WinstonWınston
Lenovo Group Limited logo

Lenovo Group Limited

LNVGY
44
Computer Hardware · Technology
Price
$55.08
-1.39 (-2.46%)
Market Cap
$34.16B
Exchange
Other OTC
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

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: 654.1M (2022) → 736.6M (2026)

Lenovo is a Chinese technology company that makes personal computers, laptops, tablets, smartphones, and servers. Its most well-known products include ThinkPad laptops and IdeaPad computers, sold to both everyday consumers and large businesses around the world. Lenovo is the largest PC maker in the world by shipments, a position it has held for over a decade.

Lenovo makes most of its money by selling hardware directly to consumers, businesses, and governments. It also has a growing services and solutions segment that provides IT management and cloud services, which carry higher margins than hardware. The company operates globally, with strong sales in China, North America, and Europe, generating over $60 billion in annual revenue. Its main competitive advantage is massive scale and supply chain efficiency, but its thin operating margins leave little room for error. The biggest risk is that PC demand is cyclical and has been declining as the post-pandemic upgrade cycle fades.

Winston Score History

Growth Profile

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

Revenue Growth

+26.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+473.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2.5B/ year

Rising (+9% 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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

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.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY
+17.2%
Fast-growing sales (17.2% YoY)
EPS YoY
-14.9%
Earnings shrinking (-14.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion
125%
Turns 125% of profit into real cash
FCF Margin
0.7%
Thin free cash flow (0.7%)

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

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity
0.64
Moderate — manageable debt (0.64)
Interest Cover
4.00x
Adequate interest coverage (4.0x)

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

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)
22.4x
Growth-priced — P/E 22.4

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

P/E vs Forward
+8.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (22.4 → 13.8)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield
1.82%
Small dividend — 1.82% yield

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

Dividend Growth
+6.5%
Dividend growing modestly (6.5% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free
🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.
Start free trial