Lenovo GroupMEX:992N 44 Gross Margin % is 16.39% as of Mar. 2026, which is 2% above its 10-year median of 16.08. GuruFocus rates MEX:992N with a GF Score™ of 44/100 and a GF Value™ of MXN25.21 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,454 Hardware companies, Lenovo Group ranks worse than 72.9% on this metric.
The historical rank and industry rank for Lenovo Group's Gross Margin % or its related term are showing as below:
MEX:992N'
s Gross Margin % Range Over the Past 10 Years
Min: 13.83 Med: 16.08 Max: 17.24
Current: 15.42
During the past 13 years, the highestGross Margin % of Lenovo Group was 17.24%. The lowest was 13.83%. And the median was 16.08%.
MEX:992N's Gross Margin % is ranked worse than 72.9% of 2454
companies
in the Hardware industry
Industry Median: 24.565
vs MEX:992N: 15.42
Lenovo Group had a gross margin of 16.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lenovo Group was -0.90% per year.
Lenovo Group (MEX:992N) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lenovo Group had a gross margin of 16.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lenovo Group Gross Margin % Related Terms
Lenovo Group Gross Margin % Historical Data
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The historical data trend for Lenovo Group's Gross Margin % 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.
MEX:992N vs SNDK, DELL, STX: Gross Margin % Comparison
For the Computer Hardware subindustry, Lenovo Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Lenovo Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lenovo Group's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lenovo Group (MEX:992N) has a Gross Margin % of 16.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lenovo Group and its competitors. This is near median its historical median of 16.08. Over the past decade, Lenovo Group's Gross Margin % has ranged from 13.83 to 17.24. According to the industry distribution chart, Lenovo Group ranks #1789 out of 2454 companies in the Hardware industry, placing it in the top 72.9%.
Is Lenovo Group's Gross Margin % too high?
Lenovo Group's current Gross Margin % of 16.39% is near median its 10-year median of 16.08. Over the past 10 years, this metric has ranged from a low of 13.83 to a high of 17.24. The Hardware industry median Gross Margin % is 24.57. Lenovo Group's value of 16.39% is 33.3% below this industry median. Based on the distribution chart, Lenovo Group ranks #1789 out of 2454 companies in the Hardware industry, which is below the industry midpoint. Overall, Lenovo Group has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lenovo Group's Gross Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Lenovo Group ranks #1789 out of 2454 companies for Gross Margin %. This places Lenovo Group in the lower half of its industry. The industry median Gross Margin % is 24.57. Lenovo Group's value of 16.39% is 33.3% below this benchmark. Historically, Lenovo Group's own Gross Margin % has ranged from 13.83 to 17.24 over the past decade. While the company's 10-year median is 16.08 vs. the industry median of 24.57, Lenovo Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lenovo Group's current Gross Margin % of 16.39% is 33.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lenovo Group and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lenovo Group's current Gross Margin % is 16.39%, which is near median its own 10-year median of 16.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lenovo Group stock overvalued right now?
Based on GuruFocus' analysis, Lenovo Group (MEX:992N) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN25.21, compared to a current price of MXN50.86 — trading 101.7% above its estimated fair value. The current Gross Margin % is 16.39%, which is near median its 10-year median of 16.08 and 33.3% below the Hardware industry median of 24.57. Lenovo Group's overall GF Score™ is 44/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lenovo Group (MEX:992N), the current Gross Margin % is 16.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lenovo Group (MEX:992N) Overvalued in 2026?
Based on GuruFocus' analysis, Lenovo Group stock appears to be overvalued.
The current stock price of MXN50.86 is trading 101.7% above its estimated GF Value™ of MXN25.21.
GuruFocus considers Lenovo Group to be Significantly Overvalued.
Key valuation signals for MEX:992N:
Gross Margin %: 16.39% (near median its 10-year median of 16.08)
GF Value™: MXN25.21 vs. price of MXN50.86 (101.7% above fair value)
Industry Position: 33.3% below the Hardware median (#1789 of 2454)
No single metric tells the full story. See the MEX:992N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lenovo is a global technology hardware company with a leading market share in personal computers. 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 23% of overall sales in fiscal 2025, from 6% in 2015.
44GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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