LGI Limited
LGI Limited Fundamental Analysis
LGI Limited (LGI.AX) shows moderate financial fundamentals with a PE ratio of 44.38, profit margin of 47.32%, and ROE of 8.32%. The company generates $0.0B in annual revenue with strong year-over-year growth of 10.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LGI.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakLGI.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakLGI.AX trades at a premium to fair value.
Growth Score
ModerateLGI.AX shows steady but slowing expansion.
Financial Health Score
ExcellentLGI.AX maintains a strong and stable balance sheet.
Profitability Score
WeakLGI.AX struggles to sustain strong margins.
Key Financial Metrics
Is LGI.AX Expensive or Cheap?
P/E Ratio
LGI.AX trades at 44.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LGI.AX's PEG of 5.39 indicates potential overvaluation.
Price to Book
The market values LGI Limited at 2.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 53.04 times EBITDA. This signals the market has high growth expectations.
How Well Does LGI.AX Make Money?
Net Profit Margin
For every $100 in sales, LGI Limited keeps $47.32 as profit after all expenses.
Operating Margin
Core operations generate -86.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.32 in profit for every $100 of shareholder equity.
ROA
LGI Limited generates $5.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LGI Limited generates strong operating cash flow of $10.36M, reflecting robust business health.
Free Cash Flow
LGI Limited generates weak or negative free cash flow of $-8.02M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.09 in free cash annually.
FCF Yield
LGI.AX converts -2.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.11
vs 25 benchmark
How LGI.AX Stacks Against Its Sector Peers
| Metric | LGI.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.38 | 20.28 | Worse (Expensive) |
| ROE | 8.32% | 920.00% | Weak |
| Net Margin | 47.32% | 737.00% | Weak |
| Debt/Equity | 0.07 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 5.51 | 1.44 | Strong Liquidity |
| ROA | 5.51% | -6170.00% (disorted) | Weak |
LGI.AX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LGI Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
775.92%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
434.13%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
546.04%
Industry Style: Defensive, Dividend, Income
High Growth