Revenue GrowthSustained top-line momentum (including ~21% in 2025) indicates product-market fit and demand resilience. Over a 2–6 month horizon this supports scale advantages, investment capacity for R&D or sales, and a base to restore margins if cost pressures are managed.

Gross Margin HealthHistorically healthy gross margins imply pricing power or efficient delivery, providing a structural cushion against cost shocks. Even if trending down, a solid gross margin base supports long‑term profitability recovery and protects operating income as revenue grows.

Prior Cash Generation TrackA multi-year history of positive operating and free cash flow (2020–2024) shows the company previously converted profits into liquidity. That operational cash conversion track record suggests management and business model can generate funds once recent disruptions are addressed.

Bears Say

Negative Cash Flow 2025The 2025 reversal to negative operating and free cash flow is a durable warning sign: it reduces internal funding for operations and capex, forces reliance on external financing, and constrains strategic flexibility over the next several months if cash conversion does not rebound.

Rising LeverageA material step-up in debt after years of no leverage increases financial risk and interest expense. This reduces resilience to earnings volatility and limits ability to invest or absorb shocks, making recovery efforts more costly and sensitive to cash flow performance.

Margin CompressionCompressing operating and net margins despite higher revenue signals structural cost or pricing pressures. If margins continue to erode, revenue growth will not translate into sustainable earnings or cash, undermining long‑term profitability and financial stability.

Headwaters Co., Ltd. News

Headwaters Co., Ltd. Reports Q3 2025 Financial Results with Increased Sales but Declined Profits

The latest announcement is out from Headwaters Co., Ltd. ( ($JP:4011) ). Headwaters Co., Ltd. reported its consolidated...

3M ago

4011

Headwaters Co., Ltd. Reports Q2 2025 Financial Results with Increased Sales but Declining Profits

Headwaters Co., Ltd. ( ($JP:4011) ) has shared an update. Headwaters Co., Ltd. reported its consolidated financial results...

6M ago

4011

Headwaters Co., Ltd. Posts Strong Q3 2024 Results

Headwaters Co., Ltd. (JP:4011) has released an update. Headwaters Co., Ltd. reported a strong financial performance for the...

1y ago

4011

Headwaters Co. Posts Strong Q2 Growth

Headwaters Co., Ltd. (JP:4011) has released an update. Headwaters Co., Ltd. reports a robust financial performance for the...

1y ago

4011

4011 FAQ

What was Headwaters Co., Ltd.’s price range in the past 12 months?

Headwaters Co., Ltd. lowest stock price was ¥2663.00 and its highest was ¥4750.00 in the past 12 months.

What is Headwaters Co., Ltd.’s market cap?

Headwaters Co., Ltd.’s market cap is ¥11.09B.

When is Headwaters Co., Ltd.’s upcoming earnings report date?

Headwaters Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 89 days.

How were Headwaters Co., Ltd.’s earnings last quarter?

Headwaters Co., Ltd. released its earnings results on Feb 18, 2026. The company reported ¥3.29 earnings per share for the quarter, beating the consensus estimate of N/A by ¥3.29.

Is Headwaters Co., Ltd. overvalued?

According to Wall Street analysts Headwaters Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Headwaters Co., Ltd. pay dividends?

Headwaters Co., Ltd. does not currently pay dividends.

What is Headwaters Co., Ltd.’s EPS estimate?

Headwaters Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Headwaters Co., Ltd. have?

Headwaters Co., Ltd. has 3,844,144 shares outstanding.

What happened to Headwaters Co., Ltd.’s price movement after its last earnings report?

Headwaters Co., Ltd. reported an EPS of ¥3.29 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.406%.

Which hedge fund is a major shareholder of Headwaters Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4011

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Headwaters Co., Ltd.

Headwaters Co.,Ltd engages in planning and developing artificial intelligence (AI) applications in Japan. It is also involved in the digital transformation, AI platform operation, cloud service operation, cloud robotics service, and robot application production activities. The company was founded in 2005 and is headquartered in Tokyo, Japan.