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LGI LTD
(Sydney:LGI)
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Rating:54Neutral
Price Target:
AU$2.50
▲(6.38% Upside)
Action:Reiterated
Date:07/08/26
LGI's overall score of 54 reflects a tension between strong financial fundamentals and severely negative technical and valuation signals. On the positive side, the company delivers impressive revenue growth (43.3%), robust margins, and a healthy balance sheet — hallmarks of a well-executing renewable energy business. However, the stock is in a pronounced downtrend, trading nearly 29% below its 200-day moving average with oversold but non-reversing momentum indicators, which heavily weighs on the score. The elevated P/E of 34.3x offers limited margin of safety, and negative free cash flow underscores ongoing capital intensity. While the fundamental story remains compelling for longer-term investors, near-term price action and valuation concerns present meaningful risk.
Positive Factors
Revenue Growth Acceleration
A ~43% YoY top-line acceleration in 2025 signals durable demand expansion and stronger market penetration. Sustained revenue growth provides a structural runway to scale operations, invest in capacity and R&D, and supports long-term margin and profitability improvement if conversion trends stabilize.
Negative Factors
Persistent Negative Free Cash Flow
Consistently negative free cash flow signals the business does not currently convert accounting profits into surplus cash. Over months this raises dependence on external financing for capex and working capital, constrains shareholder returns, and increases vulnerability if funding conditions tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Acceleration
A ~43% YoY top-line acceleration in 2025 signals durable demand expansion and stronger market penetration. Sustained revenue growth provides a structural runway to scale operations, invest in capacity and R&D, and supports long-term margin and profitability improvement if conversion trends stabilize.
Read all positive factors
LGI LTD (LGI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$227.57M
Dividend Yield1.23%
Average Volume (3M)89.89K
Price to Earnings (P/E)26.2
Beta (1Y)0.90
Revenue Growth14.53%
EPS Growth16.89%
CountryAU
Employees50
SectorUtilities
Sector Strength65
IndustryIndependent Power Producers
Share Statistics
EPS (TTM)0.08
Shares Outstanding103,440,280
10 Day Avg. Volume182,391
30 Day Avg. Volume89,895
Financial Highlights & Ratios
PEG Ratio-13.03
Price to Book (P/B)4.84
Price to Sales (P/S)7.61
P/FCF Ratio-44.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.56Price Target Upside51.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$45.67M
LGI LTD Business Overview & Revenue Model
Company Description
LGI Limited provides carbon abatement and renewable energy solutions with biogas from landfill in Australia. It operates through Renewable Energy, Carbon Abatement, and Infrastructure Construction and Management segments. The company offers greenh...
LGI LTD Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
75
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.13M | 36.73M | 33.25M | 32.30M | 15.82M | 6.55M |
| Gross Profit | -9.46M | 27.34M | 24.25M | 22.74M | 1.08M | -3.88M |
| EBITDA | 5.86M | 17.32M | 15.31M | 13.38M | 11.86M | 6.57M |
| Net Income | 7.16M | 6.48M | 6.67M | 6.44M | 4.77M | 1.75M |
Balance Sheet | ||||||
| Total Assets | 129.93M | 113.07M | 88.59M | 71.05M | 71.05M | 39.21M |
| Cash, Cash Equivalents and Short-Term Investments | 16.32M | 3.36M | 2.44M | 18.14M | 18.14M | 928.00K |
| Total Debt | 7.64M | 33.92M | 24.66M | 19.39M | 19.39M | 21.19M |
| Total Liabilities | 15.65M | 55.30M | 35.79M | 34.73M | 34.73M | 25.84M |
| Stockholders Equity | 114.28M | 57.77M | 52.80M | 36.31M | 36.31M | 13.37M |
Cash Flow | ||||||
| Free Cash Flow | -8.44M | -6.23M | -6.77M | -4.37M | -891.00K | -508.00K |
| Operating Cash Flow | 10.89M | 12.32M | 9.91M | 6.96M | 7.40M | 3.26M |
| Investing Cash Flow | -24.90M | -17.65M | -22.72M | -11.26M | -8.35M | -2.51M |
| Financing Cash Flow | 28.39M | 6.25M | 15.19M | 3.46M | 902.00K | -790.00K |
LGI LTD Technical Analysis
Negative
2.35
Price Trends
2.75
Negative
3.16
Negative
3.56
Negative
Market Momentum
-0.15
Positive
27.40
Positive
12.50
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 2.35 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.75, and below the 200-day MA of 3.56, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 27.40 is Positive, neither overbought nor oversold. The STOCH value of 12.50 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | AU$17.18M | 25.58 | 6.92% | ― | -8.32% | -67.69% | |
54 Neutral | AU$227.57M | 26.24 | 8.32% | 1.08% | 14.53% | 16.89% | |
54 Neutral | AU$81.19M | -26.43 | -13.64% | ― | 16.99% | ― | |
45 Neutral | AU$43.54M | -3.02 | -108.64% | ― | ― | -63.48% | |
42 Neutral | AU$21.46M | -11.43 | -7.75% | ― | ― | 16.28% | |
34 Underperform | AU$55.62M | -0.19 | -31.05% | ― | ― | ― |
* Utilities Sector Average
AU:LGI
LGI LTD
2.07
-1.50
-41.94%
AU:CCE
Carnegie Clean Energy Ltd
0.19
0.12
180.30%
AU:JNS
ReNu Energy Limited
0.30
0.18
150.00%
AU:14D
1414 Degrees Ltd.
0.06
0.03
103.57%
AU:VPR
Volt Power Group Ltd
0.11
-0.03
-18.52%
AU:BTE
Botala Energy Ltd.
0.05
-0.02
-31.43%
LGI LTD Corporate Events
LGI Sets FY26 Results Date and AGM Timetable
Jul 24, 2026
LGI Ltd will release its full‑year results for the period ended 30 June 2026 before market open on Friday, 21 August 2026, and will host an investor webinar the same day with its chief executive and chief financial officer to discuss the per...
LGI Strengthens Governance Team With New Joint Company Secretary
Jul 21, 2026
LGI Ltd has announced a change in its corporate governance team, appointing Cathy Montesin as Joint Company Secretary effective 21 July 2026, while long‑serving Company Secretary Dean Wilkinson retires from the role on the same date. Montesi...
LGI launches search for new chair as Vik Bansal sets retirement timetable
May 26, 2026
LGI Limited, a domestic market leader in landfill biogas recovery and conversion to renewable power, runs vertically integrated operations that design and manage gas infrastructure for waste disposal sites. The company focuses on producing renewab...
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.