Lenovo Profitability Analysis

LNVGF -  USA Stock  

USD 1.03  0.02  1.98%

For Lenovo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lenovo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lenovo Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lenovo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lenovo Group over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.

Lenovo Current Profitability Trends 

 
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Is Lenovo's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lenovo. If investors know Lenovo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lenovo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lenovo Group is measured differently than its book value, which is the value of Lenovo that is recorded on the company's balance sheet. Investors also form their own opinion of Lenovo's value that differs from its market value or its book value, called intrinsic value, which is Lenovo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lenovo's market value can be influenced by many factors that don't directly affect Lenovo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lenovo's value and its price as these two are different measures arrived at by different means. Investors typically determine Lenovo value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lenovo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Lenovo Group Earnings Per Share vs. Current Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lenovo's current stock value. Our valuation model uses many indicators to compare Lenovo value to that of its competitors to determine the firm's financial worth.
Lenovo Group is rated fourth overall in current asset category among related companies. It is rated below average in earnings per share category among related companies . The ratio of Current Asset to Earnings Per Share for Lenovo Group is about  194,076,923,077 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lenovo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lenovo's OTC Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lenovo's earnings, one of the primary drivers of an investment's value.

Lenovo Earnings Per Share vs. Current Asset

Current Asset is all of the company's assets that can be used to pay off current liabilities within the current fiscal period or over the next 12 months. Current Asset includes cash or cash equivalents, accounts receivable, short-term investments, and the portion of prepaid liabilities which will be paid within the next 12 months. Because these assets are easily turned into cash, they are sometimes referred to as liquid assets.
Lenovo 
Current Asset 
 = 
Cash 
Deposits 
Liquid Assets 
15.14 B
Current Asset is important to company's creditors and private equity firms as they will often be interested in how much that company has in current assets since these assets can be easily liquidated in case the company goes bankrupt. However, it is usually not enough to know if a company is in good shape just based on current asset alone; the amount of current liabilities should always be considered.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Lenovo 
Earnings per Share 
 = 
Earnings 
Average Shares 
0.08 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Lenovo Earnings Per Share Comparison

Lenovo is currently under evaluation in earnings per share category among related companies.

Lenovo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lenovo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lenovo will eventually generate negative long term returns. The profitability progress is the general direction of Lenovo's change in net profit over the period of time. It can combine multiple indicators of Lenovo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. Lenovo Group Limited was founded in 1984 and is based in Quarry Bay, Hong Kong. Lenovo is traded on OTC Exchange in the United States.

Lenovo Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lenovo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lenovo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lenovo's important profitability drivers and their relationship over time.

Use Lenovo in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lenovo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lenovo will appreciate offsetting losses from the drop in the long position's value.

Lenovo Pair Trading

Lenovo Group Pair Trading Analysis

Correlation analysis and pair trading evaluation for Lenovo and Dell Technologies. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your Lenovo position

In addition to having Lenovo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Recreation Theme
Companies involved in production and services of recreational goods, foods, and accessories. Recreation theme has 27 constituents.
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Additionally, see Stocks Correlation. Note that the Lenovo Group information on this page should be used as a complementary analysis to other Lenovo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running Lenovo Group price analysis, check to measure Lenovo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lenovo is operating at the current time. Most of Lenovo's value examination focuses on studying past and present price action to predict the probability of Lenovo's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lenovo's price. Additionally, you may evaluate how the addition of Lenovo to your portfolios can decrease your overall portfolio volatility.
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To fully project Lenovo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lenovo Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lenovo's income statement, its balance sheet, and the statement of cash flows.
Potential Lenovo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lenovo investors may work on each financial statement separately, they are all related. The changes in Lenovo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lenovo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.