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

JP:7427

Echo Trading Co., Ltd.

(TSE/TYO:7427)

Select Model
Rating:65Neutral
Price Target:JPY 891.00â–²(8.00% Upside)
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 LeverageLow 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 DeclineRecent 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.

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

-10%-5%0%5%10%15%20%25%JP:7427-4.52%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 5.05B
Dividend Yield
3.64%
Average Volume (3M)
7,876
Price to Earnings (P/E)
9.8
Beta (1Y)
0.45
Revenue Growth
1.99%
EPS Growth
-32.03%
Country
Japan
Employees
300
Sector
General
Sector Strength
55
Industry
Packaged Foods

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 fo...

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

54Neutral

Balance Sheet

74Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue105.81B105.81B106.39B107.41B96.96B91.93B
Gross Profit11.79B11.69B11.96B12.36B11.12B10.70B
EBITDA1.31B1.31B1.65B1.76B974.80M570.62M
Net Income778.31M778.31M1.00B1.21B590.41M288.17M
Balance Sheet
Total Assets38.90B38.90B34.07B33.52B31.67B29.38B
Cash, Cash Equivalents and Short-Term Investments6.23B6.23B4.22B4.06B3.69B3.63B
Total Debt1.65B1.65B3.32B3.29B3.74B4.23B
Total Liabilities26.72B26.72B22.59B22.88B22.08B20.24B
Stockholders Equity12.18B12.18B11.46B10.62B9.55B9.10B
Cash Flow
Free Cash Flow03.96B-72.88M1.18B734.54M-2.34B
Operating Cash Flow03.98B-46.95M1.20B756.04M-2.31B
Investing Cash Flow0-149.58M384.32M-59.51M-47.17M-65.61M
Financing Cash Flow0-1.82B-176.13M-764.32M-653.69M1.56B

Echo Trading Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price825.00

Price Trends

50DMA827.28Negative
100DMA820.86Positive
200DMA846.87Negative

Market Momentum

MACD-0.84Negative
RSI49.60Neutral
STOCH61.90Neutral

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 825.00 is above the 20-day moving average (MA) of 824.40, below the 50-day MA of 827.28, and below the 200-day MA of 846.87, indicating a neutral trend. The MACD of -0.84 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7427 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3392JP:339272OutperformJPY 11.63B9.09―3.50%3.66%9.21%
JP:8045JP:804568NeutralJPY 11.33B16.06―1.91%4.69%56.38%
JP:8043JP:804365NeutralJPY 91.47B9.81―4.41%4.36%-24.61%
JP:7427JP:742765NeutralJPY 5.08B9.79―3.64%1.99%-32.03%
JP:7475JP:747558NeutralJPY 32.98B23.19―1.86%0.57%-13.40%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2806JP:280654NeutralJPY 13.74B161.87―2.02%7.83%-85.62%

* General Sector Average

Performance Comparison

0%25%50%75%100%JP:7427JP:2806JP:3392JP:7475JP:8043JP:8045Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7427 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7427Echo Trading Co., Ltd.825.00-39.07-4.52%
JP:2806Yutaka Foods Corporation1978.00-90.16-4.36%
JP:3392DELICA FOODS HOLDINGS CO. LTD.715.00-69.23-8.83%
JP:7475ALBIS Co., Ltd.3770.001122.2642.39%
JP:8043Starzen Company Limited1563.00458.9941.58%
JP:8045Yokohama Maruuo Co., Ltd.1880.00806.4875.13%
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