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Lenovo Group (HKSE:00992) Piotroski F-Score : 5 (As of Apr. 26, 2024)


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What is Lenovo Group Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lenovo Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Lenovo Group's Piotroski F-Score or its related term are showing as below:

HKSE:00992' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Lenovo Group was 9. The lowest was 1. And the median was 6.


Lenovo Group Piotroski F-Score Historical Data

The historical data trend for Lenovo Group's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lenovo Group Piotroski F-Score Chart

Lenovo Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.00 6.00 6.00 9.00 5.00

Lenovo Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 5.00 5.00 5.00

Competitive Comparison of Lenovo Group's Piotroski F-Score

For the Computer Hardware subindustry, Lenovo Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lenovo Group's Piotroski F-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Lenovo Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lenovo Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 891.667 + 1382.728 + 1951.175 + 2632.028 = HK$6,858 Mil.
Cash Flow from Operations was 1917.963 + 5089.578 + 3552.495 + 2844.095 = HK$13,404 Mil.
Revenue was 99169.054 + 101045.128 + 112807.01 + 122777.507 = HK$435,799 Mil.
Gross Profit was 16822.684 + 17639.172 + 19741.598 + 20316.343 = HK$74,520 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(325029.878 + 305471.851 + 297061.582 + 307320.708 + 308520.971) / 5 = HK$308680.998 Mil.
Total Assets at the begining of this year (Dec22) was HK$325,030 Mil.
Long-Term Debt & Capital Lease Obligation was HK$29,886 Mil.
Total Current Assets was HK$181,405 Mil.
Total Current Liabilities was HK$208,527 Mil.
Net Income was 3224.269 + 4047.32 + 4248.15 + 3403.785 = HK$14,924 Mil.

Revenue was 130591.93 + 133069.386 + 134142.612 + 118856.634 = HK$516,661 Mil.
Gross Profit was 22406.541 + 22515.422 + 22579.38 + 20337.372 = HK$87,839 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(355994.737 + 348196.301 + 347266.637 + 339827.897 + 325029.878) / 5 = HK$343263.09 Mil.
Total Assets at the begining of last year (Dec21) was HK$355,995 Mil.
Long-Term Debt & Capital Lease Obligation was HK$32,549 Mil.
Total Current Assets was HK$203,448 Mil.
Total Current Liabilities was HK$225,132 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lenovo Group's current Net Income (TTM) was 6,858. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lenovo Group's current Cash Flow from Operations (TTM) was 13,404. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=6857.598/325029.878
=0.02109836

ROA (Last Year)=Net Income/Total Assets (Dec21)
=14923.524/355994.737
=0.04192063

Lenovo Group's return on assets of this year was 0.02109836. Lenovo Group's return on assets of last year was 0.04192063. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lenovo Group's current Net Income (TTM) was 6,858. Lenovo Group's current Cash Flow from Operations (TTM) was 13,404. ==> 13,404 > 6,858 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=29886.004/308680.998
=0.09681841

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=32548.655/343263.09
=0.09482131

Lenovo Group's gearing of this year was 0.09681841. Lenovo Group's gearing of last year was 0.09482131. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=181404.722/208526.838
=0.86993465

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=203448.26/225132.226
=0.90368342

Lenovo Group's current ratio of this year was 0.86993465. Lenovo Group's current ratio of last year was 0.90368342. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lenovo Group's number of shares in issue this year was 13058.484. Lenovo Group's number of shares in issue last year was 13068.295. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=74519.797/435798.699
=0.17099591

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=87838.715/516660.562
=0.17001242

Lenovo Group's gross margin of this year was 0.17099591. Lenovo Group's gross margin of last year was 0.17001242. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=435798.699/325029.878
=1.34079581

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=516660.562/355994.737
=1.45131517

Lenovo Group's asset turnover of this year was 1.34079581. Lenovo Group's asset turnover of last year was 1.45131517. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+1+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lenovo Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Lenovo Group  (HKSE:00992) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lenovo Group Piotroski F-Score Related Terms

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Lenovo Group (HKSE:00992) Business Description

Traded in Other Exchanges
Address
979 King's Road, 23rd Floor, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong, HKG
Lenovo is a global technology hardware company with a leading market share in personal computers. Its operations are divided into three main business segments: PC and smart devices, mobile, and data center, which we expect to account for 55%, 11%, and 19% of sales in the midterm, respectively. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 16% of overall sales in fiscal 2022, from 6% in 2015.

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