Lenovo Group Ltd. (992) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PAX Global Technology Ltd.

Lenovo Group Ltd.

Readboy Education Holding Co., Ltd.

Ju Teng International Holdings Ltd.

Why is Lenovo Group Ltd. ?

High Management Efficiency with a high ROE of 27.50%

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 27.50%

Poor long term growth as Net Sales has grown by an annual rate of 7.03% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PAT(HY) At HKD 4,727.66 MM has Grown at -36.97 %
OPERATING CF(Y) Lowest at HKD 22,958.97 MM
NET SALES(9M) At HKD 336,715.19 MM has Grown at -12.90 %

With ROE of 23.26%, it has a Fair valuation with a 2.57 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.74%, its profits have risen by 63.1% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 3.74% in the last 1 year, much lower than market (Hang Seng Hong Kong) returns of 26.67%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lenovo Group Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lenovo Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lenovo Group Ltd.

2.21%

25.51

49.64%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.03%

EBIT Growth (5y)

8.70%

EBIT to Interest (avg)

5.09

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

7.35

Tax Ratio

1.30%

Dividend Payout Ratio

44.29%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

48.70%

ROE (avg)

27.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.57

EV to EBIT

7.26

EV to EBITDA

4.58

EV to Capital Employed

2.59

EV to Sales

0.24

PEG Ratio

0.18

Dividend Yield

0.35%

ROCE (Latest)

35.63%

ROE (Latest)

23.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Lenovo Group Ltd.

Net Sales - Quarterly

Highest at HKD 122,847 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At HKD 3,282 MM has Grown at 31.1 %

over average PBT of the previous four periods of HKD 2,504 MM

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (HKD MM)

Profit After Tax (PAT) - Quarterly

At HKD 2,786 MM has Grown at 63.1 %

over average PAT of the previous four periods of HKD 1,708 MM

MOJO Watch

Near term PAT trend is positive

PAT (HKD MM)

Here's what is not working for Lenovo Group Ltd.

Operating Cash Flow - Annually

Lowest at HKD 22,958.97 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Cash and Cash Equivalents - Half Yearly

Lowest at HKD 27,065.74 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents (HKD MM)

Debtors Turnover Ratio- Half Yearly

Lowest at 6.24 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at HKD 220 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income (HKD MM)