Lenovo Group Limited

LNVGF

Computer Hardware · Technology

Price

$3.71

-0.11 (-2.88%)

Market Cap

$46.02B

Exchange

Other OTC

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 13, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+12.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 13.08B (2022) → 14.73B (2026)

Lenovo Group Limited makes personal computers, laptops, tablets, smartphones, and servers. It sells these products to everyday consumers, businesses, schools, and governments around the world. Lenovo is the largest PC maker in the world by shipments, owning well-known brands like ThinkPad and IdeaPad.

Lenovo makes most of its money by selling hardware directly to customers and through retail and business channels. It also earns revenue from IT services and infrastructure solutions, including data center equipment sold under its ISG (Infrastructure Solutions Group) segment. The company operates globally, with major markets in China, North America, and Europe, generating over $60 billion in annual revenue. Its scale and supply chain efficiency give it a cost advantage over smaller rivals, but thin margins — typical for hardware businesses — mean profitability is sensitive to component costs and consumer demand cycles. The key growth driver is expanding its higher-margin services and solutions business to reduce reliance on commodity PC sales.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+26.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+495.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2.5B/ year

↑ Rising (+8% vs prior year)

3.0% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

30.3%ownership

Insiders own a meaningful stake in the company

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$7.3B cash & investments at current burn rate

Revenue accelerating

Lenovo Group Limited grew revenue 27% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

16.4%

Thin — 16.4% gross margin

Operating Margin

3.9%

Thin — 3.9% operating margin

ROCE

6.7%

Weak — 6.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+20.1%

Fast-growing sales (+20.1% YoY)

EPS YoY

+38.8%

Earnings growing fast (+38.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

217%

Turns 217% of profit into real cash

FCF Margin

3.5%

Thin free cash flow (3.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.64

Moderate — manageable debt (0.64)

Interest Cover

4.64x

Adequate interest coverage (4.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

23.7x

Growth-priced — P/E 23.7

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+6.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (23.7 → 17.6)

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Dividends

Dividend Yield

1.46%

Small dividend — 1.46% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+6.5%

Dividend growing modestly (6.5% YoY)

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