ScoreWhy is Headwaters Co. Ltd. ?
1
Positive results in Jun 26
- NET PROFIT(HY) At JPY 45.76 MM has Grown at 136.78%
- INVENTORY TURNOVER RATIO(HY) Highest at 218.84 times
- NET SALES(Q) Highest at JPY 2,089.09 MM
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -37.62%, its profits have risen by 284% ; the PEG ratio of the company is 0.2
3
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 45.04% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -37.62% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Headwaters Co. Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Headwaters Co. Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Headwaters Co. Ltd.
-37.62%
-0.98
60.12%
Japan Nikkei 225
45.04%
1.53
29.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
38.66%
EBIT Growth (5y)
61.42%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.45
Net Debt to Equity (avg)
-0.62
Sales to Capital Employed (avg)
2.03
Tax Ratio
39.70%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
485.73%
ROE (avg)
8.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
55
Industry P/E
Price to Book Value
9.29
EV to EBIT
31.19
EV to EBITDA
28.83
EV to Capital Employed
5.66
EV to Sales
3.05
PEG Ratio
0.20
Dividend Yield
NA
ROCE (Latest)
18.15%
ROE (Latest)
16.95%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
NET PROFIT(HY)
At JPY 45.76 MM has Grown at 136.78%
INVENTORY TURNOVER RATIO(HY)
Highest at 218.84 times
NET SALES(Q)
Highest at JPY 2,089.09 MM
OPERATING PROFIT(Q)
Highest at JPY 221.3 MM
CASH AND EQV(HY)
Highest at JPY 2,702.95 MM
-15What is not working for the Company
ROCE(HY)
Lowest at -2.23%
NET PROFIT(Q)
At JPY 26.8 MM has Fallen at -51.82%
INTEREST(Q)
Highest at JPY 12.54 MM
EPS(Q)
Lowest at JPY -44.9
Here's what is working for Headwaters Co. Ltd.
Net Sales
At JPY 2,089.09 MM has Grown at 88.92%
over average net sales of the previous four periods of JPY 1,105.81 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 2,089.09 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 221.3 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (JPY MM)
Inventory Turnover Ratio
Highest at 218.84 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Cash and Eqv
Highest at JPY 2,702.95 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 84.79 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 84.79 MM has Grown at 542.81%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Headwaters Co. Ltd.
Interest
At JPY 12.54 MM has Grown at 42.1%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 26.8 MM has Fallen at -51.82%
over average net sales of the previous four periods of JPY 55.62 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
Highest at JPY 12.54 MM
in the last five periods and Increased by 42.1% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
EPS
Lowest at JPY -44.9
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
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