Headwaters Co. Ltd. (4011) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toyokumo, Inc.

yappli, inc.

jig.jp Co., Ltd.

Ubicom Holdings, Inc.

UNIRITA, Inc.

Headwaters Co. Ltd.

ENIGMO, Inc.

eSOL Co., Ltd.

Gunosy, Inc.

Veltra Corp. (Japan)

Neural Group, Inc.

Why is Headwaters Co. Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 35.08% and Operating profit at 25.84%

With a growth in Net Sales of 5.38%, the company declared Very Positive results in Mar 26

NET PROFIT(HY) At JPY 38.24 MM has Grown at 13,276.97%
NET SALES(Q) Highest at JPY 1,262.4 MM
OPERATING PROFIT(Q) Highest at JPY 148.49 MM

With ROE of 9.31%, it has a very expensive valuation with a 7.01 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -52.35%, its profits have fallen by -46.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -52.35% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How 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.

-52.35%

-1.20

55.27%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.08%

EBIT Growth (5y)

25.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

2.03

Tax Ratio

27.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

602.63%

ROE (avg)

8.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.01

EV to EBIT

46.22

EV to EBITDA

41.28

EV to Capital Employed

4.07

EV to Sales

2.72

PEG Ratio

Dividend Yield

ROCE (Latest)

8.80%

ROE (Latest)

9.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

NET PROFIT(HY)

At JPY 38.24 MM has Grown at 13,276.97%

NET SALES(Q)

Highest at JPY 1,262.4 MM

OPERATING PROFIT(Q)

Highest at JPY 148.49 MM

RAW MATERIAL COST(Y)

Fallen by -11.7% (YoY

PRE-TAX PROFIT(Q)

At JPY 73.24 MM has Grown at 56.64%

-11What is not working for the Company

ROCE(HY)

Lowest at 6.96%

INTEREST(Q)

Highest at JPY 8.83 MM

Here's what is working for Headwaters Co. Ltd.

Net Profit

At JPY 38.24 MM has Grown at 13,276.97%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 1,262.4 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 1,262.4 MM has Grown at 29.48%

over average net sales of the previous four periods of JPY 975.01 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 148.49 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Pre-Tax Profit

At JPY 73.24 MM has Grown at 56.64%

over average net sales of the previous four periods of JPY 46.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -11.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 13.19 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 13.19 MM has Grown at 43.07%

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 8.83 MM has Grown at 16.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 8.83 MM

in the last five periods and Increased by 16.22% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)