Lenovo Group (0992) AI Stock Analysis

• Market Cap: $140.67B
• Dividend Yield: 4.01%
• Average Volume (3M): 77.37M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.10
• Revenue Growth: 19.18%
• EPS Growth: 36.38%
• Country: HK
• Employees: 69,500
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.19
• Shares Outstanding: 12,404,659,000
• 10 Day Avg. Volume: 94,859,755
• 30 Day Avg. Volume: 77,367,667
• PEG Ratio: 0.45
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -321.47
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 12.68
• Enterprise Value/Ebitda: 40.09
• 1Y Price Target: $13.46
• Price Target Upside: 38.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$10.50 ▲(8.02% Upside)

Lenovo's strong revenue growth and strategic investments in AI and R&D are significant positives, reflected in a high earnings call score. However, technical indicators show bearish momentum, and financial performance is hindered by liquidity challenges, resulting in a moderate overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates Lenovo's effective market strategies and product demand, supporting long-term business expansion and competitiveness.

AI and R&D Investments

Continued investment in AI and R&D positions Lenovo as a leader in tech innovation, ensuring future growth and market relevance.

Market Position

Dominant market share in PCs strengthens Lenovo's brand and competitive edge, providing a solid foundation for sustained profitability.

Negative Factors

Gross Margin Decline

Declining gross margins could pressure profitability, challenging Lenovo's ability to maintain cost advantages and financial health.

Operating Loss in ISG

Operating losses in strategic segments may strain resources and delay profitability, impacting long-term financial stability.

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash conversion, potentially limiting Lenovo's ability to fund growth and manage debt.

Lenovo Group Business Overview & Revenue Model

Company Description

Lenovo Group Limited (stock code: 0992) is a multinational technology company based in China, renowned for its innovative products and solutions in the information technology sector. The company operates primarily in three main segments: PC and Smart Devices, Mobile Business Group, and Data Center Group. Lenovo is best known for its personal computers, particularly the ThinkPad and IdeaPad series, as well as tablets, smartphones, workstations, and servers. Additionally, Lenovo provides a range of services including cloud computing and enterprise solutions, positioning itself as a leader in the global technology market.

How the Company Makes Money

Lenovo generates revenue through several key streams: the sale of hardware products, including personal computers, tablets, smartphones, and servers, which account for a significant portion of its income. The company also earns revenue from its Data Center Group, which offers enterprise solutions, cloud services, and infrastructure. Additionally, Lenovo has established partnerships with various technology firms, enhancing its product offerings and market reach. The firm benefits from a continuous demand for its devices in both consumer and enterprise segments, along with a growing focus on services and solutions that complement its hardware sales, thereby diversifying its revenue sources.

Lenovo Group Financial Statement Overview

Summary

Lenovo Group shows strong revenue growth and improved profitability, but faces challenges with low net profit margins and negative free cash flow, indicating potential liquidity issues. The balance sheet is moderately leveraged with effective equity use, but the low equity ratio poses financial stability risks.

Income Statement

Lenovo Group has demonstrated strong revenue growth over the past year, with a notable increase from $56.86 billion to $69.08 billion, indicating a growth rate of 21.30%. The gross profit margin improved to 16.06%, showcasing efficient cost management. The net profit margin rose to 2.00% from the previous period, reflecting improved profitability. However, despite the growth, net income margins remain relatively low, which could be a concern in sustaining long-term profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 0.94, suggesting a balanced capital structure with moderate leverage. Return on equity (ROE) improved to 22.81%, indicating effective utilization of shareholder funds. The equity ratio is 13.72%, showing a reasonable level of equity financing. However, the relatively low equity ratio might indicate vulnerability to financial instability in high leverage scenarios.

Cash Flow

Operating cash flow decreased significantly, resulting in a negative free cash flow of -$51.33 million, reflecting challenges in converting revenue into cash. The operating cash flow to net income ratio is 0.79, suggesting limited cash efficiency. The free cash flow to net income ratio is negative, indicating potential liquidity issues if this trend persists. Despite these challenges, financing activities increased, reflecting efforts to maintain liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	75.07B	69.08B	56.86B	61.95B	71.62B	60.74B
Gross Profit	11.49B	11.10B	9.80B	10.50B	12.05B	9.77B
EBITDA	3.64B	3.67B	3.56B	4.14B	4.35B	3.10B
Net Income	1.63B	1.38B	1.01B	1.61B	2.03B	1.21B
Balance Sheet
Total Assets	49.83B	44.22B	38.75B	38.92B	44.51B	37.99B
Cash, Cash Equivalents and Short-Term Investments	5.24B	4.82B	3.57B	4.32B	4.06B	3.08B
Total Debt	4.84B	5.73B	3.96B	4.36B	3.83B	5.35B
Total Liabilities	42.34B	37.46B	32.67B	32.87B	39.12B	34.38B
Stockholders Equity	6.29B	6.07B	5.58B	5.59B	4.44B	3.56B
Cash Flow
Free Cash Flow	-1.01B	-51.33M	725.09M	1.22B	2.79B	2.81B
Operating Cash Flow	-648.41M	1.10B	2.01B	2.80B	4.08B	3.65B
Investing Cash Flow	-531.58M	-1.06B	-1.28B	-1.92B	-1.50B	-975.90M
Financing Cash Flow	1.86B	1.19B	-1.34B	-413.78M	-1.76B	-3.23B

Lenovo Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0992, the sentiment is Negative. The current price of 9.72 is below the 20-day moving average (MA) of 9.81, below the 50-day MA of 10.75, and below the 200-day MA of 10.20, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0992.

Lenovo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0992	70 Outperform	$140.67B	10.85	26.43%	4.01%	19.18%	36.38%
1263	68 Neutral	$2.30B	7.21	10.76%	7.46%	15.67%	35.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6939	57 Neutral	HK$269.75M	-8.60	-8.35%	2.73%	2.22%	-434.25%
3336	55 Neutral	€1.55B	-2.86	-11.23%	―	-11.28%	-122.85%
2436	41 Neutral	HK$1.43B	―	-1.60%	―	32.83%	90.24%
3638	40 Underperform	HK$464.71M	-13.36	-32.47%	―	-52.55%	-262.35%

Lenovo Group Corporate Events

Lenovo Reports Record Revenue and Profit Growth in FY2025/26 Interim Results

Lenovo Group Limited announced record financial results for the first half of FY2025/26, with revenue reaching US$39 billion, an 18% increase year-on-year, and profit attributable to equity holders rising by 40% to US$846 million. The company’s growth was driven by a surge in AI-related revenues, which accounted for 29% of total revenue, and strong performance across its business groups, including a 30% increase in ISG revenue. Lenovo’s strategic focus on AI and innovation, along with effective cost management and supply chain resilience, has strengthened its market leadership and operational leverage, despite geopolitical uncertainties.

Lenovo Announces Upcoming Board Meeting to Review Financial Results

Lenovo Group Limited has announced a board meeting scheduled for November 19, 2025, in the United States to review and potentially approve the unaudited financial results for the six months ending September 30, 2025. The results will be published on November 20, 2025, highlighting the company’s ongoing financial performance and strategic decisions, which may influence its market positioning and stakeholder interests.