Headwaters CoTSE:4011 -3.26%76 ROE % is 3.68% as of Dec. 2025, which is 70% below its 10-year median of 12.18. 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 2,678 Software companies, Headwaters Co ranks better than 56.09% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Headwaters Co's annualized net income for the quarter that ended in Dec. 2025 was 円49 Mil. Headwaters Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was 円1,325 Mil. Therefore, Headwaters Co's annualized ROE % for the quarter that ended in Dec. 2025 was 3.68%.
The historical rank and industry rank for Headwaters Co's ROE % or its related term are showing as below:
TSE:4011'
s ROE % Range Over the Past 10 Years
Min: 3.47 Med: 12.18 Max: 30.12
Current: 7.02
During the past 8 years, Headwaters Co's highest ROE % was 30.12%. The lowest was 3.47%. And the median was 12.18%.
TSE:4011's ROE % is ranked better than 56.09% of 2678
companies
in the Software industry
Industry Median: 4.685
vs TSE:4011: 7.02
Headwaters Co (TSE:4011) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Headwaters Co ROE % Related Terms
Headwaters Co ROE % Historical Data
* Premium members only.
The historical data trend for Headwaters Co's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Headwaters Co's ROE % distribution charts can be found below:
* The bar in red indicates where Headwaters Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Headwaters Co (TSE:4011) has a ROE % of 3.68% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Headwaters Co and its competitors. This is 70% below median its historical median of 12.18. Over the past decade, Headwaters Co's ROE % has ranged from 3.47 to 30.12. According to the industry distribution chart, Headwaters Co ranks #1176 out of 2678 companies in the Software industry, placing it in the top 43.9%.
Is Headwaters Co's ROE % too high?
Headwaters Co's current ROE % of 3.68% is 70% below median its 10-year median of 12.18. Over the past 10 years, this metric has ranged from a low of 3.47 to a high of 30.12. The Software industry median ROE % is 4.69. Headwaters Co's value of 3.68% is 21.5% below this industry median. Based on the distribution chart, Headwaters Co ranks #1176 out of 2678 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 ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #1176 out of 2678 companies for ROE %. This puts Headwaters Co in the upper half of its industry. The industry median ROE % is 4.69. Headwaters Co's value of 3.68% is 21.5% below this benchmark. Historically, Headwaters Co's own ROE % has ranged from 3.47 to 30.12 over the past decade. While the company's 10-year median is 12.18 vs. the industry median of 4.69, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.69, based on 2,678 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current ROE % of 3.68% is 21.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Headwaters Co and its competitors. For the Software industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current ROE % is 3.68%, which is 70% below median its own 10-year median of 12.18. 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 ROE % is 3.68%, which is 70% below median its 10-year median of 12.18 and 21.5% below the Software industry median of 4.69. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current ROE % is 3.68% 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:
ROE %: 3.68% (70% below median its 10-year median of 12.18)
GF Value™: 円8,007.98 vs. price of 円1,956.00 (75.6% below fair value)
Industry Position: 21.5% below the Software median (#1176 of 2678)
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
Get the complete analysis for TSE:4011
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4011 has been successfully added to your 
