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Echo Trading Co., Ltd. (JP:7427)
:7427
Japanese Market

Echo Trading Co., Ltd. (7427) AI Stock Analysis

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JP

Echo Trading Co., Ltd.

(7427)

Rating:76Outperform
Price Target:
¥956.00
▲(5.40%Upside)
Echo Trading Co., Ltd. demonstrates strong financial performance and an attractive valuation, making it appealing for investors. While technical indicators show positive momentum, cash flow management remains an area for improvement.

Echo Trading Co., Ltd. (7427) vs. iShares MSCI Japan ETF (EWJ)

Echo Trading Co., Ltd. Business Overview & Revenue Model

Company DescriptionEcho Trading Co., Ltd. (7427) is a company involved in the manufacturing and distribution of electronic components and devices. The company operates in the electronics sector, focusing on providing high-quality products such as printed circuit boards (PCBs), semiconductors, and various consumer electronic goods. Echo Trading Co., Ltd. is known for its commitment to innovation and quality, serving a wide range of industries including automotive, telecommunications, and consumer electronics.
How the Company Makes MoneyEcho Trading Co., Ltd. generates revenue primarily through the sale of its electronic components and devices. The company maintains a diverse portfolio of products that cater to different sectors, ensuring a steady demand for its offerings. Key revenue streams include direct sales to manufacturers who incorporate these components into their final products, as well as distribution agreements with various retailers. The company may also engage in partnerships with technology firms to co-develop new products, enhancing its market presence and revenue potential. Additionally, Echo Trading Co., Ltd. might leverage its expertise in electronics to offer consulting services, providing technical support and customized solutions to its clients.

Echo Trading Co., Ltd. Financial Statement Overview

Summary
Echo Trading Co., Ltd. exhibits strong financial growth and stability with consistent revenue increases and a robust balance sheet. However, profitability margins and cash flow management show room for improvement.
Income Statement
78
Positive
Echo Trading Co., Ltd. has shown consistent revenue growth over the years, with a notable increase in total revenue from ¥81.4 billion in 2020 to ¥106.4 billion in 2025. The gross profit margin has remained strong, averaging around 11% over the period, indicating efficient cost management. However, the net profit margin has fluctuated, reflecting challenges in maintaining profitability. EBIT and EBITDA margins have shown modest growth, signaling operational improvements.
Balance Sheet
82
Very Positive
The company's balance sheet is robust, with a healthy equity ratio averaging over 30%, suggesting strong financial stability. The debt-to-equity ratio is relatively low, indicating conservative leverage and manageable debt levels. The return on equity has improved, reflecting enhanced financial performance and efficient use of shareholder equity. Overall, the balance sheet portrays a stable financial position with minimal risk.
Cash Flow
65
Positive
Echo Trading Co., Ltd. has experienced volatility in cash flow from operations, with a significant negative operating cash flow in 2022. Despite this, free cash flow has generally been positive, indicating the company's ability to generate cash after capital expenditures. The free cash flow to net income ratio suggests that the company efficiently turns profits into cash, though the operating cash flow to net income ratio has shown variability, pointing to potential cash flow management challenges.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue106.93B106.39B107.41B96.96B91.93B85.65B
Gross Profit12.13B11.96B12.43B11.19B10.78B10.14B
EBITDA1.54B1.65B1.76B974.80M570.62M421.51M
Net Income1.03B1.00B1.21B590.41M288.17M242.69M
Balance Sheet
Total Assets41.68B34.07B33.52B31.67B29.38B30.41B
Cash, Cash Equivalents and Short-Term Investments7.85B4.22B4.06B3.69B3.63B4.45B
Total Debt3.15B3.25B3.20B3.70B4.20B2.50B
Total Liabilities30.39B22.59B22.88B22.08B20.24B21.47B
Stockholders Equity11.27B11.46B10.62B9.55B9.10B8.91B
Cash Flow
Free Cash Flow0.00-72.88M1.15B719.61M-2.37B510.09M
Operating Cash Flow0.00-46.95M1.20B756.04M-2.31B535.59M
Investing Cash Flow0.00384.32M-59.51M-47.17M-65.61M-29.15M
Financing Cash Flow0.00-176.13M-764.32M-653.69M1.56B-35.35M

Echo Trading Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price907.00
Price Trends
50DMA
876.50
Positive
100DMA
852.88
Positive
200DMA
872.54
Positive
Market Momentum
MACD
10.32
Positive
RSI
55.43
Neutral
STOCH
57.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7427, the sentiment is Positive. The current price of 907 is above the 20-day moving average (MA) of 903.70, above the 50-day MA of 876.50, and above the 200-day MA of 872.54, indicating a bullish trend. The MACD of 10.32 indicates Positive momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7427.

Echo Trading Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥5.50B5.92
3.31%-0.95%-17.38%
73
Outperform
¥4.71B4.35
4.66%3.99%42.98%
69
Neutral
¥5.28B18.00
1.28%3.60%-38.49%
68
Neutral
¥196.23B21.848.29%2.32%4.97%2.34%
66
Neutral
¥4.97B34.11
2.75%-0.02%-69.42%
65
Neutral
¥4.09B17.31
1.57%-1.00%2.29%
44
Neutral
¥5.16B
0.79%-0.43%-499.91%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7427
Echo Trading Co., Ltd.
907.00
-181.55
-16.68%
JP:2286
Hayashikane Sangyo Co., Ltd.
540.00
33.48
6.61%
JP:2293
Takizawa Ham Co., Ltd.
2,515.00
-520.00
-17.13%
JP:2654
ASMO Corp.
364.00
-29.33
-7.46%
JP:2894
Ishii Food Co., Ltd.
311.00
8.82
2.92%
JP:2911
Asahimatsu Foods Co., Ltd.
2,232.00
-37.15
-1.64%
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.Date of analysis: May 24, 2025