LGI LTD (LGI) AI Stock Analysis

• Market Cap: AU$266.43M
• Dividend Yield: 0.83%
• Average Volume (3M): 9.61K
• Price to Earnings (P/E): 44.4
• Beta (1Y): 0.42
• Revenue Growth: 27.85%
• EPS Growth: -15.52%
• Country: AU
• Employees: N/A
• Sector: Utilities
• Sector Strength: 77
• Industry: Renewable Utilities
• EPS (TTM): 0.07
• Shares Outstanding: 88,808,770
• 10 Day Avg. Volume: 11,298
• 30 Day Avg. Volume: 9,605
• PEG Ratio: -4.36
• Price to Book (P/B): 4.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -48.25
• 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$3.48
• Price Target Upside: 16.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

LGI LTD scores well in financial performance, driven by strong revenue growth and profitability, but faces challenges with high leverage and negative free cash flow. Technical analysis indicates positive momentum, though overbought conditions could pose short-term risks. High valuation limits further upside, while dividend yield offers modest income potential.

LGI LTD Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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LGI LTD Financial Statement Overview

Summary

LGI LTD demonstrates strong revenue growth and profitability improvements, particularly in its income statement metrics. The balance sheet shows a stable financial foundation, though leverage remains a risk. Cash flow performance is mixed, with high reinvestment impacting free cash flow negatively. The company is well-positioned in the renewable utilities industry, but careful management of debt and capital expenditures will be crucial for sustained financial health.

Income Statement

LGI LTD has shown impressive revenue growth, with a significant increase in total revenue from 2023 to 2024. The company exhibits a strong gross profit margin, indicating efficient cost management. The net profit margin has improved, demonstrating enhanced profitability. Both EBIT and EBITDA margins are robust, highlighting strong operational performance.

Balance Sheet

The company's balance sheet reflects a solid equity position with an improving equity ratio, which underscores financial stability. However, the debt-to-equity ratio indicates a relatively high level of leverage, which could pose risks if not managed carefully. Return on equity has shown favorable growth, reflecting efficient use of shareholder funds.

Cash Flow

While LGI LTD's operating cash flow is positive and growing, the free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio suggests strong cash conversion from profits. However, the negative free cash flow to net income ratio is a concern, as it indicates heavy reinvestment that hasn't yet translated into free cash flow.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
25.64M	33.25M	32.30M	15.82M	6.55M	4.17M
	Gross Profit
18.65M	24.25M	22.74M	1.08M	-3.88M	-2.91M
	EBIT
12.30M	16.32M	8.67M	-1.93M	-5.64M	-3.84M
	EBITDA
11.08M	15.31M	13.38M	11.86M	6.57M	5.03M
	Net Income Common Stockholders
4.19M	6.67M	6.44M	4.77M	1.75M	1.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.84M	2.44M	18.14M	18.14M	928.00K	973.41K
	Total Assets
94.59M	88.59M	71.05M	71.05M	39.21M	35.58M
	Total Debt
27.28M	24.66M	19.39M	19.39M	21.19M	20.77M
	Net Debt
25.35M	22.23M	1.26M	1.26M	20.27M	19.79M
	Total Liabilities
40.68M	35.79M	34.73M	34.73M	25.84M	23.89M
	Stockholders Equity
53.91M	52.80M	36.31M	36.31M	13.37M	11.69M
Cash Flow		Free Cash Flow
-5.56M	-6.77M	-4.37M	-891.00K	-508.00K	-5.60M
	Operating Cash Flow
8.56M	9.91M	6.96M	7.40M	3.26M	1.90M
	Investing Cash Flow
-20.17M	-22.72M	-11.26M	-8.35M	-2.51M	-6.68M
	Financing Cash Flow
5.87M	15.19M	3.46M	902.00K	-790.00K	4.16M

LGI LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LGI, the sentiment is Positive. The current price of 3 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 2.89, and above the 200-day MA of 2.90, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 94.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LGI.

LGI LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	73 Outperform	AU$90.94B	34.98	30.35%	2.57%	3.04%	3.65%
LGI	70 Outperform	AU$266.43M	44.44	11.32%	0.83%	27.85%	-15.52%
JHX	68 Neutral	$16.99B	26.26	21.82%	―	2.20%	-16.72%
NCK	66 Neutral	AU$1.62B	23.39	29.48%	3.33%	9.36%	-21.69%
Sector *	63 Neutral	$8.39B	10.63	5.35%	4.38%	3.68%	-10.94%

LGI LTD Corporate Events

Soul Patts Increases Stake in LGI Limited

LGI Limited, a company listed on the Australian Securities Exchange (ASX: LGI), has experienced a change in the interests of its substantial holder, Washington H. Soul Pattinson and Company Limited (Soul Patts). The voting power of Soul Patts has increased from 5.03% to 6.20%, reflecting a significant acquisition of ordinary shares in LGI Limited. This change in voting power may impact LGI’s corporate governance and influence future strategic decisions, highlighting Soul Patts’ growing influence within the company.

LGI Limited Announces Change in Substantial Holding

LGI Limited, listed on the ASX, has experienced a change in its substantial holding, with Wilson Asset Management Group’s voting power increasing from 5.06% to 6.52%. This alteration in voting power could impact the company’s decision-making processes and influence its strategic direction, affecting stakeholders by potentially reshaping shareholder dynamics.