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LGI Limited
Utilities · Utilities - Renewable
Updated just now
$2.21
MARKET CAP
$228.60M
P/E RATIO
30.3
DIV. YIELD
1.1%
FRANKING
100%
LGI has red flags on value — see the full breakdown
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LGI Limited provides carbon abatement and renewable energy solutions with biogas from landfill in Australia. It operates through three segments: Renewable Energy, Carbon Abatement, and Infrastructure Construction and Site Management.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
Business quality and balance-sheet durability.
How much the company owes vs. what it owns
Excellent. Very low debt (0.04) means strong financial flexibility and minimal bankruptcy risk.
Current Snapshot
Current D/E
0.04x
Industry Limit
1.50x
Headroom
+1.46x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 0.04, meaning it carries 4 cents of debt for every $1 of equity. The utilities & energy infrastructure limit is 1.50, leaving 1.46 of headroom.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
Very low debt means this company has maximum flexibility. They won't need to cut dividends to service loans during downturns - your income stream is protected by a fortress balance sheet.
Sources
Profit generated per $1 of shareholder investment
Real cash left after running the business
Negative free cash flow means the company is consuming cash. May need to raise debt or equity to fund operations.
Current Snapshot
Current FCF
$-17M
Pass Rule
> $0
Status
Negative
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $-17M in free cash flow — cash left after operating costs and capital expenditure. Negative FCF means the company is consuming more cash than it generates.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Negative cash flow means dividends may require borrowing - an unsustainable situation. The company is spending more cash than it generates, which can't continue indefinitely.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Percentage of revenue that becomes profit after all expenses
Is the business growing — and is debt being managed responsibly?
Revenue growing while debt is declining — dividends are likely funded by business performance, not borrowing. This is the strongest signal of dividend sustainability.
Current Snapshot
Revenue Change
+34.0%
Debt Change
-72.6%
Trend State
Improving
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +34.0% across the displayed period, while debt changed by -72.6%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue growing while debt is declining — dividends are likely funded by business performance, not borrowing. This is the strongest signal of dividend sustainability.
Sources
Annual dividends as percentage of stock price
LGI Limited provides carbon abatement and renewable energy solutions with biogas from landfill in Australia. It operates through three segments: Renewable Energy, Carbon Abatement, and Infrastructure Construction and Site Management. The Renewable Energy segment generates electricity and Large-Scale Generation Certificates (LGCs) from landfill biogas and enhances electricity sales with battery storage and hedging activities. The Carbon Abatement segment creates and sells Australian Carbon Credit Units (ACCUs) through biogas flaring and carbon projects.
The Infrastructure Construction and Site Management segment installs, operates, and maintains biogas extraction infrastructure and flaring systems for landfill owners. The company also sells renewable electricity and large-scale generation certificates. LGI Limited was incorporated in 2009 and is based in Eagle Farm, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
A handful of professional investors are watching
Shares freely traded on the ASX by individual investors like you
The people running this company own a large chunk of it (43.4%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Current Snapshot
Insider %
43.4%
Institutional %
28.0%
Float %
28.6%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 43.4% and institutions own 28.0%, public float is 28.6%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
The people running this company own a large chunk of it (43.4%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 19 Nov 2025 | Cheadle (Abigail Jane Mackenzie) Director (Non-Executive) | Other at price 2.49 per share. | 8K | $19K |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Both value and dividend analyses may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
8.8% average is below the 10% threshold. This suggests the business may lack a durable competitive advantage.
Current Snapshot
10Y Avg
8.8%
Threshold
10.0%
Worst Year
0.0%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 8.8%, meaning each $1 of shareholder equity generates $0.09 in annual profit. The threshold is 10%, and the worst single year was 0.0%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 8.8%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
3.3% earnings yield is below the 6.0% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
3.3%
Required Yield
6.0%
Spread
-2.7pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.07 and a share price of $2.21, earnings yield is 3.3%. The required yield for this industry is 6.0% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
Strong 20.3% net margin — well above the 10% threshold for this sector.
Current Snapshot
Current Margin
20.3%
Threshold
10.0%
Relative Position
+10.3%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 20.3% — it keeps 20 cents of every revenue dollar as profit after all expenses. The utilities & energy infrastructure threshold is 10%, putting it 10.3% above the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
High margins provide a comfortable buffer against rising costs or temporary revenue drops. Dividends are well-supported by consistent profitability.
Sources
How efficiently the company turns money into profit
9.8% ROIC clears the 8.5% threshold, but the spread over the 6.5% cost of capital is narrow. A small decline could eliminate the value-creation margin.
Current Snapshot
5Y Avg
9.8%
Threshold
8.5%
WACC Delta
+3.3pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 9.8%, with a cost of capital (WACC) of 6.5%. The +3.3pp spread above WACC suggests it creates value on each dollar invested.
How to Interpret
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Returns exceed capital costs but the margin is thin. Monitor for consistency — if ROIC dips or borrowing costs rise, this company could shift from value creator to value destroyer.
Sources
Consistency of profits over time
3/3 positive EPS years. Limited data - full evaluation requires 8+ years. Monitor closely for consistency.
Current Snapshot
Positive Years
3/3
Allowed Losses
0 (limited)
EPS CAGR
0.0%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 3 of the last 3 years. With only 3 years of data, every year must be positive. EPS growth rate (CAGR) is 0.0%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
So far so good, but limited history means we haven't seen how this company handles a full economic cycle. Monitor closely for continued consistency.
Sources
How much earnings are consumed by capital expenditure
CapEx consumes 252% of cumulative earnings — above the 100% threshold. Expected for this capital-intensive sector.
Current Snapshot
10Y CapEx Intensity
252%
Threshold
100%
Buffer
-152%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 252% of this company's cumulative earnings were consumed by capital expenditure. The utilities & energy infrastructure threshold is 100%, leaving a buffer of -152% (over threshold).
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
High capital intensity means most earnings go back into maintaining the business rather than rewarding shareholders. This is typical for this sector but limits dividend growth potential.
Sources
Insufficient dividend history. Barsi methodology requires 6 years of data to calculate average yield.
Current Snapshot
6Y Avg Yield
N/A
6% Requirement
6.0%
Gross Yield
N/A
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
If annual dividends are $0.60 and the share price is $10, dividend yield is 6.0%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Without 6 years of dividend history, we can't assess whether the yield is sustainable or a one-time spike. More data is needed to evaluate income potential.
Sources
Track record of consistent dividend payments
Insufficient dividend history for estimation
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 18 Mar 2026Interim | 15 Apr 2026 | $0.01 | 0% | $0.01 | $0.00 |
| 10 Sept 2025Final | 8 Oct 2025 | $0.01 | 0% | $0.01 | $0.00 |
| 19 Mar 2025Interim | 16 Apr 2025 | $0.01 | 0% | $0.01 | $0.00 |
| 11 Sept 2024Final | 9 Oct 2024 | $0.01 | 0% | $0.01 | $0.00 |
| 19 Mar 2024Interim | 16 Apr 2024 | $0.01 | 0% | $0.01 | $0.00 |
| 11 Sept 2023Final | 9 Oct 2023 | $0.01 | 0% | $0.01 | $0.00 |
| 24 Mar 2023Interim | 21 Apr 2023 | $0.01 | 0% | $0.01 | $0.00 |
Only 4 years of dividend history available. Barsi methodology requires 6+ years to evaluate consistency.
Current Snapshot
History
4yr
Predictability
N/A
Payout Health
Sustainable
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 4 years of dividend history (2023–2026). No suspensions detected — 4 consecutive years of payments. Predictability: N/A. Payout health: Sustainable. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
Without 6 years of history, we can't verify this company maintained dividends through economic cycles. Longer track records provide confidence your income will continue.
Sources
Industry category of the business
Sanitation is an essential service sector with stable, predictable cash flows - ideal for dividend investing.
Current Snapshot
Industry
Utilities - Renewable
BESST Match
Yes
Score Impact
+3 points
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Utilities - Renewable (Utilities sector). It matches the Sanitation category — an essential service sector with stable demand, earning a +3 point scoring advantage.
How to Interpret
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Essential services maintain demand regardless of economic conditions - people always need electricity, banking, and telecommunications. Your income is protected by inelastic demand.
Sources
How much of a company's earnings are paid out as dividends
A low 29% payout means the company keeps most earnings for growth. This can be a good sign — but only if the company creates more value with the money it retains than it would by paying it out to shareholders.
Current Snapshot
Latest Ratio
28.6%
Healthy Range
30%-75%
Zone
Low
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.03 dividend / $0.07 EPS equals 34.2% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A low 29% payout means the company keeps most earnings for growth. This can be a good sign — but only if the company creates more value with the money it retains than it would by paying it out to shareholders.
Sources
Meridian Energy Limited
Contact Energy Limited
APA Group
Origin Energy Limited
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