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Lenovo Group (LNVGY)
:LNVGY
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Lenovo Group
(OTC:LNVGY)
Rating:78Outperform
Price Target:
$28.00
▲(9.89%Upside)
Lenovo Group (LNVGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.96B
Dividend Yield3.08%
Average Volume (3M)1.95K
Price to Earnings (P/E)11.4
Beta (1Y)0.60
Revenue Growth21.48%
EPS Growth34.77%
CountryUS
Employees69,500
SectorTechnology
Sector Strength94
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.15
Shares Outstanding620,233,000
10 Day Avg. Volume2,384
30 Day Avg. Volume1,945
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)2.95
Price to Sales (P/S)0.00
P/FCF Ratio36.83
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit1.53
Enterprise Value/Ebitda1.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Lenovo Group Business Overview & Revenue Model
Company DescriptionLenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. It also provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. In addition, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Further, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Additionally, the company is involved in motherboard design and system, full-rack assembly across server, storage, and other products; and provides device-, infrastructure-, and software-as-a-service. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is based in Quarry Bay, Hong Kong.
How the Company Makes MoneyLenovo generates revenue through the sale of its diverse portfolio of products, primarily consisting of personal computers and smart devices. The company's revenue model is heavily reliant on its PC and Smart Devices (PCSD) segment, which includes laptops, desktops, tablets, and other smart devices. This segment is the largest contributor to Lenovo's revenue, driven by strong demand for its ThinkPad, IdeaPad, and Yoga series laptops. Additionally, Lenovo's Data Center Group (DCG) contributes to the revenue by providing infrastructure solutions, including servers, storage, and networking products. The Mobile Business Group (MBG) is another revenue stream, offering smartphones and related services. Strategic partnerships and acquisitions, such as those with Motorola Mobility and IBM's x86 server business, have expanded Lenovo's product offerings and market reach, further bolstering its revenue.
Lenovo Group Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: -1.39%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance with significant growth in revenue and profits across all business segments. The company navigated well through geopolitical challenges and tariff impacts, showcasing resilience and strategic foresight. However, the sudden tariff imposition and increased expenses due to financial derivatives posed challenges.Q4-2025 Updates
Positive Updates
Record Revenue and Profit Growth
Group revenue grew more than 21% year-on-year to USD 69 billion, the second highest ever. Non-HKFRS net profit surged by 36% year-on-year to USD 1.4 billion.
Strong Performance in Intelligent Devices Group (IDG)
IDG achieved 13% year-on-year revenue growth with an operating margin of 7.2%. PC market leadership was expanded, and smartphone revenue saw a hyper growth of 27% year-on-year.
Infrastructure Solutions Group (ISG) Achievements
ISG concluded a year of hyper growth with record revenue of USD 15 billion, representing a 63% year-on-year increase, and achieved profitability for two consecutive quarters.
Solutions & Services Group (SSG) Performance
SSG achieved record revenues and profits for a fourth consecutive year with revenue increasing by 13% year-on-year to USD 8.5 billion and a record operating margin of 22.7%.
AI Innovations and Strategic Positioning
Significant progress in personal AI and enterprise AI, with the launch of Lenovo's first personal and enterprise AI super agents.
Negative Updates
Impact of Tariffs
Sudden implementation of a 25% tariff in March had a significant impact on performance, costing approximately USD 50 million to USD 60 million in the last quarter.
Increased Operating Expenses Due to Warrants
Operating expenses included a fair value loss on derivative financial liabilities relating to the warrants, amounting to approximately USD 118 million for the quarter.
Company Guidance
In the recent Lenovo earnings call, significant financial and operational achievements were highlighted, showcasing robust growth across the company's business units. The group reported a 21% year-on-year increase in revenue, reaching USD 69 billion, with a notable 36% increase in non-HKFRS net income to USD 1.4 billion. The Intelligent Devices Group (IDG) saw a 13% revenue growth and maintained a 7.2% operating margin, while the Infrastructure Solutions Group (ISG) achieved a record USD 15 billion in revenue, marking a 63% year-on-year growth, with profitability in the last two quarters. The Solutions and Services Group (SSG) recorded a 13% revenue increase, with a 21% operating margin. Lenovo's strategic focus on hybrid AI, the expansion of its global footprint, and significant investments in R&D, totaling USD 2.3 billion, underpin its ability to leverage AI-driven demand and enhance market competitiveness. The company also highlighted its adaptive manufacturing capabilities, which mitigate geopolitical risks like tariffs, and its initiatives in the Middle East, strengthened by strategic partnerships.Lenovo Group Financial Statement Overview
Summary
Lenovo Group shows strong income statement performance with positive revenue and profit growth. The balance sheet is stable but requires attention to debt management. Cash flow highlights some liquidity challenges.Income Statement
Lenovo Group shows a strong income statement performance. The company has demonstrated positive revenue growth over the years, with a significant increase from 2024 to 2025. The gross profit margin remains robust, indicating efficient cost management. However, the net profit margin is relatively moderate, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.78
Positive
Balance Sheet
Lenovo's balance sheet reflects a balanced financial position with a manageable debt-to-equity ratio. The company's total assets have grown steadily, and stockholder's equity has increased, contributing to a moderate equity ratio. However, the total debt level is relatively high, which could pose a risk in economic downturns. Overall, the company maintains a stable financial position, but careful monitoring of debt levels is advisable.70
Positive
Cash Flow
The cash flow statement reveals mixed results for Lenovo. The operating cash flow has seen fluctuations, with a notable decrease in 2025. The free cash flow has been inconsistent, highlighting potential challenges in maintaining liquidity. The operating cash flow to net income ratio is healthy, suggesting good cash generation from operations. However, negative free cash flow in the latest period indicates pressure on cash reserves, which may need addressing.65
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 69.08B | 56.86B | 61.95B | 71.62B | 60.74B |
| Gross Profit | 11.10B | 9.80B | 10.50B | 12.05B | 9.77B |
| EBITDA | 3.67B | 3.56B | 4.15B | 4.38B | 3.25B |
| Net Income | 1.38B | 1.01B | 1.61B | 2.03B | 1.21B |
Balance Sheet | |||||
| Total Assets | 44.23B | 38.75B | 38.92B | 44.51B | 37.99B |
| Cash, Cash Equivalents and Short-Term Investments | 4.76B | 3.57B | 4.32B | 3.96B | 3.13B |
| Total Debt | 5.73B | 3.96B | 4.36B | 5.93B | 4.42B |
| Total Liabilities | 37.57B | 32.67B | 32.87B | 39.12B | 34.38B |
| Stockholders Equity | 6.07B | 5.58B | 5.59B | 4.99B | 3.56B |
Cash Flow | |||||
| Free Cash Flow | -51.33M | 725.09M | 1.22B | 2.79B | 2.81B |
| Operating Cash Flow | 1.10B | 2.01B | 2.80B | 4.08B | 3.65B |
| Investing Cash Flow | -1.06B | -1.28B | -1.92B | -1.50B | -975.90M |
| Financing Cash Flow | 1.19B | -1.34B | -413.78M | -1.76B | -3.23B |
Lenovo Group Technical Analysis
Positive
25.48
Price Trends
24.12
Positive
25.45
Positive
25.77
Negative
Market Momentum
0.41
Negative
64.08
Neutral
93.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNVGY, the sentiment is Positive. The current price of 25.48 is above the 20-day moving average (MA) of 24.20, above the 50-day MA of 24.12, and below the 200-day MA of 25.77, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 93.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNVGY.
Lenovo Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.96B | 11.39 | 23.76% | 3.08% | 21.48% | 34.77% | |
74 Outperform | $20.73B | 18.23 | 108.51% | 2.01% | 5.02% | 22.19% | |
70 Outperform | $85.32B | 20.04 | -179.12% | 1.67% | 7.68% | 27.73% | |
68 Neutral | ¥228.96B | 14.53 | 7.50% | 2.69% | 9.28% | 6.70% | |
63 Neutral | $23.35B | 12.73 | 28.45% | 0.15% | 21.22% | ― | |
61 Neutral | $23.03B | 9.45 | 84.33% | 4.72% | 2.08% | -12.41% | |
61 Neutral | $31.63B | 21.54 | -109.27% | 1.93% | 36.29% | ― |
* Technology Sector Average
Performance Comparison
LNVGY
Lenovo Group
25.48
-0.73
-2.79%
HPQ
HP
24.56
-11.42
-31.74%
NTAP
NetApp
104.16
-19.44
-15.73%
STX
Seagate Tech
147.12
46.46
46.16%
WDC
Western Digital
66.53
13.55
25.58%
DELL
Dell Technologies
123.57
0.39
0.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.