LGI (ASX:LGI) Shares Confront Cash Conversion Doubts After Strong Margins

Simply Wall St.08-23

LGI walked into this result priced for perfection, trading on a P/E of 28.7x and sitting at A$2.43 after a flat month and a sharp 90 day slide. The stock has been treated as a high growth clean energy...

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The stock has been treated as a high growth clean energy...</p>\n\n<a href=\"https://simplywall.st/stocks/au/utilities/asx-lgi/lgi-shares/news/lgi-asxlgi-shares-confront-cash-conversion-doubts-after-stro\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>LGI (ASX:LGI) Shares Confront Cash Conversion Doubts After Strong Margins</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLGI (ASX:LGI) Shares Confront Cash Conversion Doubts After Strong Margins\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-23 05:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/utilities/asx-lgi/lgi-shares/news/lgi-asxlgi-shares-confront-cash-conversion-doubts-after-stro><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>LGI walked into this result priced for perfection, trading on a P/E of 28.7x and sitting at A$2.43 after a flat month and a sharp 90 day slide. The stock has been treated as a high growth clean energy...</p>\n\n<a href=\"https://simplywall.st/stocks/au/utilities/asx-lgi/lgi-shares/news/lgi-asxlgi-shares-confront-cash-conversion-doubts-after-stro\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7060","symbol_name":"新能源发电业者","start_time":0,"source_url":"https://simplywall.st/stocks/au/utilities/asx-lgi/lgi-shares/news/lgi-asxlgi-shares-confront-cash-conversion-doubts-after-stro","article_id":"2661207212","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9621063-choice1-main-header/1585186916289"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/utilities/asx-lgi/lgi-shares/news/lgi-asxlgi-shares-confront-cash-conversion-doubts-after-stro","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2661207212","pubTimestamp":1787433681,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"LGI walked into this result priced for perfection, trading on a P/E of 28.7x and sitting at A$2.43 after a flat month and a sharp 90 day slide. The stock has been treated as a high growth clean energy story. The headline from FY26 is simple. Profit is strong on paper, with net income of A$5.689m in the second half and a 20.1% margin over the past year, but the quality of those earnings and the pressure from a stretched valuation now sit front and centre.\nIs LGI fairly priced as a high growth...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7060":"新能源发电业者","LGI.AU":"LGI Ltd","LGI":"LGI全球基金"},"translate_title":"LGI (ASX:LGI) 股票在利润率强劲后面临现金转换疑虑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LGI":1.5,"LGI.AU":1.5},"content_text":"LGI walked into this result priced for perfection, trading on a P/E of 28.7x and sitting at A$2.43 after a flat month and a sharp 90 day slide. The stock has been treated as a high growth clean energy story. The headline from FY26 is simple. Profit is strong on paper, with net income of A$5.689m in the second half and a 20.1% margin over the past year, but the quality of those earnings and the pressure from a stretched valuation now sit front and centre. Is LGI fairly priced as a high growth clean energy stock, or is the A$2.43 share price running ahead of its 28.7x P/E and cash quality story? Compare the headline multiples with the underlying cash flows in our valuation analysis for LGI AdvertisementFY 2026 Earnings Summary  Revenue (FY26 H2 vs FY25 H2): A$23.307 million vs. A$19.864 million (higher period on period) Net Income (Excl. Extra Items, FY26 H2 vs FY25 H2): A$5.689 million vs. A$4.074 million (higher period on period) Basic EPS (FY26 H2 vs FY25 H2): A$0.05486 per share vs. A$0.045974 per share (higher period on period) Net Profit Margin (Last 12 Months vs Prior Year): 20.1% vs. 17.6% (margin higher year on year)  Prefer clear charts instead of another dense block of earnings tables and metrics? See LGI's full financial picture, including how its recent profit performance ties into valuation and cash quality, in our visual company report for LGI. ASX:LGI Trailing 12-Month Earnings & Revenue History as at Aug 2026 LGI results still align with ESG‑infrastructure pitch The latest LGI numbers broadly back the idea of an ESG aligned, infrastructure style business. Revenue, EBITDA and NPAT each moved higher, and the EBITDA margin reached 55%, which supports the view that landfill gas and carbon projects can throw off healthy economics when run efficiently. Operational delivery looks solid, with biogas recovery, MWh generated and ACCU volumes all higher and a broader base of 37 operating sites. A fully franked dividend and zero net debt after the equity raise reinforce the impression of a business with real operating and financial substance. Execution, cash conversion and project timing temper enthusiasm The bear case for LGI finds some support in softer cash conversion and project execution risk. Profit grew faster than cash, which keeps attention on how reliably earnings convert as ACCU and certificate inventories move to revenue. Delays at Mugga Lane and connection constraints for batteries show how reliant the roll out is on third party approvals. Recent electricity price softness also explains management’s focus on hedging and ACCU levers. This is a reminder that power markets and policy exposed revenue streams can become a headwind if conditions weaken further. After dilution over the past year, softer cash conversion and project delays, it is reasonable to ask whether these are isolated issues or hints of deeper structural fragility in LGI. Review the independent risk analysis for LGI which shows 2 important warning signs Stay Ahead With LGI And Simply Wall St If LGI's strong reported margins and valuation pressure have your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch how cash quality develops. Once you hold LGI or other stocks, keep a clear view of what matters with the Portfolio Command Center that cuts through noise and highlights key fundamental changes. For a longer term view, tap into crowd wisdom and sentiment shifts through the Community and see how other investors are reading the same data. By spotting hidden catalysts and risks early, you may improve your chances of staying ahead of the market. Seeking Alternatives Beyond LGI Right Now Fresh ideas move quickly. Some stocks build quiet momentum, others approach a breakout or risk getting caught as sentiment drops. Scan these under the radar picks before the crowd and act now.  Spot potential breakout yield stories by scanning curated high payout opportunities with the 6 dividend fortresses before others start chasing the same income streams. Track where capital is quietly shifting by reviewing the 10 resilient stocks with low risk scores that highlights companies with resilient profiles while they are still under the radar for now. Explore the next infrastructure wave and sort through the 39 power grid technology and infrastructure stocks while market attention is still elsewhere.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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