Headwaters CoTSE:4011 +2.88%77 Pretax Margin % is 4.78% as of Dec. 2025, which is 22% below its 10-year median of 6.15. GuruFocus rates TSE:4011 with a GF Score™ of 77/100 and a GF Value™ of 円8,039.98 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,817 Software companies, Headwaters Co ranks better than 51.65% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Headwaters Co's Pre-Tax Income for the
three
months ended in Dec. 2025 was 円57 Mil. Headwaters Co's Revenue for the
three
months ended in Dec. 2025 was 円1,198 Mil. Therefore, Headwaters Co's pretax margin for the quarter that ended in Dec. 2025 was 4.78%.
The historical rank and industry rank for Headwaters Co's Pretax Margin % or its related term are showing as below:
TSE:4011'
s Pretax Margin % Range Over the Past 10 Years
Min: 3.29 Med: 6.15 Max: 13.51
Current: 4.14
TSE:4011's Pretax Margin % is ranked better than 51.65% of 2817
companies
in the Software industry
Industry Median: 3.57
vs TSE:4011: 4.14
Headwaters Co (TSE:4011) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Headwaters Co Pretax Margin % Related Terms
Headwaters Co Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Headwaters Co's Pretax 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 UBER, SHOP, CRM: Pretax Margin % Comparison
For the Software - Application subindustry, Headwaters Co's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Headwaters Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Headwaters Co's Pretax 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 Pretax Margin % of 4.78% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Headwaters Co and its competitors. This is 22% below median its historical median of 6.15. Over the past decade, Headwaters Co's Pretax Margin % has ranged from 3.29 to 13.51. According to the industry distribution chart, Headwaters Co ranks #1362 out of 2817 companies in the Software industry, placing it in the top 48.3%.
Is Headwaters Co's Pretax Margin % too high?
Headwaters Co's current Pretax Margin % of 4.78% is 22% below median its 10-year median of 6.15. Over the past 10 years, this metric has ranged from a low of 3.29 to a high of 13.51. The Software industry median Pretax Margin % is 3.57. Headwaters Co's value of 4.78% is 33.9% above this industry median. Based on the distribution chart, Headwaters Co ranks #1362 out of 2817 companies in the Software industry, which is above 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 Pretax Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #1362 out of 2817 companies for Pretax Margin %. This puts Headwaters Co in the upper half of its industry. The industry median Pretax Margin % is 3.57. Headwaters Co's value of 4.78% is 33.9% above this benchmark. Historically, Headwaters Co's own Pretax Margin % has ranged from 3.29 to 13.51 over the past decade. While the company's 10-year median is 6.15 vs. the industry median of 3.57, Headwaters Co has consistently been above 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.57, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current Pretax Margin % of 4.78% is 33.9% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Headwaters Co and its competitors. For the Software industry, the median Pretax Margin % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current Pretax Margin % is 4.78%, which is 22% below median its own 10-year median of 6.15. 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8,039.98, compared to a current price of 円2,181.00 — trading 72.9% below its estimated fair value. The current Pretax Margin % is 4.78%, which is 22% below median its 10-year median of 6.15 and 33.9% above the Software industry median of 3.57. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current Pretax Margin % is 4.78% 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2,181.00 is trading 72.9% below its estimated GF Value™ of 円8,039.98.
GuruFocus considers Headwaters Co to be Possible Value Trap.
Key valuation signals for TSE:4011:
Pretax Margin %: 4.78% (22% below median its 10-year median of 6.15)
GF Value™: 円8,039.98 vs. price of 円2,181.00 (72.9% below fair value)
Industry Position: 33.9% above the Software median (#1362 of 2817)
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
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