One-glance verdict
Within fair range
$77.75 our estimate vs market $83.85
Wall Street consensus: $117.69 (51.4% higher than our fair-value estimate)
8% above our estimate
Fundamentals snapshot
Lenovo Group Limited
LNVGY · PNK · Technology · Computer Hardware
Current price
$83.85
52-week range
$21.00 - $89.99
Market cap
$52.25B
Balance sheet
Watch
4.77x Stretched
Net debt $548.75M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 20.3% last year.
- Reward Returns 14.7% on equity, ahead of 25% of its peers.
- Risk Stock trades 173.7% above its 5-year average P/E.
- Risk Net debt grew 157.0% over 3 years.
What this company does
Lenovo Group Limited
Lenovo is one of the world's largest makers of personal computers, selling the laptops and desktops used in many homes, schools, and offices. While most of its money comes from selling these devices, the company is also growing its business in powerful servers (computers for businesses) and IT services so it's less dependent on the ups and downs of the PC market.
How the company got here
Lenovo was founded in 1984 in Beijing by a group of eleven engineers with an initial investment of just $25,000. Originally named Legend, the company first focused on televisions before shifting to computers. A major turning point came in 2005 when Lenovo acquired IBM's personal computer business, which included the well-known ThinkPad laptop line. This purchase instantly gave the company a global footprint and a strong reputation in the business market, setting it on a path to become the world's largest PC vendor.
What it actually does
Lenovo is a global technology company that designs, manufactures, and sells a wide variety of electronics. Most people know them for their personal computers, such as the ThinkPad and Yoga laptops, but they also make Motorola smartphones, tablets, and computer accessories like monitors and chargers. Beyond devices for individuals, the company also provides powerful equipment and services for businesses, including servers (specialized computers that store data and run applications) and data storage solutions.
Intelligent Devices Group (IDG)
This is Lenovo's largest and most well-known business, responsible for the majority of its sales. It includes personal computers (PCs) for both consumers and businesses, tablets, and smartphones, including those under the Motorola brand. This segment also creates 'smart devices' like virtual reality headsets and smart home technology. When you buy a Lenovo laptop or a Motorola phone, you are buying from the Intelligent Devices Group.
Infrastructure Solutions Group (ISG)
This division is focused on providing the powerful hardware that businesses and other large organizations need to run their technology. This includes servers, which are high-powered computers that store and manage data for websites and company networks, and large-scale data storage systems. The ISG helps companies build and maintain their data centers and is increasingly focused on providing the infrastructure needed for artificial intelligence (AI). This is a smaller but important part of Lenovo's business that serves large enterprise customers.
Solutions and Services Group (SSG)
Think of this segment as Lenovo's IT support and consulting arm, a newer and fast-growing part of the company. Instead of just selling a piece of hardware, SSG offers a range of services to go with it, such as technical support, managed IT services (where Lenovo takes care of a company's tech needs), and consulting. This group allows customers to pay for technology as a service, often through subscriptions, rather than buying equipment outright.
What management is betting on now
Lenovo's current strategy is heavily focused on expanding beyond just selling hardware and growing its service-based businesses. The company is making a big push into artificial intelligence (AI), aiming to build AI capabilities into all its products, from laptops to the powerful servers that train AI models. Management refers to this as its "AI for All" strategy, investing heavily to help businesses adopt AI and to create personal AI assistants for its devices. This move into AI and services is designed to create more consistent, long-term revenue (money a company receives from its business activities) beyond the one-time sale of a device.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $77.75 vs current price $83.85
Wall Street consensus is the average analyst price target: $117.69 (51.4% higher than our fair-value estimate).
Our most-likely fair value is $77.75 a share — about 7.3% away from today's price of $83.85, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $548.7M. Interest coverage 4.8x.
Net debt
$548.75M
Interest coverage
4.77x
Lenovo Group Limited's profit covers its interest bill about 4.8 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LNVGY
BASELINE
Lenovo Group Limited
Total debt $6.67B Interest coverage 4.77x This is the baseline the peer rows are being compared against.
Total debt $10.34B Interest coverage 6.53x +37% vs LNVGY Carries about 1.4x more debt cushion than LNVGY.
Total debt $34.47B Interest coverage 5.41x +13% vs LNVGY Has roughly the same debt cushion as LNVGY.
Total debt $20.32B Interest coverage 14.05x +195% vs LNVGY Carries about 2.9x more debt cushion than LNVGY.
Total debt $9.26B Interest coverage 14.24x +198% vs LNVGY Carries about 3.0x more debt cushion than LNVGY.
Total debt $2.53B Interest coverage 15.55x +226% vs LNVGY Carries about 3.3x more debt cushion than LNVGY.
What you should know
The case for and against LNVGY
3 Rewards
3 Risks
Rewards
-
Revenue grew 20.3% last year.
-
Returns 14.7% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 173.7% above its 5-year average P/E.
-
Net debt grew 157.0% over 3 years.
-
Operating margin compressed from 4.3% to 0.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.16x
Forward P/E
9.70x
P/B
7.81x
P/S
0.57x
EV/EBITDA
13.79x
PEG ratio
0.86x
Profitability
How much profit each dollar creates
Gross margin
15.9%
Operating margin
0.1%
Net margin
0.9%
ROE
14.7%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.82x
Current ratio
0.98x
Quick ratio
0.64x
Total debt
$6.67B
Total cash
$6.12B
Growth
How the business has been compounding
Revenue TTM
$91.19B
Revenue 5Y CAGR
10.3%
EPS TTM
2.78
EPS 5Y CAGR
3.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.02B
Free CF TTM
$2.16B
FCF margin
2.4%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
35.8%
Last ex-div date
2026-08-06