Headwaters CoTSE:4011 +5.01%76 ROA % is 1.29% as of Dec. 2025, which is 84% below its 10-year median of 8.04. 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 2,881 Software companies, Headwaters Co ranks better than 56.99% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Headwaters Co's annualizedNet Income for the quarter that ended in Dec. 2025 was 円49 Mil.
Headwaters Co's average Total Assets over the quarter that ended in Dec. 2025 was 円3,789 Mil. Therefore, Headwaters Co's annualized ROA % for the quarter that ended in Dec. 2025 was 1.29%.
The historical rank and industry rank for Headwaters Co's ROA % or its related term are showing as below:
TSE:4011'
s ROA % Range Over the Past 10 Years
Min: 2.04 Med: 8.04 Max: 20.45
Current: 3.04
During the past 8 years, Headwaters Co's highest ROA % was 20.45%. The lowest was 2.04%. And the median was 8.04%.
TSE:4011's ROA % is ranked better than 56.99% of 2881
companies
in the Software industry
Industry Median: 1.65
vs TSE:4011: 3.04
Headwaters Co (TSE:4011) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Headwaters Co ROA % Related Terms
Headwaters Co ROA % Historical Data
* Premium members only.
The historical data trend for Headwaters Co's ROA % 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.
For the Software - Application subindustry, Headwaters Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Headwaters Co's ROA % distribution charts can be found below:
* The bar in red indicates where Headwaters Co's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Headwaters Co (TSE:4011) has a ROA % of 1.29% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Headwaters Co and its competitors. This is 84% below median its historical median of 8.04. Over the past decade, Headwaters Co's ROA % has ranged from 2.04 to 20.45. According to the industry distribution chart, Headwaters Co ranks #1239 out of 2881 companies in the Software industry, placing it in the top 43%.
Is Headwaters Co's ROA % too high?
Headwaters Co's current ROA % of 1.29% is 84% below median its 10-year median of 8.04. Over the past 10 years, this metric has ranged from a low of 2.04 to a high of 20.45. The Software industry median ROA % is 1.65. Headwaters Co's value of 1.29% is 21.8% below this industry median. Based on the distribution chart, Headwaters Co ranks #1239 out of 2881 companies in the Software industry, which is above 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 ROA % compare to UBER and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #1239 out of 2881 companies for ROA %. This puts Headwaters Co in the upper half of its industry. The industry median ROA % is 1.65. Headwaters Co's value of 1.29% is 21.8% below this benchmark. Historically, Headwaters Co's own ROA % has ranged from 2.04 to 20.45 over the past decade. While the company's 10-year median is 8.04 vs. the industry median of 1.65, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,881 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current ROA % of 1.29% is 21.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Headwaters Co and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current ROA % is 1.29%, which is 84% below median its own 10-year median of 8.04. 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2,054.00 — trading 74.4% below its estimated fair value. The current ROA % is 1.29%, which is 84% below median its 10-year median of 8.04 and 21.8% below the Software industry median of 1.65. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current ROA % is 1.29% 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2,054.00 is trading 74.4% 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:
ROA %: 1.29% (84% below median its 10-year median of 8.04)
GF Value™: 円8,007.98 vs. price of 円2,054.00 (74.4% below fair value)
Industry Position: 21.8% below the Software median (#1239 of 2881)
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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