Headwaters CoTSE:4011 +2.88%75 Altman Z-Score is 4.28 as of Jul. 05, 2026, which is 81% below its 10-year median of 22.66. GuruFocus rates TSE:4011 with a GF Score™ of 75/100 and a GF Value™ of 円8,039.98 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,761 Software companies, Headwaters Co ranks better than 62.4% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 4.25 is strong.
Headwaters Co has a Altman Z-Score of 4.28, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Headwaters Co's Altman Z-Score or its related term are showing as below:
TSE:4011'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.65 Med: 22.66 Max: 47.69
Current: 4.25
During the past 8 years, Headwaters Co's highest Altman Z-Score was 47.69. The lowest was 3.65. And the median was 22.66.
Headwaters Co (TSE:4011) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Headwaters Co Altman Z-Score Related Terms
Headwaters Co Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Headwaters Co's Altman Z-Score 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: Altman Z-Score Comparison
For the Software - Application subindustry, Headwaters Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Software Industry
For the Software industry and Technology sector, Headwaters Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Headwaters Co's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Headwaters Co's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
-0.2026
+
1.4
*
0.1439
+
3.3
*
0.0508
+
0.6
*
5.0828
+
1.0
*
1.1093
=
4.28
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Headwaters Co (TSE:4011) has a Altman Z-Score of 4.28 as of Jul. 05, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Headwaters Co and its competitors. This is 81% below median its historical median of 22.66. Over the past decade, Headwaters Co's Altman Z-Score has ranged from 3.65 to 47.69. According to the industry distribution chart, Headwaters Co ranks #1038 out of 2761 companies in the Software industry, placing it in the top 37.6%.
Is Headwaters Co's Altman Z-Score too high?
Headwaters Co's current Altman Z-Score of 4.28 is 81% below median its 10-year median of 22.66. Over the past 10 years, this metric has ranged from a low of 3.65 to a high of 47.69. The Software industry median Altman Z-Score is 3.19. Headwaters Co's value of 4.28 is 34.2% above this industry median. Based on the distribution chart, Headwaters Co ranks #1038 out of 2761 companies in the Software industry, which is above the industry midpoint. Overall, Headwaters Co has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Headwaters Co's Altman Z-Score compare to UBER and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #1038 out of 2761 companies for Altman Z-Score. This puts Headwaters Co in the upper half of its industry. The industry median Altman Z-Score is 3.19. Headwaters Co's value of 4.28 is 34.2% above this benchmark. Historically, Headwaters Co's own Altman Z-Score has ranged from 3.65 to 47.69 over the past decade. While the company's 10-year median is 22.66 vs. the industry median of 3.19, 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 Altman Z-Score for a Software company?
The median Altman Z-Score among Software companies is 3.19, based on 2,761 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Headwaters Co's current Altman Z-Score of 4.28 is 34.2% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Headwaters Co and its competitors. For the Software industry, the median Altman Z-Score is 3.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current Altman Z-Score is 4.28, which is 81% below median its own 10-year median of 22.66. 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 Altman Z-Score is 4.28, which is 81% below median its 10-year median of 22.66 and 34.2% above the Software industry median of 3.19. Headwaters Co's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Headwaters Co (TSE:4011), the current Altman Z-Score is 4.28 as of Jul. 05, 2026. 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:
Altman Z-Score: 4.28 (81% below median its 10-year median of 22.66)
GF Value™: 円8,039.98 vs. price of 円2,181.00 (72.9% below fair value)
Industry Position: 34.2% above the Software median (#1038 of 2761)
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.
75GF Score
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