LGI LTD (LGI) AI Stock Analysis

• Market Cap: AU$376.52M
• Dividend Yield: 0.62%
• Average Volume (3M): 89.89K
• Price to Earnings (P/E): 46.1
• Beta (1Y): 0.89
• Revenue Growth: 36.11%
• EPS Growth: -3.31%
• Country: AU
• Employees: N/A
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.03
• 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$4.55
• Price Target Upside: 22.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): AU$43.76M

• Rating: 66 Neutral
• Price Target: AU$4.00 ▲(8.11% Upside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

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

A 43.3% year‑over‑year revenue jump indicates expanding product adoption and stronger market penetration. Durable top‑line growth supports scale benefits, funds R&D and sales investments, and underpins multi‑year contract growth typical in B2B and SaaS businesses.

Operational margins

Sustained strong gross and EBIT margins point to operational efficiency and pricing power across hardware and software offerings. Higher structural margins increase ability to reinvest, withstand competitive pressure, and sustain profitability through product mix and recurring service income.

Recurring revenue mix

A business model combining equipment sales with SaaS/subscription and maintenance revenue creates sticky, predictable cash streams. Recurring contracts with telco and enterprise clients raise customer lifetime value and enable steady revenue visibility over multiple quarters to years.

Negative Factors

Rising leverage

An increasing debt burden reduces financial flexibility for capex, R&D and strategic investments. Higher leverage raises fixed servicing costs and sensitivity to interest rates, constraining the company’s ability to fund growth organically or absorb economic stress without external financing.

Negative free cash flow

Negative free cash flow implies capital expenditures or working capital needs are outpacing cash generated. This limits the firm’s capacity to self‑fund expansion, repay debt or return capital, and means sustainable profit conversion requires addressing cash conversion or capex intensity.

Declining return metrics

Falling ROE and a slipping net margin signal reduced efficiency in turning capital and revenue into shareholder returns. This may reflect rising costs, pricing pressure, or capital dilution, which can impair long‑term return prospects unless operational or strategic changes improve profitability.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 3.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3.7 is above the 20-day moving average (MA) of 3.60, below the 50-day MA of 3.83, and above the 200-day MA of 3.69, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 62.67 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
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
LGI	66 Neutral	AU$376.52M	46.13	11.71%	0.62%	36.11%	-3.31%
VPR	55 Neutral	AU$23.73M	34.52	14.11%	―	-11.85%	6.25%
LPE	50 Neutral	AU$18.26M	-4.90	-38.32%	―	2.69%	-273.87%
CCE	44 Neutral	AU$22.43M	-7.86	-11.34%	―	-8.52%	13.51%
DEL	43 Neutral	AU$23.13M	-2.03	-129.44%	―	-29.97%	-284.16%
JNS	34 Underperform	AU$12.87M	0.05	-84.32%	―	―	91.54%

LGI LTD Corporate Events

LGI Limits Use of Confidential Investor Presentation With Extensive Disclaimers

LGI Ltd has issued a confidential investor presentation containing extensive legal disclaimers, clarifying that the material is for wholesale or professional investors and certain offshore recipients only and does not constitute an offer of securities. It stresses that the document is not a prospectus, has not been vetted by regulators, and that recipients must not treat it as comprehensive investment advice.

The release underscores that no party, including the company or its advisers, guarantees the accuracy, completeness or future performance implied by the information, and disclaims liability for reliance on it. It also emphasises restrictions on distribution, the presence of forward-looking statements subject to significant uncertainties, and the obligation of recipients to maintain confidentiality and seek independent advice.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

LGI boosts earnings and accelerates landfill‑to‑energy expansion in 1H FY26

LGI Ltd reported strong first‑half FY26 results, with revenue rising 20% to $20.3 million and EBITDA up 33% to $9.7 million, driven by higher biogas flows, renewable generation and carbon credit output. Statutory NPAT increased 28% to $3.1 million and the company declared a slightly higher interim dividend, reflecting confidence in earnings momentum.

Operational metrics showed sharp gains, including a 37% rise in biogas flows to 82 million cubic metres and a 41% lift in power generation to 70.3 GWh, aided by new and expanded sites. LGI also advanced its High Conviction project pipeline, backed by a $56.3 million oversubscribed capital raising, which will expand NEM capacity beyond 80 MW and underpins reaffirmed FY26 EBITDA growth guidance of 25%–30%.

The most recent analyst rating on (AU:LGI) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on LGI LTD stock, see the AU:LGI Stock Forecast page.

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.