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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:7427

Echo Trading Co., Ltd.

(7427)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
¥916.00
▼(-1.51% Downside)
Action:DowngradedDate: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
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.
Negative Factors
Declining Profitability Margins
Declining profitability margins can hinder the company's ability to reinvest in growth and maintain competitive pricing, affecting long-term viability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.
Read all positive factors

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

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

Company Description
Echo Trading Co., Ltd. trades in pet food and supplies in Japan. The company also operates specialty stores for pets; offers education services for students and companies; and organizes events for pet lovers. In addition, it operates PETPET, a pet...
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
Balance sheet strength is a key positive with conservative, improving leverage (debt-to-equity ~0.14) and growing equity. Cash flow rebounded strongly in 2026 with solid operating and free cash flow, supporting earnings quality, but volatility in prior years reduces predictability. Offsetting these strengths, revenue has recently declined (2026 down 7.7%) and profitability is thin and softening, with low net margins (~0.7%) and weaker EBIT/EBITDA margins vs. prior years.
Income Statement
54
Neutral
Balance Sheet
74
Positive
Cash Flow
66
Positive
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue105.89B105.81B106.39B107.41B96.96B91.93B
Gross Profit11.91B11.69B11.96B12.36B11.12B10.70B
EBITDA1.28B1.20B1.44B1.79B930.77M548.92M
Net Income747.85M778.31M1.00B1.21B590.41M288.17M
Balance Sheet
Total Assets39.89B38.90B34.07B33.52B31.67B29.38B
Cash, Cash Equivalents and Short-Term Investments6.14B6.23B4.22B4.06B3.69B3.63B
Total Debt2.11B1.65B3.32B3.29B3.74B4.23B
Total Liabilities27.97B26.72B22.59B22.88B22.08B20.24B
Stockholders Equity11.91B12.18B11.46B10.62B9.55B9.10B
Cash Flow
Free Cash Flow0.003.96B-72.88M1.18B734.54M-2.34B
Operating Cash Flow0.003.98B-46.95M1.20B756.04M-2.31B
Investing Cash Flow0.00-149.58M384.32M-59.51M-47.17M-65.61M
Financing Cash Flow0.00-1.82B-176.13M-764.32M-653.69M1.56B

Echo Trading Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price930.00
Price Trends
50DMA
899.24
Negative
100DMA
902.95
Negative
200DMA
895.40
Negative
Market Momentum
MACD
-4.32
Negative
RSI
45.15
Neutral
STOCH
53.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7427, the sentiment is Negative. The current price of 930 is above the 20-day moving average (MA) of 880.40, above the 50-day MA of 899.24, and above the 200-day MA of 895.40, indicating a bearish trend. The MACD of -4.32 indicates Negative momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 53.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7427.

Echo Trading Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥14.30B12.331.43%10.77%131.68%
69
Neutral
¥10.21B7.863.25%2.21%7.34%
66
Neutral
¥72.62B5.032.92%5.18%90.21%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
59
Neutral
¥5.35B36.373.31%-1.22%-36.92%
55
Neutral
¥14.76B358.431.90%2.59%21.25%
55
Neutral
¥22.88B11.962.65%2.42%15.75%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7427
Echo Trading Co., Ltd.
877.00
94.63
12.09%
JP:2806
Yutaka Foods Corporation
2,124.00
96.29
4.75%
JP:3392
DELICA FOODS HOLDINGS CO. LTD.
879.00
387.03
78.67%
JP:7475
ALBIS Co., Ltd.
2,615.00
-171.34
-6.15%
JP:8043
Starzen Company Limited
1,241.00
114.15
10.13%
JP:8045
Yokohama Maruuo Co., Ltd.
1,604.00
675.81
72.81%
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: Apr 12, 2026