SWX:LEN

Stock Analysis Report

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Executive Summary

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. More Details


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has Lenovo Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEN is more volatile than 90% of Swiss stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LEN's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Swiss stocks.


Market Performance


7 Day Return

0%

LEN

3.6%

CH Tech

0.1%

CH Market


1 Year Return

-25.0%

LEN

53.1%

CH Tech

-0.2%

CH Market

Return vs Industry: LEN underperformed the Swiss Tech industry which returned 53.1% over the past year.

Return vs Market: LEN underperformed the Swiss Market which returned -0.2% over the past year.


Shareholder returns

LENIndustryMarket
7 Day0%3.6%0.1%
30 Day-14.3%4.9%8.4%
90 Day-24.7%15.1%3.0%
1 Year-21.0%-25.0%55.0%53.1%3.4%-0.2%
3 Year19.8%2.0%74.3%66.8%19.8%4.9%
5 Year-31.7%-48.1%177.7%155.4%38.7%15.8%

Long-Term Price Volatility Vs. Market

How volatile is Lenovo Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lenovo Group undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEN (CHF0.57) is trading below our estimate of fair value (CHF0.91)

Significantly Below Fair Value: LEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LEN is good value based on its PE Ratio (10.3x) compared to the XE Tech industry average (21.7x).

PE vs Market: LEN is good value based on its PE Ratio (10.3x) compared to the Swiss market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: LEN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LEN is overvalued based on its PB Ratio (3.1x) compared to the XE Tech industry average (1.8x).


Next Steps

Future Growth

How is Lenovo Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEN's forecast earnings growth (6.4% per year) is above the savings rate (-0.2%).

Earnings vs Market: LEN's earnings (6.4% per year) are forecast to grow slower than the Swiss market (13.3% per year).

High Growth Earnings: LEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEN's revenue (3.3% per year) is forecast to grow slower than the Swiss market (4.8% per year).

High Growth Revenue: LEN's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEN's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

How has Lenovo Group performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEN has high quality earnings.

Growing Profit Margin: LEN's current net profit margins (1.6%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: LEN has become profitable over the past 5 years, growing earnings by 38% per year.

Accelerating Growth: LEN's earnings growth over the past year (15.1%) is below its 5-year average (38% per year).

Earnings vs Industry: LEN earnings growth over the past year (15.1%) exceeded the Tech industry 4.6%.


Return on Equity

High ROE: Whilst LEN's Return on Equity (21.66%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Lenovo Group's financial position?


Financial Position Analysis

Short Term Liabilities: LEN's short term assets ($21.3B) do not cover its short term liabilities ($24.6B).

Long Term Liabilities: LEN's short term assets ($21.3B) exceed its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: LEN's debt to equity ratio (108.8%) is considered high.

Reducing Debt: LEN's debt to equity ratio has increased from 102.6% to 108.8% over the past 5 years.

Debt Coverage: LEN's debt is well covered by operating cash flow (42.5%).

Interest Coverage: LEN's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Lenovo Group current dividend yield, its reliability and sustainability?

5.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEN's dividend (5.02%) is higher than the bottom 25% of dividend payers in the Swiss market (1.86%).

High Dividend: LEN's dividend (5.02%) is in the top 25% of dividend payers in the Swiss market (3.75%)


Stability and Growth of Payments

Stable Dividend: LEN's dividends per share have been stable in the past 10 years.

Growing Dividend: LEN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.6%), LEN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEN's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Yuanqing Yang (55 yo)

11.67yrs

Tenure

US$24,663,000

Compensation

Mr. Yuanqing Yang has been the Chairman and Chief Executive Officer of Lenovo Group Limited since April 30, 2005 and February 5, 2009 respectively. Mr. Yang serves as Executive Director of Lenovo Group sin...


CEO Compensation Analysis

Compensation vs Market: Yuanqing's total compensation ($USD24.66M) is above average for companies of similar size in the Swiss market ($USD2.24M).

Compensation vs Earnings: Yuanqing's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yuanqing Yang
Chairman & CEO11.67yrsUS$24.66m6.07%
$ 470.6m
Gianfranco Lanci
Corporate President & COO5.58yrsno datano data
Chuanzhi Liu
Founder9yrsUS$3.17mno data
Wai Ming Wong
Executive VP & CFO13.5yrsUS$16.00kno data
Yong Rui
Senior VP & CTO4yrsno datano data
Arthur Hu
Senior VP & Chief Information Officer4.25yrsno datano data
Jenny Lai
Vice President of Investor Relations2.83yrsno datano data
Laura G. Quatela
Senior VP & Chief Legal Officer4yrsno datano data
Torod Neptune
Vice President of Global Communications3.67yrsno datano data
Jian Qiao
Senior VP and Chief Strategy & Marketing Officer2.42yrsno datano data
Lan Gao
Senior Vice President of Human Resourcesno datano datano data
Zhiqiang He
Senior Vice President of Lenovo Capital and Incubator Groupno datano datano data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: LEN's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yuanqing Yang
Chairman & CEO11.67yrsUS$24.66m6.07%
$ 470.6m
Chuanzhi Liu
Founder9yrsUS$3.17mno data
William Grabe
Lead Independent Director7.5yrsUS$339.00k0.039%
$ 3.0m
Chih-Yuan Yang
Independent Non-Executive Director6yrsUS$302.00k0.0097%
$ 754.5k
William Tudor Brown
Independent Non-Executive Director7.83yrsUS$305.00k0.011%
$ 826.6k
Linan Zhu
Non-Executive Director15.58yrsUS$302.00k0.028%
$ 2.2m
Linghuan Zhao
Non-Executive Director9yrsUS$302.00k0.011%
$ 868.5k
Lan Yang
Independent Non-executive Directors0.50yrno datano data
Nicholas Charles Allen
Independent Non-Executive Director11yrsUS$329.00k0.015%
$ 1.2m
Gordon Robert-Halyburton Orr
Independent Non-Executive Director5.17yrsUS$302.00k0.0081%
$ 625.0k
Chin Wan Woo
Independent Non-Executive Director1.67yrsUS$161.00k0.0040%
$ 307.1k

7.8yrs

Average Tenure

58yo

Average Age

Experienced Board: LEN's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lenovo Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lenovo Group Limited
  • Ticker: LEN
  • Exchange: SWX
  • Founded: 1984
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$66.442b
  • Listing Market Cap: HK$7.754b
  • Shares outstanding: 12.01b
  • Website: https://www.lenovo.com

Number of Employees


Location

  • Lenovo Group Limited
  • Lincoln House
  • 23rd Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNVG.FOTCPK (Pink Sheets LLC)YesVoting Ordinary SharesUSUSDFeb 1994
992SEHK (The Stock Exchange of Hong Kong Ltd.)YesVoting Ordinary SharesHKHKDFeb 1994
LHLDB (Deutsche Boerse AG)YesVoting Ordinary SharesDEEURFeb 1994
992SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesVoting Ordinary SharesHKHKDFeb 1994
LENSWX (SIX Swiss Exchange)YesVoting Ordinary SharesCHCHFFeb 1994
992SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesVoting Ordinary SharesHKHKDFeb 1994
LNVG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 1995
LHL1DB (Deutsche Boerse AG)SPONSORED ADRDEEURApr 1995
LHL1BST (Boerse-Stuttgart)SPONSORED ADRDEEURApr 1995

Biography

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It offers commercial and consumer personal computers, as well as servers and works...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 18:11
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.