Echo Trading Co., Ltd. (JP:7427)
:7427
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Echo Trading Co., Ltd.
(7427)
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Rating:59Neutral
Price Target:
¥916.00
▼(-1.51% Downside)
Action:Downgraded
Date:04/12/26
The score is driven primarily by solid financial stability (low and improving leverage) and a strong 2026 cash flow rebound, tempered by weakening revenue and very thin, declining profitability. Technicals add modest pressure with price below key moving averages and negative MACD. Valuation is a headwind due to a high P/E despite a supportive dividend yield.
Positive Factors
Conservative leverage
A low, falling debt-to-equity (about 0.14) provides durable financial flexibility: it reduces refinancing risk, supports capacity to fund working capital or opportunistic M&A, and strengthens the company's resilience to cyclical downturns in construction activity.
Negative Factors
Revenue decline
A multi-year revenue downturn (2026 down ~7.7%) signals weakening demand or market share erosion. Persistent top-line contraction reduces scale economies, constrains pricing power, and limits the ability to invest in products or services needed to restore growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
A low, falling debt-to-equity (about 0.14) provides durable financial flexibility: it reduces refinancing risk, supports capacity to fund working capital or opportunistic M&A, and strengthens the company's resilience to cyclical downturns in construction activity.
Read all positive factors
Echo Trading Co., Ltd. (7427) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.09B
Dividend Yield3.31%
Average Volume (3M)12.78K
Price to Earnings (P/E)6.5
Beta (1Y)0.65
Revenue Growth-0.54%
EPS Growth-22.78%
CountryJP
Employees323
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)123.91
Shares Outstanding6,114,546
10 Day Avg. Volume9,500
30 Day Avg. Volume12,776
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)0.45
Price to Sales (P/S)0.05
P/FCF Ratio1.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Echo Trading Co., Ltd. Business Overview & Revenue Model
Company Description
Echo Trading Co., Ltd. is engaged in the distribution of pet food and a variety of animal supplies throughout Japan. Beyond its trading activities, the company also manages specialized retail outlets catering to pets, provides educational programs...
How the Company Makes Money
Echo Trading Co., Ltd. generates revenue through the sale and distribution of building materials and equipment to businesses within the construction and real estate industries. Its income is derived from offering products that are critical to the ...
Echo Trading Co., Ltd. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 105.89B | 105.81B | 106.39B | 107.41B | 96.96B | 91.93B |
| Gross Profit | 11.91B | 11.69B | 11.96B | 12.36B | 11.12B | 10.70B |
| EBITDA | 1.30B | 1.31B | 1.65B | 1.76B | 974.80M | 570.62M |
| Net Income | 747.85M | 778.31M | 1.00B | 1.21B | 590.41M | 288.17M |
Balance Sheet | ||||||
| Total Assets | 39.89B | 38.90B | 34.07B | 33.52B | 31.67B | 29.38B |
| Cash, Cash Equivalents and Short-Term Investments | 6.14B | 6.23B | 4.22B | 4.06B | 3.69B | 3.63B |
| Total Debt | 2.11B | 1.65B | 3.32B | 3.29B | 3.74B | 4.23B |
| Total Liabilities | 27.97B | 26.72B | 22.59B | 22.88B | 22.08B | 20.24B |
| Stockholders Equity | 11.91B | 12.18B | 11.46B | 10.62B | 9.55B | 9.10B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.96B | -72.88M | 1.18B | 734.54M | -2.34B |
| Operating Cash Flow | 0.00 | 3.98B | -46.95M | 1.20B | 756.04M | -2.31B |
| Investing Cash Flow | 0.00 | -149.58M | 384.32M | -59.51M | -47.17M | -65.61M |
| Financing Cash Flow | 0.00 | -1.82B | -176.13M | -764.32M | -653.69M | 1.56B |
Echo Trading Co., Ltd. Technical Analysis
Neutral
930.00
Price Trends
855.08
Negative
879.26
Negative
892.12
Negative
Market Momentum
-8.92
Negative
48.34
Neutral
43.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7427, the sentiment is Neutral. The current price of 930 is above the 20-day moving average (MA) of 830.30, above the 50-day MA of 855.08, and above the 200-day MA of 892.12, indicating a neutral trend. The MACD of -8.92 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7427.
Echo Trading Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥11.81B | 17.93 | ― | 3.25% | 2.01% | 23.09% | |
65 Neutral | ¥13.20B | 8.69 | ― | 1.43% | 5.88% | 180.90% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | ¥68.94B | 8.13 | ― | 2.92% | 2.77% | -30.16% | |
59 Neutral | ¥5.09B | 6.50 | ― | 3.31% | -0.54% | -22.78% | |
55 Neutral | ¥21.35B | 15.51 | ― | 2.65% | 2.82% | -15.93% | |
46 Neutral | ¥12.99B | 63.66 | ― | 1.90% | 3.69% | -63.11% |
* Consumer Defensive Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.