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LGI LTD (AU:LGI)
ASX:LGI
Australian Market
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LGI LTD (LGI) AI Stock Analysis

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AU:LGI

LGI LTD

(Sydney:LGI)

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Neutral 62 (OpenAI - Gpt-5.6Sol)
Rating:62Neutral
Price Target:
AU$2.50
▲(3.31% Upside)
Action:Reiterated
Date:08/22/26
The score is primarily supported by improved financial strength (very low leverage) and solid FY2026 profitability with strong revenue growth. Offsetting this are persistent negative free cash flow and weak technicals (price below key longer-term moving averages with negative MACD), with valuation also relatively high versus a modest dividend yield.
Positive Factors
Strong revenue growth and profitability
FY2026 revenue reached ~40.5M with ~35% gross margin and ~22% net margin. Sustained profitability alongside strong expansion supports reinvestment capacity and indicates the business is converting growth into earnings.
Negative Factors
Persistent negative free cash flow
Persistent free cash outflows mean the business is not yet self-funding after investment spending. Continued cash burn could increase reliance on existing balance-sheet capacity or external funding, limiting financial flexibility despite low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and profitability
FY2026 revenue reached ~40.5M with ~35% gross margin and ~22% net margin. Sustained profitability alongside strong expansion supports reinvestment capacity and indicates the business is converting growth into earnings.
Read all positive factors

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

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
Strong FY2026 revenue growth with healthy profitability (gross margin ~35%, net margin ~22%) and a much-improved balance sheet (very low leverage with debt-to-equity ~0.04). The main weakness is cash generation: despite positive operating cash flow (~8.5M), free cash flow remains persistently negative and worsened in FY2026 (~-10.5M), indicating ongoing funding reliance after investment spend.
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
52
Neutral
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue40.51M36.73M33.25M32.30M15.82M
Gross Profit14.12M27.34M24.25M22.74M1.08M
EBITDA19.00M17.32M15.31M13.38M11.86M
Net Income8.77M6.48M6.67M6.44M4.77M
Balance Sheet
Total Assets137.00M113.07M88.59M71.05M71.05M
Cash, Cash Equivalents and Short-Term Investments8.11M3.36M2.44M18.14M18.14M
Total Debt4.74M33.92M24.66M19.39M19.39M
Total Liabilities18.04M55.30M35.79M34.73M34.73M
Stockholders Equity118.96M57.77M52.80M36.31M36.31M
Cash Flow
Free Cash Flow-10.47M-6.23M-6.77M-4.37M-891.00K
Operating Cash Flow8.45M12.32M9.91M6.96M7.40M
Investing Cash Flow-25.01M-17.65M-22.72M-11.26M-8.35M
Financing Cash Flow21.31M6.25M15.19M3.46M902.00K

LGI LTD Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.42
Price Trends
50DMA
2.40
Negative
100DMA
2.89
Negative
200DMA
3.35
Negative
Market Momentum
MACD
-0.04
Negative
RSI
45.81
Neutral
STOCH
12.12
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 2.42 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.40, and below the 200-day MA of 3.35, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 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
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
62
Neutral
AU$230.67M22.977.52%1.14%8.20%20.55%
58
Neutral
AU$21.20M11.7112.83%57.73%30.59%
50
Neutral
AU$118.69M-8.60-718.72%27.74%49.26%
47
Neutral
AU$85.46M-28.57-14.42%42.98%-9.38%
45
Neutral
AU$45.01M-4.01-138.53%-29.75%
42
Neutral
AU$26.92M-6.39-14.97%16.28%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LGI
LGI LTD
2.23
-1.39
-38.47%
AU:CCE
Carnegie Clean Energy Ltd
0.20
0.14
244.83%
AU:JNS
ReNu Energy Limited
0.65
0.51
348.28%
AU:14D
1414 Degrees Ltd.
0.06
0.04
200.00%
AU:VPR
Volt Power Group Ltd
0.13
>-0.01
-3.70%
AU:BTE
Botala Energy Ltd.
0.07
<0.01
15.00%

LGI LTD Corporate Events

LGI Limited Files Updated ASX Corporate Governance Statement
Aug 20, 2026
LGI Limited, an ASX-listed Australian company, details its corporate governance framework and board charter on its investor website, outlining the division of responsibilities between board and management and the protocols for appointing directors...
LGI boosts profits and expands landfill clean-energy portfolio in FY26
Aug 20, 2026
LGI Ltd reported a strong FY26, with net revenue rising 17% to $39.8 million and underlying EBITDA up 26% to $21.8 million, supported by higher biogas flows, a 29% uplift in renewable energy generation and increased creation of Australian Carbon C...
LGI Limited Posts Strong FY26 Results and Lifts Asset Backing
Aug 20, 2026
LGI Limited has reported a strong financial performance for the year ended 30 June 2026, highlighting a 17.7% increase in revenue from ordinary activities to $43.3 million. The company also emphasises its use of both statutory and underlying EBITD...
LGI Sets FY26 Results Date and AGM Timetable
Jul 24, 2026
LGI Ltd will release its full&#8209;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&#8209;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.Date of analysis: Aug 22, 2026