company background image
992

Lenovo GroupSEHK:992 Stock Report

Market Cap

HK$99.1b

7D

-2.5%

1Y

64.6%

Updated

24 Sep, 2021

Data

Company Financials +
992 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends5/6

992 Overview

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

Lenovo Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lenovo Group
Historical stock prices
Current Share PriceHK$8.23
52 Week HighHK$4.81
52 Week LowHK$11.60
Beta1.14
1 Month Change2.36%
3 Month Change-9.36%
1 Year Change64.60%
3 Year Change43.88%
5 Year Change60.12%
Change since IPO1,596.91%

Recent News & Updates

Shareholder Returns

992HK TechHK Market
7D-2.5%-1.5%-0.9%
1Y64.6%20.7%10.1%

Return vs Industry: 992 exceeded the Hong Kong Tech industry which returned 20.7% over the past year.

Return vs Market: 992 exceeded the Hong Kong Market which returned 10.1% over the past year.

Price Volatility

Is 992's price volatile compared to industry and market?
992 volatility
992 Beta1.14
Industry Beta1.37
Market Beta1

Stable Share Price: 992 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 992's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198452,000Yuanqing Yanghttps://www.lenovo.com

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group and Data Center 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.

Lenovo Group Fundamentals Summary

How do Lenovo Group's earnings and revenue compare to its market cap?
992 fundamental statistics
Market CapUS$12.73b
Earnings (TTM)US$1.39b
Revenue (TTM)US$64.32b

9.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
992 income statement (TTM)
RevenueUS$64.32b
Cost of RevenueUS$53.77b
Gross ProfitUS$10.55b
ExpensesUS$9.16b
EarningsUS$1.39b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin16.40%
Net Profit Margin2.16%
Debt/Equity Ratio96.1%

How did 992 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 992 (HK$8.23) is trading below our estimate of fair value (HK$23.05)

Significantly Below Fair Value: 992 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 992's PE Ratio (9.2x) is in line with the Hong Kong Tech industry average.

PE vs Market: 992 is good value based on its PE Ratio (9.2x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 992 is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 992 is overvalued based on its PB Ratio (3.9x) compared to the HK Tech industry average (1.2x).


Future Growth

How is Lenovo Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 992's forecast earnings growth (2.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 992's earnings (2.2% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 992's earnings are forecast to grow, but not significantly.

Revenue vs Market: 992's revenue (3% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 992's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 992's Return on Equity is forecast to be high in 3 years time (27%)


Past Performance

How has Lenovo Group performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 992 has high quality earnings.

Growing Profit Margin: 992's current net profit margins (2.2%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 992 has become profitable over the past 5 years, growing earnings by 32.2% per year.

Accelerating Growth: 992's earnings growth over the past year (94.1%) exceeds its 5-year average (32.2% per year).

Earnings vs Industry: 992 earnings growth over the past year (94.1%) exceeded the Tech industry 73.4%.


Return on Equity

High ROE: 992's Return on Equity (37.3%) is considered high.


Financial Health

How is Lenovo Group's financial position?


Financial Position Analysis

Short Term Liabilities: 992's short term assets ($25.5B) do not cover its short term liabilities ($29.2B).

Long Term Liabilities: 992's short term assets ($25.5B) exceed its long term liabilities ($7.1B).


Debt to Equity History and Analysis

Debt Level: 992's debt to equity ratio (96.1%) is considered high.

Reducing Debt: 992's debt to equity ratio has reduced from 97.4% to 96.1% over the past 5 years.

Debt Coverage: 992's debt is well covered by operating cash flow (94.6%).

Interest Coverage: 992's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

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

3.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 992's dividend (3.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 992's dividend (3.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 992's dividends per share have been stable in the past 10 years.

Growing Dividend: 992's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.6%), 992's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 992's dividends in 3 years are forecast to be well covered by earnings (34.3% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Yuanqing Yang (56 yo)

12.58yrs

Tenure

US$26,166,000

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 ($USD26.17M) is above average for companies of similar size in the Hong Kong market ($USD1.02M).

Compensation vs Earnings: Yuanqing's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 992's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: 992's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 992 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 employee growth, exchange listings and data sources


Key Information

  • Name: Lenovo Group Limited
  • Ticker: 992
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$99.103b
  • Shares outstanding: 12.04b
  • Website: https://www.lenovo.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 15:28
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.