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Lenovo Group

DB:LHL
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LHL
DB
HK$88B
Market Cap
  1. Home
  2. DE
  3. Tech
Company description

Lenovo Group Limited, together with its subsidiaries, develops, manufactures, and markets technology products and services. The last earnings update was 62 days ago. More info.


Add to Portfolio Compare Print
  • Lenovo Group has significant price volatility in the past 3 months.
LHL Share Price and Events
7 Day Returns
4.5%
DB:LHL
2.1%
DE Tech
1%
DE Market
1 Year Returns
116.7%
DB:LHL
1.5%
DE Tech
-5.6%
DE Market
LHL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lenovo Group (LHL) 4.5% 6.5% 28.4% 116.7% 15.1% 0.2%
DE Tech 2.1% 5.1% 11.9% 1.5% 71.5% 110.7%
DE Market 1% 6.1% 8.4% -5.6% 10.9% 13.8%
1 Year Return vs Industry and Market
  • LHL outperformed the Tech industry which returned 1.5% over the past year.
  • LHL outperformed the Market in Germany which returned -5.6% over the past year.
Price Volatility
LHL
Industry
5yr Volatility vs Market
Related Companies

LHL Value

 Is Lenovo Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lenovo Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lenovo Group.

DB:LHL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LHL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.045 (1 + (1- 25%) (39.57%))
1.238
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.238 * 6.65%)
8.46%

Discounted Cash Flow Calculation for DB:LHL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lenovo Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:LHL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.46%)
2019 1,482.58 Analyst x5 1,366.90
2020 1,112.90 Analyst x10 946.00
2021 1,195.12 Analyst x10 936.62
2022 1,255.58 Est @ 5.06% 907.23
2023 1,300.91 Est @ 3.61% 866.63
2024 1,334.67 Est @ 2.6% 819.75
2025 1,359.83 Est @ 1.89% 770.03
2026 1,378.70 Est @ 1.39% 719.80
2027 1,393.04 Est @ 1.04% 670.54
2028 1,404.13 Est @ 0.8% 623.14
Present value of next 10 years cash flows $8,626.63
DB:LHL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,404.13 × (1 + 0.23%) ÷ (8.46% – 0.23%)
$17,089.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $17,089.35 ÷ (1 + 8.46%)10
$7,584.09
DB:LHL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,626.63 + $7,584.09
$16,210.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,210.72 / 12,014.79
$11.94
DB:LHL Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:992)
7.842
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $1.35 x 7.842
HK$10.58
Non-primary Listing Adjustment Factor 1 share in DB:LHL represents 0.11304x of SEHK:992
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11304x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 10.58 x 0.11304
€1.20
Value per share (EUR) From above. €1.20
Current discount Discount to share price of €0.83
= -1 x (€0.83 - €1.20) / €1.20
30.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lenovo Group is available for.
Intrinsic value
30%
Share price is €0.83 vs Future cash flow value of €1.2
Current Discount Checks
For Lenovo Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lenovo Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lenovo Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lenovo Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lenovo Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LHL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.04
SEHK:992 Share Price ** SEHK (2019-04-24) in HKD HK$7.36
SEHK:992 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.94
Europe Tech Industry PE Ratio Median Figure of 22 Publicly-Listed Tech Companies 13.1x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lenovo Group.

DB:LHL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:992 Share Price ÷ EPS (both in USD)

= 0.94 ÷ 0.04

21.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lenovo Group is overvalued based on earnings compared to the Europe Tech industry average.
  • Lenovo Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Lenovo Group's expected growth come at a high price?
Raw Data
DB:LHL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
22.8%per year
Europe Tech Industry PEG Ratio Median Figure of 12 Publicly-Listed Tech Companies 0.87x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:LHL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.83x ÷ 22.8%

0.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lenovo Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Lenovo Group's assets?
Raw Data
DB:LHL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.21
SEHK:992 Share Price * SEHK (2019-04-24) in HKD HK$7.36
SEHK:992 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.94
Europe Tech Industry PB Ratio Median Figure of 30 Publicly-Listed Tech Companies 1.28x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:LHL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:992 Share Price ÷ Book Value per Share (both in USD)

= 0.94 ÷ 0.21

4.57x

* Primary Listing of Lenovo Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lenovo Group is overvalued based on assets compared to the Europe Tech industry average.
X
Value checks
We assess Lenovo Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tech industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tech industry average (and greater than 0)? (1 check)
  5. Lenovo Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LHL Future Performance

 How is Lenovo Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lenovo Group expected to grow at an attractive rate?
  • Lenovo Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Lenovo Group's earnings growth is expected to exceed the Germany market average.
  • Lenovo Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LHL Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LHL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 22.8%
DB:LHL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 4.7%
Europe Tech Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
Europe Tech Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LHL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LHL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 55,842 1,762 930 16
2020-03-31 53,645 1,490 764 19
2019-03-31 50,927 1,648 613 18
DB:LHL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 49,966 1,197 511
2018-09-30 48,869 -139 -11
2018-06-30 47,250 157 -40
2018-03-31 45,350 -756 -189
2017-12-31 44,290 205 -115
2017-09-30 43,521 339 272
2017-06-30 42,991 1,534 290
2017-03-31 43,035 2,120 535
2016-12-31 42,589 1,212 608
2016-09-30 43,333 1,260 810
2016-06-30 44,252 610 -60
2016-03-31 44,912 292 -128

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lenovo Group's earnings are expected to grow significantly at over 20% yearly.
  • Lenovo Group's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LHL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Lenovo Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LHL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 0.08 0.11 0.05 17.00
2020-03-31 0.07 0.10 0.04 20.00
2019-03-31 0.05 0.07 0.04 20.00
DB:LHL Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.04
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 -0.02
2017-12-31 -0.01
2017-09-30 0.02
2017-06-30 0.03
2017-03-31 0.05
2016-12-31 0.06
2016-09-30 0.07
2016-06-30 -0.01
2016-03-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lenovo Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lenovo Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lenovo Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LHL Past Performance

  How has Lenovo Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lenovo Group's growth in the last year to its industry (Tech).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lenovo Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Lenovo Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Lenovo Group has become profitable in the last year making it difficult to compare the Europe Tech industry average.
Earnings and Revenue History
Lenovo Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lenovo Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LHL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 49,965.97 510.91 4,714.97 1,221.89
2018-09-30 48,869.38 -10.63 4,591.14 1,293.47
2018-06-30 47,250.45 -39.99 4,604.40 1,292.06
2018-03-31 45,349.94 -189.32 4,590.57 1,273.73
2017-12-31 44,290.33 -115.15 4,670.17 1,285.57
2017-09-30 43,520.55 272.05 4,648.67 1,259.62
2017-06-30 42,990.86 289.85 4,610.56 1,297.51
2017-03-31 43,034.73 535.08 4,532.62 1,361.69
2016-12-31 42,588.78 608.23 4,376.93 1,374.75
2016-09-30 43,333.22 810.18 4,350.96 1,436.94
2016-06-30 44,252.34 -60.35 4,397.96 1,457.57
2016-03-31 44,912.10 -128.15 4,481.58 1,491.37
2015-12-31 47,113.08 -208.21 4,673.20 1,564.00
2015-09-30 48,291.46 -255.42 4,790.39 1,596.96
2015-06-30 46,616.80 720.36 4,480.57 1,430.30
2015-03-31 46,295.59 828.72 4,185.30 1,220.92
2014-12-31 44,319.55 887.08 3,838.27 981.70
2014-09-30 41,016.60 899.21 3,443.73 755.65
2014-06-30 40,314.67 856.80 3,354.16 742.31
2014-03-31 38,707.13 817.23 3,302.98 732.45
2013-12-31 37,181.79 785.79 3,179.59 720.61
2013-09-30 35,751.94 725.35 3,161.25 695.49
2013-06-30 34,650.80 667.71 3,145.72 658.87
2013-03-31 33,873.40 635.15 3,087.94 623.99
2012-12-31 33,537.32 575.10 2,968.37 589.99
2012-09-30 32,550.43 523.69 2,745.90 545.28
2012-06-30 31,664.22 505.56 2,624.81 511.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lenovo Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lenovo Group used its assets less efficiently than the Europe Tech industry average last year based on Return on Assets.
  • Lenovo Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lenovo Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tech industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lenovo Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LHL Health

 How is Lenovo Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lenovo Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lenovo Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Lenovo Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lenovo Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lenovo Group Company Filings, last reported 3 months ago.

DB:LHL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,869.98 4,462.21 3,527.07
2018-09-30 3,953.31 4,459.90 2,343.21
2018-06-30 4,338.12 4,480.78 2,705.82
2018-03-31 4,545.99 3,815.42 1,874.85
2017-12-31 4,376.01 2,674.49 1,765.18
2017-09-30 4,188.41 2,661.31 1,280.02
2017-06-30 4,178.09 2,843.41 1,559.66
2017-03-31 4,095.22 3,036.70 2,892.91
2016-12-31 3,034.61 2,529.66 2,703.27
2016-09-30 3,182.76 2,527.03 2,468.05
2016-06-30 3,311.13 3,230.61 2,079.66
2016-03-31 3,026.25 3,250.93 2,028.62
2015-12-31 2,915.11 2,749.86 2,703.81
2015-09-30 3,010.48 3,092.96 2,955.98
2015-06-30 4,078.18 3,440.73 2,896.02
2015-03-31 4,106.12 3,054.12 2,959.53
2014-12-31 4,224.85 2,719.24 3,992.42
2014-09-30 3,086.43 2,089.45 5,324.04
2014-06-30 3,254.73 1,953.76 5,533.48
2014-03-31 3,024.72 455.60 3,953.94
2013-12-31 2,926.97 456.01 3,820.80
2013-09-30 2,738.76 451.96 3,016.13
2013-06-30 2,808.31 467.29 3,564.95
2013-03-31 2,680.18 478.97 3,573.70
2012-12-31 2,601.67 321.53 4,481.65
2012-09-30 2,393.37 324.36 3,876.53
2012-06-30 2,467.71 41.31 3,767.23
  • Lenovo Group's level of debt (115.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (15.6% vs 115.3% today).
  • Debt is well covered by operating cash flow (26.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess Lenovo Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lenovo Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LHL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.6%
Current annual income from Lenovo Group dividends. Estimated to be 3.56% next year.
If you bought €2,000 of Lenovo Group shares you are expected to receive €72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lenovo Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Lenovo Group's dividend is below the markets top 25% of dividend payers in Germany (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LHL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Europe Tech Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LHL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 0.03 15.00
2020-03-31 0.03 17.00
2019-03-31 0.03 17.00
DB:LHL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-24 0.034 5.065
2017-05-25 0.034 6.051
2016-11-03 0.034 5.407
2016-05-26 0.034 5.265
2015-05-26 0.034 3.647
2015-05-21 0.034 2.030
2014-11-06 0.031 2.115
2014-05-29 0.031 2.177
2014-05-21 0.031 2.501
2013-05-31 0.024 2.238
2013-05-23 0.024 2.400
2012-11-08 0.019 1.932
2012-05-23 0.026 3.170
2011-11-02 0.011 1.408
2011-05-26 0.010 1.577
2010-11-10 0.009 1.506
2010-05-27 0.012 1.895
2010-02-04 0.003 0.371
2009-11-05 0.003 0.416
2009-08-06 0.000 0.000
2009-05-21 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lenovo Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Lenovo Group only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Lenovo Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Lenovo Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lenovo Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lenovo Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LHL Management

 What is the CEO of Lenovo Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yuanqing Yang
COMPENSATION $18,752,000
AGE 53
TENURE AS CEO 10.2 years
CEO Bio

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 since 2018. Mr. Yang serves as an Advisor of WI Harper Group. He is a Guest Professor at the University of Science and Technology of China. Mr. Yang has nearly 30 years of experience in IT industry. He served as the Head of Global Unit of Individuals & Small Businesses sales at Lenovo Group Limited since April 2007. He served as President of Legend Group Limited. Previously, he served as the Chief Executive Officer of Lenovo Group Limited from December 16, 1997 to April 30, 2005 and also served as its President. Mr. Yang served as Vice-Chairman of Lenovo Group Limited until April 30, 2005. He serves as a Member of Advisory Board at Duke Kunshan University. He has been an Independent Director of Baidu, Inc. since October 1, 2015. He has been an Executive Director of Lenovo Group Limited since December 16, 1997. He serves as a Non-Executive Director at Beijing Ufsoft Co., Ltd. Mr. Yang joined Lenovo in 1989 and has led from the initial China-based PC maker to a diversified global technology leader. In 2011, FinanceAsia named Mr. Yang the Best CEO in China. He serves as a Director of Sureinvest Holdings Limited. He serves as a Director of China's Entrepreneur Association. Mr. Yang serves as an Independent Non-executive Director of UFIDA Software Co. Ltd. He serves as a Trustee of Ravenscroft School Inc. He was awarded Ten Most Outstanding Youth of Beijing in 1998 and won the Medal of 5.4 Youth in China in 1999, which is the highest honor given to youth by the Chinese government. He was selected by BusinessWeek magazine as one of the Stars of Asia in the years of 1999 and 2001. He was named as “Asian Businessman of the Year,” Forbes Asia. He was selected by the Chinese media as one of China's Ten Star Entrepreneurs and Ten Most Valuable Managers. In 2004 and 2012, Mr. Yang was named one of the “CCTV China Annual Economic Figures. He was listed on Barron’s list of Best CEOs in 2013, 2014 and 2015. In 2014, Mr. Yang won an Edison Achievement Award for Innovation. He is a Member of the International Advisory Council of Brookings Institute. Mr. Yang currently serves as a deputy to the 13th National People’s Congress of China. Mr. Yang graduated with a Master degree from the Department of Computer Science from University of Science and Technology of China ('USTC') in 1989.

CEO Compensation
  • Yuanqing's compensation has been consistent with company performance over the past year.
  • Yuanqing's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Lenovo Group management team in years:

2.4
Average Tenure
60
Average Age
  • The tenure for the Lenovo Group management team is about average.
Management Team

Yuanqing Yang

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
53
TENURE
10.2 yrs

Gianfranco Lanci

TITLE
Corporate President & COO
AGE
64
TENURE
4 yrs

Chuanzhi Liu

TITLE
Founder
COMPENSATION
$3M
AGE
74

Wai Ming Wong

TITLE
Executive VP & CFO
COMPENSATION
$16K
AGE
60
TENURE
11.9 yrs

Yong Rui

TITLE
Senior VP & CTO
AGE
48
TENURE
2.4 yrs

Arthur Hu

TITLE
Senior VP & Chief Information Officer
TENURE
2.7 yrs

Jenny Lai

TITLE
Vice President of Investor Relations
TENURE
1.3 yrs

Laura Quatela

TITLE
Senior VP & Chief Legal Officer
AGE
61
TENURE
2.4 yrs

Torod Neptune

TITLE
Vice President of Global Communications
TENURE
2.1 yrs

Gina Qiao

TITLE
Senior VP and Chief Strategy & Marketing Officer
AGE
50
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Lenovo Group board of directors in years:

8.5
Average Tenure
61
Average Age
  • The tenure for the Lenovo Group board of directors is about average.
Board of Directors

Chuanzhi Liu

TITLE
Founder
COMPENSATION
$3M
AGE
74
TENURE
7.4 yrs

Mary Ma

TITLE
Independent Non-Executive Director
COMPENSATION
$309K
AGE
65
TENURE
21.9 yrs

Yuanqing Yang

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
53
TENURE
14 yrs

Nick Allen

TITLE
Independent Non-Executive Director
COMPENSATION
$316K
AGE
63
TENURE
9.4 yrs

Bill Grabe

TITLE
Lead Independent Director
COMPENSATION
$324K
AGE
80
TENURE
5.9 yrs

Linan Zhu

TITLE
Non-Executive Director
COMPENSATION
$289K
AGE
55
TENURE
14 yrs

Edward Tian

TITLE
Independent Non-Executive Director
COMPENSATION
$289K
AGE
55
TENURE
11.7 yrs

Nobuyuki Idei

TITLE
Independent Non-Executive Director
COMPENSATION
$289K
AGE
81
TENURE
7.6 yrs

John Huan Zhao

TITLE
Non-Executive Director
COMPENSATION
$289K
AGE
55
TENURE
7.4 yrs

William Brown

TITLE
Independent Non-Executive Director
COMPENSATION
$289K
AGE
59
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • Lenovo Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Mar 19 Sell Linan Zhu Individual 12. Mar 19 12. Mar 19 -224,000 €0.78 €-174,228
08. Mar 19 Sell Linan Zhu Individual 06. Mar 19 06. Mar 19 -199,937 €0.81 €-162,320
04. Mar 19 Sell Xuezheng Z. Ma Individual 28. Feb 19 28. Feb 19 -500,000 €0.83 €-413,897
17. Dec 18 Buy Gordon Robert-Halyburton Orr Individual 12. Dec 18 12. Dec 18 2,261 €0.64 €1,441
17. Dec 18 Buy William Brown Individual 12. Dec 18 12. Dec 18 4,959 €0.64 €3,160
17. Dec 18 Buy Nicholas Charles Allen Individual 12. Dec 18 12. Dec 18 10,855 €0.64 €6,917
17. Dec 18 Buy Nobuyuki Idei Individual 12. Dec 18 12. Dec 18 1,494 €0.64 €952
17. Dec 18 Buy Chih-Yuan Yang Individual 12. Dec 18 12. Dec 18 4,317 €0.64 €2,751
17. Dec 18 Buy William Grabe Individual 12. Dec 18 12. Dec 18 5,912 €0.64 €3,767
07. Dec 18 Sell BlackRock, Inc. Company 04. Dec 18 04. Dec 18 -48,489,997 €0.64 €-31,021,484
30. Nov 18 Buy William Grabe Individual 29. Nov 18 29. Nov 18 46,260 €0.61 €28,063
05. Oct 18 Buy John Huan Zhao Individual 02. Oct 18 02. Oct 18 268 €0.64 €171
13. Jul 18 Buy William Grabe Individual 13. Jul 18 13. Jul 18 59,809 €0.46 €27,294
X
Management checks
We assess Lenovo Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lenovo Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LHL News

Simply Wall St News

LHL Company Info

Description

Lenovo Group Limited, together with its subsidiaries, develops, manufactures, and markets technology products and services. It offers commercial and consumer personal computers, as well as servers and workstations; mobile Internet devices, including tablets and smart phones; storage and networking products; memory and processors; rack and power infrastructure; and laptops, desktops, and accessories, as well as operating systems, security, and systems management software. The company also distributes IT products, mobile phones, smart phones and tablets, and server and storage products; retails and services consumer electronic products; develops, owns, licenses, and sells communications hardware and software; offers repair services for computer hardware and software systems; and researches and develops mobile software. In addition, it provides business planning, management, global supply chain, finance, and administration support services. The company operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited has a strategic partnership with the NetApp to help customers modernize IT and enhance their digital transformation; and the Veeam Software to deliver the intelligent data management required to enhance and grow businesses. The company was founded in 1984 and is headquartered in Quarry Bay, Hong Kong, and is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange.

Details
Name: Lenovo Group Limited
LHL
Exchange: DB
Founded: 1984
HK$10,075,490,699
12,014,791,614
Website: http://www.lenovo.com
Address: Lenovo Group Limited
Lincoln House,
23rd Floor,
Quarry Bay,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 992 Voting Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Feb 1994
OTCPK LNVG.F Voting Ordinary Shares Pink Sheets LLC US USD 16. Feb 1994
DB LHL Voting Ordinary Shares Deutsche Boerse AG DE EUR 16. Feb 1994
SWX LEN Voting Ordinary Shares SIX Swiss Exchange CH CHF 16. Feb 1994
SHSC 992 Voting Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 16. Feb 1994
SZSC 992 Voting Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 16. Feb 1994
OTCPK LNVG.Y ADR EACH 1 REPR 20 HKD0.025 Pink Sheets LLC US USD 20. Apr 1995
DB LHL1 ADR EACH 1 REPR 20 HKD0.025 Deutsche Boerse AG DE EUR 20. Apr 1995
BST LHL1 ADR EACH 1 REPR 20 HKD0.025 Boerse-Stuttgart DE EUR 20. Apr 1995
Number of employees
Current staff
Staff numbers
54,000
Lenovo Group employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 21:19
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.