Lenovo Group (LNVGY) AI Stock Analysis

• Market Cap: $18.39B
• Dividend Yield: 3.26%
• Average Volume (3M): 1.92K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.48
• Revenue Growth: 21.95%
• EPS Growth: 50.98%
• Country: US
• Employees: 69,500
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.73
• Shares Outstanding: 620,233,000
• 10 Day Avg. Volume: 2,026
• 30 Day Avg. Volume: 1,923
• PEG Ratio: 0.39
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -322.05
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 5.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $32.00 ▲(11.30% Upside)

Lenovo Group's strong earnings call performance and positive technical indicators are the most significant factors driving the score. The company's stable financial performance and reasonable valuation further support its attractiveness. However, challenges in operational efficiency and external risks like tariff volatility slightly temper the overall outlook.

Lenovo Group Business Overview & Revenue Model

Company Description

Lenovo Group Limited is a multinational technology company based in China, primarily known for designing, manufacturing, and selling a wide range of computing products and solutions. The company operates through several business segments, including Intelligent Devices Group (IDG), which encompasses PCs, tablets, and smartphones; Data Center Group (DCG), focusing on servers and storage solutions; and Software and Services. Lenovo is recognized for its innovative products such as the ThinkPad laptops and Legion gaming PCs, catering to both consumer and enterprise markets.

How the Company Makes Money

Lenovo generates revenue through multiple streams, primarily by selling hardware products, including personal computers, tablets, smartphones, and servers. The Intelligent Devices Group (IDG) is the largest contributor to its revenue, driven by sales of PCs and associated peripherals. Additionally, the Data Center Group (DCG) contributes significantly by providing enterprise solutions, including storage, networking, and cloud services. Lenovo also offers value-added services such as software solutions, support, and warranty services, which enhance its revenue model. Strategic partnerships with major companies like Intel and Microsoft enable Lenovo to integrate advanced technologies into its products, fostering innovation and driving sales. Furthermore, the growing demand for remote work and digital transformation solutions has positively impacted its earnings, making Lenovo a key player in the global technology landscape.

Lenovo Group Financial Statement Overview

Summary

Lenovo Group shows stable financial performance with consistent revenue growth and strong return on equity. The balance sheet is moderately strong with a balanced debt-to-equity ratio. However, operational efficiency and cash conversion need improvement despite significant free cash flow growth.

Income Statement

Lenovo Group's income statement shows a solid performance with a consistent revenue growth rate of 4.86% in the TTM. The gross profit margin is stable at 15.81%, and the net profit margin is 2.00%, indicating moderate profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.04, indicating a balanced approach to leveraging. The return on equity is strong at 25.66%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 99.85% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.04, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is healthy at 42.63%, reflecting good cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.44B	69.08B	56.86B	61.95B	71.62B	60.74B
Gross Profit	11.16B	11.10B	9.80B	10.50B	12.05B	9.77B
EBITDA	3.38B	3.67B	3.56B	4.15B	4.38B	3.25B
Net Income	1.65B	1.38B	1.01B	1.61B	2.03B	1.21B
Balance Sheet
Total Assets	46.32B	44.23B	38.75B	38.92B	44.51B	37.99B
Cash, Cash Equivalents and Short-Term Investments	4.59B	4.76B	3.57B	4.32B	3.96B	3.13B
Total Debt	4.82B	5.73B	3.96B	4.36B	5.93B	4.42B
Total Liabilities	38.77B	37.57B	32.67B	32.87B	39.12B	34.38B
Stockholders Equity	6.81B	6.07B	5.58B	5.59B	4.99B	3.56B
Cash Flow
Free Cash Flow	866.03M	-51.33M	725.09M	1.22B	2.79B	2.81B
Operating Cash Flow	1.55B	1.10B	2.01B	2.80B	4.08B	3.65B
Investing Cash Flow	-1.17B	-1.06B	-1.28B	-1.92B	-1.50B	-975.90M
Financing Cash Flow	136.84M	1.19B	-1.34B	-413.78M	-1.76B	-3.23B

Lenovo Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 28.75 is below the 20-day moving average (MA) of 29.82, below the 50-day MA of 29.35, and above the 200-day MA of 26.26, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 31.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNVGY.

Lenovo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNVGY	76 Outperform	$18.39B	11.05	26.61%	3.26%	21.95%	50.98%
WDC	76 Outperform	$44.37B	26.83	25.98%	0.15%	2.12%	―
NTAP	75 Outperform	$23.28B	20.61	123.00%	1.78%	3.45%	9.69%
SMCI	67 Neutral	$28.70B	29.10	17.90%	―	47.04%	-17.89%
DELL	65 Neutral	$106.67B	23.33	―	1.27%	10.68%	24.29%
HPQ	63 Neutral	$25.85B	10.07	―	4.19%	3.11%	-3.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Lenovo Group Corporate Events

Lenovo’s Earnings Call Highlights Record Growth and Strategic Focus

Lenovo’s recent earnings call painted a picture of robust financial health, marked by record-breaking revenue and significant market share growth, particularly in the PC and Infrastructure Solutions Group (ISG) segments. Despite facing challenges such as tariff volatility and ISG profitability issues, the company expressed confidence in its strategic investments and technological advancements.

Lenovo Reports Strong Q1 FY2025/26 Financial Performance

Lenovo Group Limited, a leading global technology company, specializes in designing, manufacturing, and marketing a wide range of technology products, including PCs, tablets, smartphones, and data center solutions, with a strong focus on innovation and AI-driven solutions.