LGI Ltd

LGI Limited maintains a debt-to-equity ratio of 0.59 and a current ratio of 1.33, indicating moderate leverage and acceptable short-term liquidity [doc:HA-latest]. The company's price-to-book ratio is 6.23, and its price-to-tangible-book ratio is also 6.23, suggesting a premium valuation relative to its book value. The enterprise value to EBITDA ratio is 35.91, and the enterprise value to revenue is 10.68, both of which are elevated compared to typical industry benchmarks [doc:HA-latest]. Profitability metrics show a return on equity of 11.21% and a return on assets of 5.73%, which are below the industry median for renewable energy firms. The company's operating margin is 29.75% (calculated as operating income of 10,968,000 AUD divided by revenue of 36,872,000 AUD), and its net margin is 17.56% (calculated as net income of 6,476,000 AUD divided by revenue of 36,872,000 AUD), both of which are in line with the industry average [doc:HA-latest]. The company's revenue is distributed across three segments: Renewable Energy, Carbon abatement, and Infrastructure construction and management. The Renewable Energy segment includes renewable power stations and the Bunya battery, which contributes to frequency control services. The Carbon abatement segment focuses on ACCUs, while the Infrastructure segment involves landfill infrastructure projects and consulting [doc:HA-latest]. Geographically, the company is concentrated in Australia, with no disclosed international operations. LGI's growth trajectory is mixed. The company reported a net income of 6,476,000 AUD for the latest period, but its free cash flow is negative at -7,816,000 AUD, driven by capital expenditures of -18,553,000 AUD. The company's capital expenditures are significant, indicating ongoing investment in infrastructure and expansion [doc:HA-latest]. Risk factors include a medium liquidity risk, as the company has negative net cash after subtracting total debt. The risk assessment also notes a low dilution risk, with no immediate pressure for share issuance. The company's capital structure includes long-term debt of 33,922,000 AUD, which could increase financial risk if interest rates rise or cash flows decline [doc:HA-latest]. Recent events include analyst price targets ranging from 4.40 to 4.55 AUD, with a mean of 4.50 AUD and a median of 4.51 AUD. Analysts have issued two strong-buy and two buy recommendations, with no hold or sell ratings, indicating a generally positive outlook [doc:].