That positive 2019 industry growth has been largely attributed to Microsoft ending support for their Windows 7 operating system, which drove consumers to new devices to run the more advanced Windows 10 operating system. However, at a firm level, Lenovo has been growing steadily in market share for years and their current market price does not appear to be reflective of that fact. According to data from Statista, in the first quarter of 2011 Lenovo had market share of 10.4% and by the fourth quarter of 2019 their market share rose to 24.8%.5 Meanwhile, from 3/31/2011 to 2/14/2020 Lenovo ADR shares have only rose from an adjusted price of $7.71 to $13.60 (a rise of 76%), while the SP500TR, a proxy for the S&P 500 total return index, rose from $2,239.44 to $6,872.68 (a rise of 207%).
Financially Lenovo has had mixed results, perhaps helping to explain the disconnect between the firm’s market share dominance and their stock performance. From 2015 to 2019 (their fiscal year ends in March) revenue rose from $46B to $51B (annualized growth of 2.5%). While profits have oscillated between positive and negative, in three out of the last five years the firm has reported positive net income, with the positive years significantly outweighing the years of losses. Furthermore, cash flow from operations has been positive in four out of the last five years. Lenovo has low margins compared to peers, but I believe that to be a characteristic of the strategic business strategy the firm is pursuing (high value at a low cost to attract and retain customers). Nonetheless, the latest quarterly report, 2019Q2 ending 9/30/2019, showcased a gross profit margin of 16.1% (up 2.7% YoY) and a profit margin of 1.5% (up 0.25% YoY), showcasing improved expense management on both the cost of goods sold and operating line items.
Pingback: cialis 20 coupon
Pingback: Buy Fluoxetine 20mg, 10mg Online - Best Price
Pingback: methotrexate buy canada
Pingback: neurontin 600mg
Pingback: cheapest zetia online
Pingback: generic etodolac
Pingback: buy lamictal canada
Pingback: buy metoclopramide
Pingback: exelon 1.5mg
Pingback: where can i buy risperdal
Pingback: how many benadryl pills does it take to overdose
Pingback: zanaflex 2mg
Pingback: legal requirements for emergency sale of ventolin
Pingback: buy colchicine in canada
Pingback: generic nitrofurantoin
Pingback: can you buy lamisil over the counter
Pingback: generic simvastatin
Pingback: phenytoin online
Pingback: diltiazem cream for sale
Pingback: diclofenac buy uk
Pingback: where can i buy meclizine over the counter
Pingback: naltrexone hydrochloride 2023
Pingback: actos generic
Pingback: prednisone online
Pingback: cheap amantadine
Pingback: requip buy online
Pingback: generic triamterene
Pingback: bentyl prices
Pingback: where to buy liquid arimidex
Pingback: buy dulcolax overnight relief laxative tablets
Pingback: where is the best place to buy synthroid
Pingback: buy elavil online no prescription
Pingback: diclofenac zetpillen
Pingback: buy trental
Pingback: generic furosemide
Pingback: buy brand name topamax online
Pingback: orlistat sale antidoping
Pingback: buy zyrtec australia
Pingback: buy generic coumadin
Pingback: ranitidine generic
Pingback: dexamethasone tablets
Pingback: nitroglycerin online
Pingback: lopressor 2023
Pingback: buy cefdinir online
Pingback: premarin where to buy
Pingback: reglan 2023
Pingback: buy motrin 2023
Pingback: where can i buy generic prevacid
Pingback: cheapest price claritin
Pingback: buy cozaar generic
Pingback: flonase online ordering
Pingback: methocarbamol generic
Pingback: prazosin 2023
Pingback: buy divalproex 2023
Pingback: buy tizanidine
Pingback: where to buy solu-medrol
Pingback: celebrex discount card pfizer
Pingback: buy pyridium plus
Pingback: imitrex injection cheap
Pingback: cheap prednisolone
Pingback: cheap hydrochlorothiazide
Pingback: clonidine sale
Pingback: how much allegra d can i buy
Pingback: cheap zyprexa
Pingback: buspar sale
Pingback: toradol price
Pingback: buy esomeprazole
Pingback: dramamine online
Pingback: codeine promethazine for sale
Pingback: carbamazepine prices
Pingback: haloperidol generic
Pingback: buy lisinopril 2023
Pingback: cheap hydroxyzine
Pingback: provera online
Pingback: albuterol online
Pingback: cheap clonidine online
Pingback: what are allegra pills for