Headwaters Co (TSE:4011) ROCE %: 19.27% (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
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What is Headwaters Co ROCE %?

Headwaters Co TSE:4011 -3.26% 76 ROCE % is 19.27% 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Headwaters Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 19.27%.

Headwaters Co  (TSE:4011) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Headwaters Co ROCE % Related Terms

Headwaters Co ROCE % Historical Data

* Premium members only.

The historical data trend for Headwaters Co's ROCE % 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 ROCE % Chart

Headwaters Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial 11.74 13.13 10.33 32.44 10.56

Headwaters Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 -21.22 13.89 30.78 19.27 17.85
TSE:4011
76GF Score
Headwaters Co Ltd TSE:4011
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Headwaters Co ROCE % Calculation

Headwaters Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=138.746/( ( (1800.388 - 527.793) + (3849.872 - 2493.782) )/ 2 )
=138.746/( (1272.595+1356.09)/ 2 )
=138.746/1314.3425
=10.56 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=259.552/( ( (3727.358 - 2389.108) + (3849.872 - 2493.782) )/ 2 )
=259.552/( ( 1338.25 + 1356.09 )/ 2 )
=259.552/1347.17
=19.27 %

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

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 19.27% mean?
Headwaters Co (TSE:4011) has a ROCE % of 19.27% as of Dec. 2025.
Is Headwaters Co's ROCE % too high?
Headwaters Co's current ROCE % is 19.27%. The Software industry median ROCE % is 5.18. Headwaters Co's value of 19.27% is 272.4% above this industry median. 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 ROCE % compare to CRM and SHOP?
Headwaters Co's ROCE % of 19.27% can be compared against companies in the Software industry. The industry median ROCE % is 5.18. Headwaters Co's value of 19.27% is 272.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.18, based on 2,710 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current ROCE % of 19.27% is 272.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current ROCE % is 19.27%. 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 ROCE % is 19.27% and 272.4% above the Software industry median of 5.18. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current ROCE % is 19.27% 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:

  • ROCE %: 19.27%
  • 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
  • Industry Position: 272.4% above the Software median

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

ROCE % 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