Headwaters Co (TSE:4011) EBIT: 円267 Mil (TTM As of Dec. 2025)


TSE:4011 Headwaters Co Ltd TSE:4011
76 GF Score
Price 円1,956.00
GF Value 円8,007.98
Valuation Possible Value Trap
! 5 Warning Signs
View Full Analysis

What is Headwaters Co EBIT?

Headwaters Co TSE:4011 -3.26% 76 EBIT is 円267 Mil as of Dec. 2025. GuruFocus rates TSE:4011 with a GF Score™ of 76/100 and a GF Value™ of 円8,007.98 (Possible Value Trap). The stock has 5 warning signs investors should review.

Headwaters Co's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2025 was 円65 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was 円267 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Headwaters Co's annualized ROC % for the quarter that ended in Dec. 2025 was 3.42%. Headwaters Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 68.81%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Headwaters Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 2.05%.

Headwaters Co  (TSE:4011) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Headwaters Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=524.648 * ( 1 - 71.15% )/( (4447.75 + 4413.252)/ 2 )
=151.360948/4430.501
=3.42 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3727.358 - 303.283 - ( 567.144 - max(0, 2389.108 - 1365.433+567.144))
=4447.75

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3849.872 - 349.798 - ( 625.145 - max(0, 2493.782 - 1580.604+625.145))
=4413.252

Note: The Operating Income data used here is four times the quarterly (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Headwaters Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=259.552/( ( (40.64 + max(309.421, 0)) + (42.49 + max(361.877, 0)) )/ 2 )
=259.552/( ( 350.061 + 404.367 )/ 2 )
=259.552/377.214
=68.81 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(664.414 + 17.112 + 117.003) - (303.283 + 0 + 185.825)
=309.421

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(828.67 + 17.349 + 109.64) - (349.798 + 0 + 243.984)
=361.877

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Headwaters Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=267.203/13013.684
=2.05 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Headwaters Co EBIT Related Terms

Headwaters Co EBIT Historical Data

* Premium members only.

The historical data trend for Headwaters Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Headwaters Co EBIT Chart

Headwaters Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial 91.41 110.02 94.86 362.43 138.75

Headwaters Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -67.62 43.24 98.24 64.89 60.84

TSE:4011 vs CRM, SHOP, UBER: EBIT Comparison

For the Software - Application subindustry, Headwaters Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Headwaters Co EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Headwaters Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Headwaters Co's EV-to-EBIT falls into.


TSE:4011
76GF Score
Headwaters Co Ltd TSE:4011
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Headwaters Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was 円267 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円267 Mil mean?
Headwaters Co (TSE:4011) has a EBIT of 円267 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Headwaters Co.
Is Headwaters Co's EBIT too high?
Headwaters Co's current EBIT is 円267 Mil. Overall, Headwaters Co has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Headwaters Co's EBIT compare to CRM and SHOP?
Headwaters Co's EBIT of 円267 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Headwaters Co. Headwaters Co's current EBIT is 円267 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Headwaters Co stock overvalued right now?
Based on GuruFocus' analysis, Headwaters Co (TSE:4011) is currently considered Possible Value Trap. The stock's GF Value™ is 円8,007.98, compared to a current price of 円1,956.00 — trading 75.6% below its estimated fair value. The current EBIT is 円267 Mil. Headwaters Co's overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current EBIT is 円267 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Headwaters Co (TSE:4011) Overvalued in 2026?

Based on GuruFocus' analysis, Headwaters Co stock appears to be undervalued. The current stock price of 円1,956.00 is trading 75.6% below its estimated GF Value™ of 円8,007.98. GuruFocus considers Headwaters Co to be Possible Value Trap.

Key valuation signals for TSE:4011:

  • EBIT: 円267 Mil
  • GF Value™: 円8,007.98 vs. price of 円1,956.00 (75.6% below fair value)
  • GF Score™: 76/100 with 5 warning signs

No single metric tells the full story. See the TSE:4011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Headwaters Co Business Description

Address 6-5-1 Nishi-Shinjuku, Shinjuku-ku, 4th floor, Shinjuku Island Tower, Tokyo, JPN, 163-1304
Headwaters Co Ltd is engaged in the planning and development of artificial intelligence (AI) applications. It develops AI-related businesses such as AI platform operation, AI application development, robot application development, and cloud service operation. The group has a single segment, the AI solutions business.
76GF Score

Get the complete analysis for TSE:4011

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,956.00
Price
円8,007.98
GF Value