Lenovo Group (0992) AI Stock Analysis

• Market Cap: $138.44B
• Dividend Yield: 3.38%
• Average Volume (3M): 77.37M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.11
• Revenue Growth: 21.51%
• EPS Growth: 50.43%
• Country: HK
• Employees: 69,500
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.28
• 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: 1.05
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 13.08
• Enterprise Value/Ebitda: 38.72
• 1Y Price Target: $14.22
• Price Target Upside: 23.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: HK$14.50 ▲(25.54% Upside)

Lenovo's strong revenue growth and strategic investments in AI and R&D are the most significant factors driving the score. The technical indicators support a bullish outlook, while the valuation remains attractive. Despite some challenges in cash flow and profitability, the overall outlook is positive, supported by robust earnings performance and strategic advancements.

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, 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 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, supported by efficient cost management. However, the low net profit margin and negative free cash flow highlight potential challenges in sustaining cash generation. The balance sheet is moderately leveraged, with effective use of equity, but faces potential risks due to low equity ratio.

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	72.47B	69.08B	56.86B	61.95B	71.62B	60.74B
Gross Profit	11.14B	11.10B	9.80B	10.50B	12.05B	9.77B
EBITDA	3.76B	3.67B	3.56B	4.14B	4.35B	3.10B
Net Income	1.65B	1.38B	1.01B	1.61B	2.03B	1.21B
Balance Sheet
Total Assets	0.00	44.22B	38.75B	38.92B	44.51B	37.99B
Cash, Cash Equivalents and Short-Term Investments	4.79B	4.82B	3.57B	4.32B	4.06B	3.08B
Total Debt	0.00	5.73B	3.96B	4.36B	3.83B	5.35B
Total Liabilities	-6.66B	37.46B	32.67B	32.87B	39.12B	34.38B
Stockholders Equity	6.66B	6.07B	5.58B	5.59B	4.44B	3.56B
Cash Flow
Free Cash Flow	-141.03M	-51.33M	725.09M	1.22B	2.79B	2.81B
Operating Cash Flow	371.67M	1.10B	2.01B	2.80B	4.08B	3.65B
Investing Cash Flow	-689.51M	-1.06B	-1.28B	-1.92B	-1.50B	-975.90M
Financing Cash Flow	1.16B	1.19B	-1.34B	-413.78M	-1.76B	-3.23B

Lenovo Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.55
• 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 HK:0992, the sentiment is Positive. The current price of 11.55 is below the 20-day moving average (MA) of 11.60, above the 50-day MA of 11.43, and above the 200-day MA of 10.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 69.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0992.

Lenovo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0992	―	$138.44B	10.68	26.62%	3.38%	21.51%	50.43%
1263	―	$2.34B	7.35	10.76%	6.35%	15.67%	35.62%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3336	―	€1.65B	―	-11.23%	―	-11.28%	-122.85%
6939	―	HK$269.75M	-8.60	-8.35%	3.78%	2.22%	-434.25%
2436	―	HK$1.44B	―	-1.60%	―	32.83%	90.24%
3638	―	HK$486.21M	-13.98	-31.98%	―	-33.08%	-2532.02%

Lenovo Group Corporate Events

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.

The most recent analyst rating on (HK:0992) stock is a Buy with a HK$14.50 price target. To see the full list of analyst forecasts on Lenovo Group stock, see the HK:0992 Stock Forecast page.

Lenovo Group Reports Strong Q1 FY2025/26 Growth

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 infrastructure solutions, with a strong emphasis on innovation in AI and hybrid cloud services.

Lenovo Achieves Record Revenue and Profit Growth in Q1 FY2025/26

Lenovo Group Limited reported a strong financial performance for the first quarter of FY2025/26, with a 22% increase in revenue year-on-year, reaching an all-time high of $18.8 billion. The company’s profit attributable to equity holders surged by 108% year-on-year, highlighting robust growth across all business groups. The Intelligent Devices Group achieved a record global PC market share, while the Infrastructure Solutions Group and Solutions and Services Group also posted significant revenue growth, driven by advancements in AI and strategic execution. Lenovo’s increased R&D spending and focus on hybrid AI are expected to enhance its market leadership and operational efficiency, positioning the company well amidst macroeconomic uncertainties.

The most recent analyst rating on (HK:0992) stock is a Hold with a HK$13.00 price target. To see the full list of analyst forecasts on Lenovo Group stock, see the HK:0992 Stock Forecast page.

Lenovo Appoints Amit Midha as Non-Executive Director

Lenovo Group Limited has announced the appointment of Mr. Amit Midha as a non-executive director, effective from August 13, 2025. Mr. Midha brings extensive experience from his previous roles, including CEO of Alat Technologies and a long tenure at Dell, where he led significant growth in the Asia Pacific region. His appointment is expected to enhance Lenovo’s strategic direction and strengthen its leadership team, potentially impacting its market positioning and operations positively.

The most recent analyst rating on (HK:0992) stock is a Hold with a HK$13.00 price target. To see the full list of analyst forecasts on Lenovo Group stock, see the HK:0992 Stock Forecast page.

Lenovo Announces Board of Directors and Their Roles

Lenovo Group Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement underscores the company’s commitment to robust corporate governance and strategic leadership, which could influence its operational efficiency and market positioning.

The most recent analyst rating on (HK:0992) stock is a Hold with a HK$13.00 price target. To see the full list of analyst forecasts on Lenovo Group stock, see the HK:0992 Stock Forecast page.