LGI (ASX:LGI) ROCE %: 9.72% (As of Dec. 2025)


ASX:LGI LGI Ltd ASX:LGI
68 GF Score
Price A$2.70
GF Value A$3.73
Valuation Modestly Undervalued
! 2 Warning Signs
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What is LGI ROCE %?

LGI ASX:LGI -9.70% 68 ROCE % is 9.72% as of Dec. 2025. GuruFocus rates ASX:LGI with a GF Score™ of 68/100 and a GF Value™ of A$3.73 (Modestly Undervalued). The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. LGI's annualized ROCE % for the quarter that ended in Dec. 2025 was 9.72%.

LGI  (ASX:LGI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

LGI ROCE % Related Terms

LGI ROCE % Historical Data

* Premium members only.

The historical data trend for LGI's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

LGI ROCE % Chart

LGI Annual Data
Trend Jun22 Jun23 Jun24 Jun25
ROCE %
0.00 15.25 14.16 12.26

LGI Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial 13.97 13.99 10.30 14.57 9.72
ASX:LGI
68GF Score
LGI Ltd ASX:LGI
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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LGI ROCE % Calculation

LGI's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=10.842/( ( (88.591 - 7.22) + (113.069 - 17.521) )/ 2 )
=10.842/( (81.371+95.548)/ 2 )
=10.842/88.4595
=12.26 %

LGI's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=10.642/( ( (113.069 - 17.521) + (129.931 - 6.509) )/ 2 )
=10.642/( ( 95.548 + 123.422 )/ 2 )
=10.642/109.485
=9.72 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 9.72% mean?
LGI (ASX:LGI) has a ROCE % of 9.72% as of Dec. 2025.
Is LGI's ROCE % too high?
LGI's current ROCE % is 9.72%. The Utilities - Independent Power Producers industry median ROCE % is 4.79. LGI's value of 9.72% is 102.9% above this industry median. Overall, LGI has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGI's ROCE % compare to competitors?
LGI's ROCE % of 9.72% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROCE % is 4.79. LGI's value of 9.72% is 102.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Independent Power Producers company?
The median ROCE % among Utilities - Independent Power Producers companies is 4.79, based on 437 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LGI's current ROCE % of 9.72% is 102.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Independent Power Producers industry, the median ROCE % is 4.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI's current ROCE % is 9.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGI stock overvalued right now?
Based on GuruFocus' analysis, LGI (ASX:LGI) is currently considered Modestly Undervalued. The stock's GF Value™ is A$3.73, compared to a current price of A$2.70 — trading 27.6% below its estimated fair value. The current ROCE % is 9.72% and 102.9% above the Utilities - Independent Power Producers industry median of 4.79. LGI's overall GF Score™ is 68/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For LGI (ASX:LGI), the current ROCE % is 9.72% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is LGI (ASX:LGI) Overvalued in 2026?

Based on GuruFocus' analysis, LGI stock appears to be undervalued. The current stock price of A$2.70 is trading 27.6% below its estimated GF Value™ of A$3.73. GuruFocus considers LGI to be Modestly Undervalued.

Key valuation signals for ASX:LGI:

  • ROCE %: 9.72%
  • GF Value™: A$3.73 vs. price of A$2.70 (27.6% below fair value)
  • GF Score™: 68/100 with 2 warning signs
  • Industry Position: 102.9% above the Utilities - Independent Power Producers median

No single metric tells the full story. See the ASX:LGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

LGI Business Description

Address 57 Harvey Street North, Eagle Farm, Brisbane, QLD, AUS, 4009
LGI Ltd is engaged in the recovery of biogas from landfills, and the subsequent conversion into renewable electricity and saleable environmental products.
68GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$2.70
Price
A$3.73
GF Value