Hong Kong · HKEX · 00992
Lenovo (00992) stock analysis: valuation and financials
资讯科技器材
HK$31.10 -3.8% Price as of Oct 13, 2026
Scale PC/server leader: strong cash conversion, near-zero net debt, 34.9% ROIC, but 15.4% gross margin and 62.5x P/E need margin normalisation to justify the price.
- Market cap
- HK$398.9B
- P/E
- 62.5x
- EV/Sales
- 0.6x
- FCF yield
- 4.1%
- Dividend yield
- 1.3%
- 52-week range
- HK$8.64 – HK$37.58
Research as of Oct 14, 2026
Business quality scorecard
- Growth64
- Profitability36
- Cash flow55
- Balance sheet42
- Capital allocation57
- Innovation17
- Valuation42
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Consumers and enterprises across 180 markets buy smart devices (IDG), servers and edge infrastructure (ISG) and IT services (SSG); devices supply the revenue base while services and infrastructure are the profit engine, with FY2026 group operating margin of 3.93%.
Financials by year
| FY2022Apr 2021–Mar 2022 | FY2023Apr 2022–Mar 2023 | FY2024Apr 2023–Mar 2024 | FY2025Apr 2024–Mar 2025 | FY2026Apr 2025–Mar 2026 | |
|---|---|---|---|---|---|
| Revenue | ¥454.6B | ¥425.7B | ¥403.4B | ¥495.8B | ¥574.8B |
| Revenue growth | +13.9% | -6.4% | -5.2% | +22.9% | +15.9% |
| Gross margin | 16.8% | 17.0% | 17.2% | 16.1% | 15.4% |
| Operating margin | 4.3% | 4.3% | 3.5% | 3.1% | 3.9% |
| Net income | ¥12.9B | ¥11.0B | ¥7.2B | ¥9.9B | ¥13.2B |
| Free cash flow | ¥21.6B | ¥13.1B | ¥8.4B | ¥1.9B | ¥19.2B |
| FCF margin | 4.7% | 3.1% | 2.1% | 0.4% | 3.3% |
Amounts in CNY · What is free cash flow?
Margins FY2026 gross margin fell 65bp to 15.42% on unfavourable mix; operating margin rose 79bp to 3.93% on opex leverage. Quarterly gross margin recovered to 16.5% by Q1 FY2027, but that quarter's operating margin collapsed to 0.07% on an undisclosed charge.
- Cash flow WatchFY2026 operating cash flow CNY27.84B vs net income CNY13.23B (cash conversion 1.65x); TTM OCF CNY21.72B vs TTM net income CNY5.47B. Share-based compensation not disclosed.
- Debt LowNet debt only CNY2.31B, net debt/EBITDA 0.086x; TTM cash CNY40.24B against total debt CNY43.72B, so leverage is minimal.
Balance sheet Leverage · Low
- Cash & short-term investments
- ¥41.4B
- Total debt
- ¥43.7B
- Net debt
- ¥2.3B
- Net debt / EBITDA
- 0.1x
- Interest coverage
- 3.5x
- Current ratio
- 1.0x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management AdequateExecution solid: FY2026 revenue CNY574.8B (+15.9%), net income CNY13.23B, EPS +26.3% yoy; trailing ROIC 34.9%, net debt/EBITDA 0.09x.
Valuation range
Implied value per share · Price when researched: HK$31.10
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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