Headwaters CoTSE:4011 -3.26%76 Net Margin % is 1.02% as of Dec. 2025, which is 78% below its 10-year median of 4.71. 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. Among 2,827 Software companies, Headwaters Co ranks worse than 51.79% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Headwaters Co's Net Income for the
three
months ended in Dec. 2025 was 円12 Mil. Headwaters Co's Revenue for the
three
months ended in Dec. 2025 was 円1,198 Mil. Therefore, Headwaters Co's net margin for the quarter that ended in Dec. 2025 was 1.02%.
The historical rank and industry rank for Headwaters Co's Net Margin % or its related term are showing as below:
TSE:4011'
s Net Margin % Range Over the Past 10 Years
Min: 1.48 Med: 4.71 Max: 13.28
Current: 2.05
TSE:4011's Net Margin % is ranked worse than 51.79% of 2827
companies
in the Software industry
Industry Median: 2.54
vs TSE:4011: 2.05
Headwaters Co (TSE:4011) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Headwaters Co Net Margin % Related Terms
Headwaters Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Headwaters Co's Net Margin % 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.
TSE:4011 vs CRM, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, Headwaters Co's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Headwaters Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Headwaters Co's Net Margin % falls into.
* 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 Net Margin % of 1.02% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Headwaters Co and its competitors. This is 78% below median its historical median of 4.71. Over the past decade, Headwaters Co's Net Margin % has ranged from 1.48 to 13.28. According to the industry distribution chart, Headwaters Co ranks #1464 out of 2827 companies in the Software industry, placing it in the top 51.8%.
Is Headwaters Co's Net Margin % too high?
Headwaters Co's current Net Margin % of 1.02% is 78% below median its 10-year median of 4.71. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 13.28. The Software industry median Net Margin % is 2.54. Headwaters Co's value of 1.02% is 59.8% below this industry median. Based on the distribution chart, Headwaters Co ranks #1464 out of 2827 companies in the Software industry, which is below the industry midpoint. 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 Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #1464 out of 2827 companies for Net Margin %. This places Headwaters Co in the lower half of its industry. The industry median Net Margin % is 2.54. Headwaters Co's value of 1.02% is 59.8% below this benchmark. Historically, Headwaters Co's own Net Margin % has ranged from 1.48 to 13.28 over the past decade. While the company's 10-year median is 4.71 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current Net Margin % of 1.02% is 59.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Headwaters Co and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current Net Margin % is 1.02%, which is 78% below median its own 10-year median of 4.71. 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 Net Margin % is 1.02%, which is 78% below median its 10-year median of 4.71 and 59.8% below the Software industry median of 2.54. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current Net Margin % is 1.02% 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:
Net Margin %: 1.02% (78% below median its 10-year median of 4.71)
GF Value™: 円8,007.98 vs. price of 円1,956.00 (75.6% below fair value)
Industry Position: 59.8% below the Software median (#1464 of 2827)
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.
76GF Score
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