Lenovo Group Limited

LNVGY

Computer Hardware · Technology

Price

$76.60

+0.82 (+1.08%)

Market Cap

$47.51B

Exchange

Other OTC

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

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

How the score breaks down

Quality

Mixed

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: 654.1M (2022) → 736.6M (2026)

Winston Score History

The full picture

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.

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

+26.9% 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

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

→ Burn rate stable

$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

16.5%

Thin — 16.5% gross margin

Profit after running costs

Operating Margin

0.1%

Thin — 0.1% operating margin

Return on the money invested

ROCE

18.7%

Strong — 18.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+25.8%

Fast-growing sales (+25.8% YoY)

Profit growth

EPS YoY

-50.8%

Earnings shrinking (-50.8% 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

410%

Turns 410% 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

0.94

Moderate — manageable debt (0.94)

Covers its interest

Interest Cover

4.83x

Adequate interest coverage (4.8x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

58.9x

Expensive — P/E 58.9

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

Cheaper or dearer next year

P/E vs Forward

+39.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (58.9 → 19.4)

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Dividends

Dividend

Dividend Yield

1.35%

Small dividend — 1.35% 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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