Lenovo Group (Germany) Buy Hold or Sell Recommendation

LHL1 Stock  EUR 22.40  0.40  1.75%   
Assuming the 90 days trading horizon and your typical level of risk aversion, our recommendation regarding Lenovo Group Limited is 'Strong Sell'. Macroaxis provides Lenovo Group buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LHL1 positions.
  
Check out Lenovo Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Lenovo and provide practical buy, sell, or hold advice based on investors' constraints. Lenovo Group Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Lenovo Group Buy or Sell Advice

The Lenovo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lenovo Group Limited. Macroaxis does not own or have any residual interests in Lenovo Group Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lenovo Group's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Lenovo GroupBuy Lenovo Group
Strong Sell

Market Performance

InsignificantDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Lenovo Group Limited has a Mean Deviation of 2.18, Semi Deviation of 2.4, Standard Deviation of 2.78, Variance of 7.7, Downside Variance of 8.05 and Semi Variance of 5.78
Our advice module complements current analysts and expert consensus on Lenovo Group Limited. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure Lenovo Group Limited is not overpriced, please verify all Lenovo Group Limited fundamentals, including its price to sales, gross profit, and the relationship between the price to book and revenue .

Lenovo Group Trading Alerts and Improvement Suggestions

Lenovo Group Limited has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
Lenovo Group Limited has accumulated 2.63 B in total debt with debt to equity ratio (D/E) of 106.9, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Lenovo Group Limited has a current ratio of 0.8, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Lenovo Group until it has trouble settling it off, either with new capital or with free cash flow. So, Lenovo Group's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Lenovo Group Limited sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Lenovo to invest in growth at high rates of return. When we think about Lenovo Group's use of debt, we should always consider it together with cash and equity.

Lenovo Group Returns Distribution Density

The distribution of Lenovo Group's historical returns is an attempt to chart the uncertainty of Lenovo Group's future price movements. The chart of the probability distribution of Lenovo Group daily returns describes the distribution of returns around its average expected value. We use Lenovo Group Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lenovo Group returns is essential to provide solid investment advice for Lenovo Group.
Mean Return
0.15
Value At Risk
-4.27
Potential Upside
4.59
Standard Deviation
2.78
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lenovo Group historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Lenovo Group Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lenovo Group or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lenovo Group's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lenovo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.08
β
Beta against Dow Jones0.44
σ
Overall volatility
2.74
Ir
Information ratio 0

Lenovo Group Volatility Alert

Lenovo Group Limited currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.08. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lenovo Group's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lenovo Group's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Lenovo Group Fundamentals Vs Peers

Comparing Lenovo Group's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lenovo Group's direct or indirect competition across all of the common fundamentals between Lenovo Group and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lenovo Group or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lenovo Group's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lenovo Group by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Lenovo Group to competition
FundamentalsLenovo GroupPeer Average
Return On Equity0.38-0.31
Return On Asset0.044-0.14
Profit Margin0.03 %(1.27) %
Operating Margin0.05 %(5.51) %
Current Valuation8.47 B16.62 B
Shares Outstanding606.41 M571.82 M
Shares Owned By Institutions0.11 %39.21 %
Price To Earning14.27 X28.72 X
Price To Book1.83 X9.51 X
Price To Sales0.13 X11.42 X
Revenue71.62 B9.43 B
Gross Profit12.05 B27.38 B
EBITDA4.29 B3.9 B
Net Income2.03 B570.98 M
Cash And Equivalents2.68 B2.7 B
Cash Per Share4.46 X5.01 X
Total Debt2.63 B5.32 B
Debt To Equity106.90 %48.70 %
Current Ratio0.82 X2.16 X
Book Value Per Share7.88 X1.93 K
Cash Flow From Operations4.08 B971.22 M
Earnings Per Share3.11 X3.12 X
Price To Earnings To Growth1.12 X4.89 X
Target Price33.45
Number Of Employees82 K18.84 K
Beta1.14-0.15
Market Capitalization10.53 B19.03 B
Total Asset44.51 B29.47 B
Z Score2.88.72
Annual Yield0.06 %
Five Year Return4.52 %
Net Asset44.51 B
Last Dividend Paid0.049

Lenovo Group Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lenovo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Lenovo Group Buy or Sell Advice

When is the right time to buy or sell Lenovo Group Limited? Buying financial instruments such as Lenovo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Other Information on Investing in Lenovo Stock

Lenovo Group financial ratios help investors to determine whether Lenovo Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Lenovo with respect to the benefits of owning Lenovo Group security.