Lenovo Group Ltd

Summary (from latest annual report – 2015)

• Total equity  : 4.08 billion USD
• Market Cap is 10.5 billion USD ( last price of the stock is 0.95 USD)
• Lenovo Group Ltd and its subsidiaries develops, manufactures and market reliable and easy-to-use technology products and services
• Equity of total company increased from 3.01 billion USD in 2014 to 4.08 billion in 2015
• Company has 2.85 billion USD in cash on account (from latest annual report  2015 year)
• Total equity – cash on account = 4.08 billion usd – 2.85 billion usd = 1.23 billion usd
• In 2015 company has 1.88 billion usd long-term debt, short – term debt is 1.33 billion usd (In 2014 company had 10 million usd long-term debt , short-term debt was 554 million usd)
• Lenovo  balance sheet has become stronger  in 2015 (In latest annual report - total equity increased to 4.08 billion  USD from 3.01 in 2014, but total debt increased for  2.65 billion usd in 2015 to 3.21 billion usd)
• Company's revenue increased in 2015 to 46.29 billion usd from 38.70 billion in 2014
• Net income decreased in 2015 to -261 million USD from 837 million usd in 2014
• In 2015 company paid 327 million usd dividend to its shareholders
• Lenovo stock currently has a dividend yield of 3.5%

Opinion about the company

Fundamentally it is a not good company  (Total debt  is a very large (3.21 billion usd), company operates with net loss , ROE is negative :  around - 8 %).

Lenovo Group - subsidiaries and acquisitions

Lenovo Group Ltd and its subsidiaries develops, manufactures and market reliable and easy-to-use technology products and services. Its products include Think-branded commercial personal computers and Idea-branded consumer personal computers

• In 2005 Lenovo  acquired IBM's personal computer business for 1.25 billion usd
• Lenovo owns a 51% stake in NEC worth 175 million USD
• In 2011 Lenovo completed the acquisition of Medion AG Germany, Lenovo owns a 79.82% stake in Medion worth 100 million USD
• In 2012 Lenovo completed the acquisition of Digibras for 148 million usd
• In 2012 Lenovo completed the acquisition of Stoneware, Lenovo owns a 100% stake in Stoneware worth 861,341 USD - While financial terms of the deal were not disclosed, the acquisition is not material to Lenovo’s earnings. Stoneware has 67 employees, located in either Indiana or Salt Lake City, Utah
• In 2014 Lenovo completed the acquisition of Motorola for 2.9 billion usd
• In 2014 Lenovo completed the acquisition of IBM System x and IBM BladeCenter  for 2.1 billion usd

Total = 6.67 billion usd