Headwaters CoTSE:4011 +4.95%77 Interest Coverage is 17.27 as of Dec. 2025, which is 100% below its 10-year median of 6,412.79. GuruFocus rates TSE:4011 with a GF Score™ of 77/100 and a GF Value™ of 円8,031.98 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,704 Software companies, Headwaters Co ranks worse than 51.88% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Headwaters Co's
Operating Income
for the
three
months ended in Dec. 2025 was 円131 Mil. Headwaters Co's Interest Expense for the
three
months ended in Dec. 2025 was 円-8 Mil.
Headwaters Co's interest coverage for the quarter that ended in Dec. 2025 was 17.27.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Headwaters Co's Interest Coverage or its related term are showing as below:
TSE:4011'
s Interest Coverage Range Over the Past 10 Years
Min: 22.2 Med: 6412.79 Max: No Debt
Current: 22.57
TSE:4011's Interest Coverage is ranked worse than 51.88% of 1704
companies
in the Software industry
Industry Median: 24.75
vs TSE:4011: 22.57
Headwaters Co (TSE:4011) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Headwaters Co Interest Coverage Related Terms
Headwaters Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Headwaters Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSE:4011 vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, Headwaters Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Headwaters Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Headwaters Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (TSE:4011) has a Interest Coverage of 17.27 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Headwaters Co and its competitors. This is 100% below median its historical median of 6,412.79. Over the past decade, Headwaters Co's Interest Coverage has ranged from 22.20 to 10,000.00. According to the industry distribution chart, Headwaters Co ranks #884 out of 1704 companies in the Software industry, placing it in the top 51.9%.
Is Headwaters Co's Interest Coverage too high?
Headwaters Co's current Interest Coverage of 17.27 is 100% below median its 10-year median of 6,412.79. Over the past 10 years, this metric has ranged from a low of 22.20 to a high of 10,000.00. The Software industry median Interest Coverage is 24.75. Headwaters Co's value of 17.27 is 30.2% below this industry median. Based on the distribution chart, Headwaters Co ranks #884 out of 1704 companies in the Software industry, which is below the industry midpoint. Overall, Headwaters Co has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Headwaters Co's Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #884 out of 1704 companies for Interest Coverage. This places Headwaters Co in the lower half of its industry. The industry median Interest Coverage is 24.75. Headwaters Co's value of 17.27 is 30.2% below this benchmark. Historically, Headwaters Co's own Interest Coverage has ranged from 22.20 to 10,000.00 over the past decade. While the company's 10-year median is 6,412.79 vs. the industry median of 24.75, Headwaters Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current Interest Coverage of 17.27 is 30.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Headwaters Co and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current Interest Coverage is 17.27, which is 100% below median its own 10-year median of 6,412.79. 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8,031.98, compared to a current price of 円2,120.00 — trading 73.6% below its estimated fair value. The current Interest Coverage is 17.27, which is 100% below median its 10-year median of 6,412.79 and 30.2% below the Software industry median of 24.75. Headwaters Co's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current Interest Coverage is 17.27 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2,120.00 is trading 73.6% below its estimated GF Value™ of 円8,031.98.
GuruFocus considers Headwaters Co to be Possible Value Trap.
Key valuation signals for TSE:4011:
Interest Coverage: 17.27 (100% below median its 10-year median of 6,412.79)
GF Value™: 円8,031.98 vs. price of 円2,120.00 (73.6% below fair value)
Industry Position: 30.2% below the Software median (#884 of 1704)
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 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.
77GF Score
Get the complete analysis for TSE:4011
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