EBIT margins

Sustained strong gross and EBIT margins indicate efficient operations and pricing power, providing a durable earnings buffer. These margins support reinvestment and absorb cost volatility, enabling operating leverage as revenue scales and improving the company’s ability to convert growth into sustained profitability over months to years.

Recurring B2B SaaS and maintenance revenue

A B2B model with subscription SaaS and recurring maintenance/support creates predictable revenue streams and higher customer lifetime value. Recurring contracts improve cash flow visibility, reduce volatility, and enable cross-sell and upsell, strengthening long-term revenue durability and resilience to cyclical demand shifts.

Negative Factors

Rising leverage

An increasing debt-to-equity trend raises financial risk and reduces strategic flexibility. Higher leverage increases interest burden and limits the company’s ability to fund R&D, capital projects, or weather revenue shocks, making deleveraging or improved cash generation necessary to sustain long-term growth plans.

Negative free cash flow

Negative free cash flow despite solid operating cash flow growth indicates weak cash conversion and structural funding needs. Persisting FCF deficits can force reliance on external financing, constrain capital allocation, and hinder debt reduction or shareholder returns unless free cash flow generation improves.

Declining return on equity and net margin

A declining ROE coupled with a slight drop in net profit margin signals weakening capital efficiency and margin pressure. Over the medium term this can reduce shareholder returns and limit internal funding for growth or innovation; management must address cost structure and capital allocation to restore returns.

LGI LTD Business Overview & Revenue Model

Company Description

LGI 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 Money

LGI 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.66M	36.73M	33.25M	32.30M	15.82M	6.55M
Gross Profit	9.58M	27.34M	24.25M	22.74M	1.08M	-3.88M
EBITDA	17.19M	17.32M	15.31M	13.38M	11.86M	6.57M
Net Income	6.48M	6.48M	6.67M	6.44M	4.77M	1.75M
Balance Sheet
Total Assets	113.07M	113.07M	88.59M	71.05M	71.05M	39.21M
Cash, Cash Equivalents and Short-Term Investments	3.36M	3.36M	2.44M	18.14M	18.14M	928.00K
Total Debt	33.92M	33.92M	24.66M	19.39M	19.39M	21.19M
Total Liabilities	55.30M	55.30M	35.79M	34.73M	34.73M	25.84M
Stockholders Equity	57.77M	57.77M	52.80M	36.31M	36.31M	13.37M
Cash Flow
Free Cash Flow	-2.80M	-6.23M	-6.77M	-4.37M	-891.00K	-508.00K
Operating Cash Flow	12.32M	12.32M	9.91M	6.96M	7.40M	3.26M
Investing Cash Flow	-17.65M	-17.65M	-22.72M	-11.26M	-8.35M	-2.51M
Financing Cash Flow	6.25M	6.25M	15.19M	3.46M	902.00K	-790.00K

LGI LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.15 is above the 20-day moving average (MA) of 4.03, above the 50-day MA of 4.06, and above the 200-day MA of 3.62, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 25.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LGI.

LGI LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VPR	75 Outperform	AU$27.00M	19.41	14.11%	―	-11.85%	6.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
LGI	66 Neutral	AU$382.73M	52.81	11.71%	0.62%	36.11%	-3.31%
CCE	49 Neutral	AU$29.76M	-11.41	-11.34%	―	-8.52%	13.51%
LPE	47 Neutral	AU$17.35M	-4.92	-38.32%	―	2.69%	-273.87%
DEL	40 Underperform	AU$20.93M	-2.33	-129.44%	―	-29.97%	-284.16%
JNS	34 Underperform	AU$14.63M	-0.84	-84.32%	―	―	91.54%

LGI LTD Corporate Events

LGI to Release H1 FY26 Results and Host Investor Webinar on 20 February

LGI Limited has announced that it will release its half-year financial results for the period ended 31 December 2025 before market open on Friday, 20 February 2026. The company will host an investor webinar on the same day, led by CEO Jarryd Doran and CFO Dean Wilkinson, to discuss the financial performance and operational developments, with a recording to be made available afterwards, underscoring LGI’s efforts to maintain active engagement and transparency with investors and stakeholders.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.70 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI CFO Dean Wilkinson to Retire in 2026 as Company Begins Succession Process

LGI Limited has announced that its Chief Financial Officer and Joint Company Secretary, Dean Wilkinson, will retire in September 2026 after nearly nine years with the company. Wilkinson will remain in his role through the current reporting cycle, signing the full-year audited accounts and presenting annual results alongside the CEO, while LGI undertakes a comprehensive search for his successor to ensure an orderly leadership transition, underscoring the company’s focus on continuity in financial stewardship and governance as it continues to execute its growth strategy in the clean energy sector.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI Limited Director Increases Shareholding

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.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.84 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI Limited Reports Successful 2025 AGM Outcomes

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.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.84 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI Limited Issues Confidential Investor Document

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.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.84 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI LTD Reports Strong FY25 Performance with Significant Growth in Clean Energy Initiatives

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.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.84 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI Limited Announces Quotation of New Securities on ASX

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.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.80 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI Limited Completes Oversubscribed Share Purchase Plan

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.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.80 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.