Lenovo Group Limited

LNVGF

Computer Hardware · Technology

Price

$3.75

-0.02 (-0.58%)

Market Cap

$46.52B

Exchange

Other OTC

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Strong

Stability

Good

Valuation

Good

Dividends

Mixed

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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)

Winston Score History

The full picture

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.

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 improving

$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

Profit per sale

Gross Margin

15.9%

Thin — 15.9% gross margin

Profit after running costs

Operating Margin

6.9%

Modest — 6.9% operating margin

Return on the money invested

ROCE

31.4%

Exceptional — 31.4% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+25.7%

Fast-growing sales (+25.7% YoY)

Profit growth

EPS YoY

-51.5%

Earnings shrinking (-51.5% YoY)

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

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

415%

Turns 415% of profit into real cash

Spare cash per sale

FCF Margin

2.2%

Thin free cash flow (2.2%)

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

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Stability

What it owes vs what it owns

Debt / Equity

0.88

Moderate — manageable debt (0.88)

Covers its interest

Interest Cover

5.94x

Adequate interest coverage (5.9x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

57.4x

Expensive — P/E 57.4

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+39.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (57.4 → 17.6)

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Dividends

Dividend

Dividend Yield

1.46%

Small dividend — 1.46% yield

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

Dividend record

Dividend Growth

+6.5%

Dividend growing modestly (6.5% YoY)

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