Headwaters Co., Ltd. (4011) AI Stock Analysis

• Market Cap: ¥8.65B
• Dividend Yield: N/A
• Average Volume (3M): 23.83K
• Price to Earnings (P/E): 184.5
• Beta (1Y): 1.39
• Revenue Growth: 34.56%
• EPS Growth: 4.59%
• Country: JP
• Employees: 240
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.29
• Shares Outstanding: 3,844,144
• 10 Day Avg. Volume: 32,270
• 30 Day Avg. Volume: 23,833
• PEG Ratio: -2.34
• Price to Book (P/B): 8.06
• Price to Sales (P/S): 2.75
• P/FCF Ratio: -176.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ¥2,100.00 ▼(-27.26% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held down primarily by weakening financial quality (margin compression, higher leverage, and negative operating/free cash flow). Technicals also reflect a clear downtrend with weak momentum, and valuation looks stretched with a very high P/E and no dividend support.

Positive Factors

Revenue growth

Sustained and accelerating top-line growth indicates persistent demand for the company’s AI products and services. Over 2–6 months this supports expanding market share, larger project pipelines and potential scale benefits, providing a foundation for long-term investment in products and customers.

Negative Factors

Rising leverage

The material step-up in leverage substantially reduces financial flexibility and raises interest expense risk. Over months this constrains the company’s ability to invest in R&D or pursue opportunistic deals, increases refinancing vulnerability, and forces more conservative capital allocation choices.

Headwaters Co., Ltd. Business Overview & Revenue Model

Company Description

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 applicat...

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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 applicat...

How the Company Makes Money

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Headwaters Co., Ltd. Financial Statement Overview

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.21B	3.90B	2.91B	2.32B	1.57B	1.17B
Gross Profit	1.36B	1.73B	1.24B	855.09M	645.54M	524.26M
EBITDA	100.48M	256.72M	327.00M	110.03M	121.43M	70.87M
Net Income	119.39M	58.13M	272.79M	70.68M	75.14M	27.04M
Balance Sheet
Total Assets	1.66B	3.85B	1.81B	1.29B	1.17B	973.21M
Cash, Cash Equivalents and Short-Term Investments	833.10M	625.14M	843.23M	897.90M	818.61M	765.55M
Total Debt	0.00	1.90B	0.00	0.00	0.00	0.00
Total Liabilities	448.06M	2.50B	534.95M	332.58M	293.80M	172.91M
Stockholders Equity	1.20B	1.33B	1.27B	958.44M	875.44M	800.30M
Cash Flow
Free Cash Flow	0.00	-60.64M	117.83M	71.44M	43.41M	45.34M
Operating Cash Flow	0.00	-38.71M	144.41M	87.66M	84.27M	48.08M
Investing Cash Flow	0.00	-2.09B	-210.97M	-13.48M	-31.21M	-52.78M
Financing Cash Flow	0.00	1.91B	10.25M	5.40M	0.00	16.75M

Headwaters Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2887.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4011, the sentiment is Negative. The current price of 2887 is above the 20-day moving average (MA) of 2458.40, above the 50-day MA of 2754.96, and below the 200-day MA of 3321.58, indicating a bearish trend. The MACD of -147.55 indicates Positive momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 21.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4011.

Headwaters Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥6.23B	21.40	―	0.57%	21.03%	32.29%
5256	69 Neutral	¥2.68B	27.18	―	―	13.48%	61.77%
5033	66 Neutral	¥4.47B	21.99	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4397	60 Neutral	¥6.86B	27.15	―	―	11.32%	―
4448	58 Neutral	¥11.92B	23.59	―	―	14.63%	-760.87%
4011	42 Neutral	¥8.65B	184.47	―	―	34.56%	4.59%

Headwaters Co., Ltd. Corporate Events