ScoreWhy is Headwaters Co. Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Healthy long term growth as Net Sales has grown by an annual rate of 34.89% and Operating profit at 19.28%
3
The company declared negative results in Mar'25 after very positive results in Dec'24
- ROCE(HY) Lowest at 4.48%
- NET PROFIT(Q) At JPY 19.91 MM has Fallen at -52.94%
- CASH AND EQV(HY) Lowest at JPY 1,192.29 MM
4
With ROE of 4.67%, it has a attractive valuation with a 9.80 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 -45.26%, its profits have fallen by -51.4%
5
Below par performance in long term as well as near term
- Along with generating -45.26% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
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.
-43.47%
-1.06
58.23%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
34.89%
EBIT Growth (5y)
19.28%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.62
Sales to Capital Employed (avg)
2.25
Tax Ratio
27.57%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
602.63%
ROE (avg)
8.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
210
Industry P/E
Price to Book Value
9.80
EV to EBIT
107.68
EV to EBITDA
89.33
EV to Capital Employed
24.04
EV to Sales
3.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
22.32%
ROE (Latest)
4.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -6.11% (YoY
NET PROFIT(9M)
Higher at JPY 188.85 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 203.46 times
NET SALES(Q)
Highest at JPY 1,197.99 MM
OPERATING PROFIT(Q)
Highest at JPY 140.38 MM
PRE-TAX PROFIT(Q)
At JPY 82.42 MM has Grown at 65.04%
-16What is not working for the Company
ROCE(HY)
Lowest at 4.48%
NET PROFIT(Q)
At JPY 19.91 MM has Fallen at -52.94%
CASH AND EQV(HY)
Lowest at JPY 1,192.29 MM
DEBT-EQUITY RATIO
(HY)
Highest at 95.84 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.61 times
INTEREST(Q)
Highest at JPY 7.59 MM
Here's what is working for Headwaters Co. Ltd.
Net Sales
At JPY 1,197.99 MM has Grown at 36.12%
over average net sales of the previous four periods of JPY 880.09 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 1,197.99 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 140.38 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
At JPY 82.42 MM has Grown at 65.04%
over average net sales of the previous four periods of JPY 49.94 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 203.46 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -6.11% (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 9.22 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 9.22 MM has Grown at 31.4%
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 7.59 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 19.91 MM has Fallen at -52.94%
over average net sales of the previous four periods of JPY 42.31 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
Highest at JPY 7.59 MM
in the last five periods and Increased by inf% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 1,192.29 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 95.84 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 5.61 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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