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

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JP:7427

Echo Trading Co., Ltd.

(7427)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥891.00
▼(-4.19% Downside)
Action:Reiterated
Date:08/04/26
The score is supported primarily by solid financial stability (low leverage and improved 2026 cash generation) and attractive valuation (low P/E and healthy dividend yield). These positives are tempered by weakening recent operating momentum (declining revenue and very thin margins) and a mixed technical setup with a weaker long-term trend and negative MACD.
Positive Factors
Conservative Leverage
Low and improving leverage reduces financial risk and preserves borrowing capacity. This gives the company flexibility to withstand operating pressure, fund working-capital needs, and pursue opportunities without excessive interest or refinancing constraints.
Negative Factors
Recent Revenue Decline
Recent revenue contraction indicates weakening demand, market share, product mix, or trading activity after stronger growth in 2023–2024. If sustained, lower sales would limit operating leverage and make recovery in earnings more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
Low and improving leverage reduces financial risk and preserves borrowing capacity. This gives the company flexibility to withstand operating pressure, fund working-capital needs, and pursue opportunities without excessive interest or refinancing constraints.
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. 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
null...

Echo Trading Co., Ltd. Financial Statement Overview

Summary
Balance sheet strength is a clear positive (low and improving leverage; debt-to-equity ~0.14), and 2026 operating/free cash flow rebounded strongly with acceptable earnings quality. Offsetting this, revenue is down in 2026 and profitability is thin (net margin ~0.7%) with softer operating margins versus 2024–2025, plus notable cash-flow volatility across years.
Income Statement
54
Neutral
Balance Sheet
74
Positive
Cash Flow
66
Positive
BreakdownFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue105.81B106.39B107.41B96.96B91.93B
Gross Profit11.69B11.96B12.36B11.12B10.70B
EBITDA1.31B1.65B1.76B974.80M570.62M
Net Income778.31M1.00B1.21B590.41M288.17M
Balance Sheet
Total Assets38.90B34.07B33.52B31.67B29.38B
Cash, Cash Equivalents and Short-Term Investments6.23B4.22B4.06B3.69B3.63B
Total Debt1.65B3.32B3.29B3.74B4.23B
Total Liabilities26.72B22.59B22.88B22.08B20.24B
Stockholders Equity12.18B11.46B10.62B9.55B9.10B
Cash Flow
Free Cash Flow3.96B-72.88M1.18B734.54M-2.34B
Operating Cash Flow3.98B-46.95M1.20B756.04M-2.31B
Investing Cash Flow-149.58M384.32M-59.51M-47.17M-65.61M
Financing Cash Flow-1.82B-176.13M-764.32M-653.69M1.56B

Echo Trading Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price930.00
Price Trends
50DMA
816.78
Positive
100DMA
828.76
Positive
200DMA
858.02
Negative
Market Momentum
MACD
3.84
Negative
RSI
62.71
Neutral
STOCH
17.19
Positive
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 930 is above the 20-day moving average (MA) of 818.07, above the 50-day MA of 816.78, and above the 200-day MA of 858.02, indicating a neutral trend. The MACD of 3.84 indicates Negative momentum. The RSI at 62.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 is Positive, 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥12.92B17.473.25%4.69%56.38%
65
Neutral
¥5.17B7.863.31%0.40%-30.88%
65
Neutral
¥90.94B10.062.92%4.36%-24.61%
63
Neutral
¥13.07B10.211.43%3.66%9.21%
59
Neutral
¥22.22B15.592.65%1.62%-4.60%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
47
Neutral
¥13.19B155.071.90%7.83%-85.62%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7427
Echo Trading Co., Ltd.
835.00
-61.93
-6.90%
JP:2806
Yutaka Foods Corporation
1,895.00
-96.42
-4.84%
JP:3392
DELICA FOODS HOLDINGS CO. LTD.
803.00
-0.72
-0.09%
JP:7475
ALBIS Co., Ltd.
2,525.00
-560.64
-18.17%
JP:8043
Starzen Company Limited
1,603.00
429.73
36.63%
JP:8045
Yokohama Maruuo Co., Ltd.
2,045.00
961.79
88.79%
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: Aug 04, 2026