Lenovo Group Limited Fundamental Analysis
Lenovo Group Limited (LNVGY) shows moderate financial fundamentals with a PE ratio of 21.24, profit margin of 2.30%, and ROE of 26.95%. The company generates $79.8B in annual revenue with strong year-over-year growth of 21.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LNVGY's fundamental strength across five key dimensions:
Efficiency Score
WeakLNVGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLNVGY trades at attractive valuation levels.
Growth Score
ExcellentLNVGY delivers strong and consistent growth momentum.
Financial Health Score
ModerateLNVGY shows balanced financial health with some risks.
Profitability Score
ModerateLNVGY maintains healthy but balanced margins.
Key Financial Metrics
Is LNVGY Expensive or Cheap?
P/E Ratio
LNVGY trades at 21.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LNVGY's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values Lenovo Group Limited at 5.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.02 times EBITDA. This is generally considered low.
How Well Does LNVGY Make Money?
Net Profit Margin
For every $100 in sales, Lenovo Group Limited keeps $2.30 as profit after all expenses.
Operating Margin
Core operations generate 3.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.95 in profit for every $100 of shareholder equity.
ROA
Lenovo Group Limited generates $3.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lenovo Group Limited generates limited operating cash flow of $3.97B, signaling weaker underlying cash strength.
Free Cash Flow
Lenovo Group Limited produces free cash flow of $2.76B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.46 in free cash annually.
FCF Yield
LNVGY converts 7.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How LNVGY Stacks Against Its Sector Peers
| Metric | LNVGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.24 | 37.28 | Better (Cheaper) |
| ROE | 26.95% | 973.00% | Weak |
| Net Margin | 2.30% | 5896794845.00% | Weak |
| Debt/Equity | 0.68 | 0.42 | Weak (High Leverage) |
| Current Ratio | 0.95 | 4.95 | Weak Liquidity |
| ROA | 3.34% | -296134.00% (disorted) | Weak |
LNVGY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lenovo Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.52%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
87.39%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-51.58%
Industry Style: Growth, Innovation, High Beta
Declining