Lenovo Group (LNVGY) AI Stock Analysis

• Market Cap: $17.13B
• Dividend Yield: 3.5%
• Average Volume (3M): 44.34K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.63
• Revenue Growth: 21.48%
• EPS Growth: 34.77%
• Country: US
• Employees: 69,500
• Sector: Technology
• Sector Strength: 94
• Industry: Computer Hardware
• EPS (TTM): 0.73
• Shares Outstanding: 620,233,000
• 10 Day Avg. Volume: 27,869
• 30 Day Avg. Volume: 44,337
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 6.23
• 1Y Price Target: $31.00
• Price Target Upside: 12.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $31.00 ▲(12.03% Upside)

Lenovo is a robust performer in the computer hardware industry, driven by strong earnings and valuation metrics. While technical indicators support further growth, attention should be given to liquidity challenges and debt management. Strategic initiatives and resilience in the face of geopolitical challenges bolster the company's position.

Lenovo Group Business Overview & Revenue Model

Company Description

Lenovo 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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 27.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 27.67 is above the 20-day moving average (MA) of 26.72, above the 50-day MA of 24.67, and above the 200-day MA of 24.92, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 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	79 Outperform	$17.13B	10.31	26.61%	3.50%	21.48%	34.77%
NTAP	76 Outperform	$21.57B	18.99	108.51%	1.91%	5.02%	22.19%
STX	76 Outperform	$33.12B	23.00	-109.27%	1.85%	38.86%	337.22%
WDC	72 Outperform	$26.60B	16.66	25.98%	0.13%	2.12%	―
DELL	71 Outperform	$94.27B	22.14	-179.12%	1.40%	7.68%	27.73%
HPQ	65 Neutral	$25.29B	10.38	84.33%	4.25%	2.08%	-12.41%
Sector *	57 Neutral	HK$14.47B	9.47	-0.60%	4.33%	7.09%	-37.88%