OTCPK:LNVG.F

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

6 star dividend payer and undervalued.


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: LNVG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

LNVG.F

-6.5%

US Tech

-4.2%

US Market


1 Year Return

-24.6%

LNVG.F

63.1%

US Tech

14.0%

US Market

Return vs Industry: LNVG.F underperformed the US Tech industry which returned 71.4% over the past year.

Return vs Market: LNVG.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

LNVG.FIndustryMarket
7 Day1.4%-6.5%-4.2%
30 Day-1.9%-6.6%-1.8%
90 Day2.5%10.2%2.6%
1 Year-24.6%-24.6%65.5%63.1%16.3%14.0%
3 Year17.9%17.9%112.2%97.7%43.2%34.0%
5 Year-55.7%-55.7%130.0%107.5%65.9%47.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LNVG.F ($0.72) is trading below our estimate of fair value ($1.95)

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


Price To Earnings Ratio

PE vs Industry: LNVG.F is good value based on its PE Ratio (11.5x) compared to the Tech industry average (21.5x).

PE vs Market: LNVG.F is good value based on its PE Ratio (11.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: LNVG.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LNVG.F is overvalued based on its PB Ratio (3.2x) compared to the US 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 16 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNVG.F's forecast earnings growth (16.7% per year) is above the savings rate (1.7%).

Earnings vs Market: LNVG.F's earnings (16.7% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: LNVG.F's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LNVG.F's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LNVG.F's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Lenovo Group performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNVG.F has high quality earnings.

Growing Profit Margin: LNVG.F's current net profit margins (1.4%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: LNVG.F's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: LNVG.F's earnings growth over the past year (45%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: LNVG.F earnings growth over the past year (45%) exceeded the Tech industry -3.2%.


Return on Equity

High ROE: Whilst LNVG.F's Return on Equity (20.36%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lenovo Group's financial position?


Financial Position Analysis

Short Term Liabilities: LNVG.F's short term assets ($21.4B) do not cover its short term liabilities ($25.2B).

Long Term Liabilities: LNVG.F's short term assets ($21.4B) exceed its long term liabilities ($5.5B).


Debt to Equity History and Analysis

Debt Level: LNVG.F's debt to equity ratio (112.2%) is considered high.

Reducing Debt: LNVG.F's debt to equity ratio has increased from 64.5% to 112.2% over the past 5 years.

Debt Coverage: LNVG.F's debt is well covered by operating cash flow (27%).

Interest Coverage: LNVG.F's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: LNVG.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: LNVG.F's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

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

5.10%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: LNVG.F's dividend (5.04%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LNVG.F's dividend (5.04%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.7%), LNVG.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LNVG.F's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Yuanqing Yang (54yo)

11yrs

Tenure

US$15,371,000

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 ($USD15.37M) is above average for companies of similar size in the US market ($USD6.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yuanqing Yang
Chairman & CEO11yrsUS$15.37m5.97% $505.0m
Gianfranco Lanci
Corporate President & COO4.8yrsno datano data
Chuanzhi Liu
Founder8.3yrsUS$3.17mno data
Wai Ming Wong
Executive VP & CFO12.8yrsUS$16.00kno data
Yong Rui
Senior VP & CTO3.3yrsno datano data
Arthur Hu
Senior VP & Chief Information Officer3.5yrsno datano data
Jenny Lai
Vice President of Investor Relations2.1yrsno datano data
Laura Quatela
Senior VP & Chief Legal Officer3.3yrsno datano data
Torod Neptune
Vice President of Global Communications2.9yrsno datano data
Jian Qiao
Senior VP and Chief Strategy & Marketing Officer1.7yrsno datano data

3.3yrs

Average Tenure

61yo

Average Age

Experienced Management: LNVG.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yuanqing Yang
Chairman & CEO11yrsUS$15.37m5.97% $505.0m
Chuanzhi Liu
Founder8.3yrsUS$3.17mno data
William Grabe
Lead Independent Director6.8yrsUS$336.00k0.032% $2.7m
Chih-Yuan Yang
Independent Non-Executive Director5.3yrsUS$303.00k0.0049% $414.6k
Nobuyuki Idei
Independent Non-Executive Director8.4yrsUS$301.00k0.0060% $509.4k
William Brown
Independent Non-Executive Director7.1yrsUS$301.00k0.0054% $455.2k
Linan Zhu
Non-Executive Director14.8yrsUS$301.00k0.023% $1.9m
Linghuan Zhao
Non-Executive Director8.3yrsUS$301.00k0.0059% $500.9k
Nicholas Charles Allen
Independent Non-Executive Director10.3yrsUS$329.00k0.0097% $823.3k
Gordon Robert-Halyburton Orr
Independent Non-Executive Director4.4yrsUS$300.00k0.0028% $235.2k

8.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LNVG.F's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LNVG.F 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: LNVG.F
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$65.961b
  • Listing Market Cap: HK$8.462b
  • 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)ADR EACH 1 REPR 20 HKD0.025USUSDApr 1995
LHL1DB (Deutsche Boerse AG)ADR EACH 1 REPR 20 HKD0.025DEEURApr 1995
LHL1BST (Boerse-Stuttgart)ADR EACH 1 REPR 20 HKD0.025DEEURApr 1995

Biography

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. 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, desktops, phones, accessories, monitors, ultrabooks, data center solutions, systems, software, server and storage products, networking products, and replacement parts. 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 solution, intellectual property, investment management, and computer hardware and software systems repair services. Further, it is involved in the retail and service business for consumer electronic products and related digital services; and development, ownership, licensing, and sale of communications hardware and software. The company operates in China, the Asia Pacific, Europe, the Middle East, Africa, and North America. Lenovo Group Limited has a strategic partnership with the NetApp. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:26
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.