Echo Trading Co., Ltd. (7427) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Echo Trading Co., Ltd.

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Golf Digest Online, Inc.

Why is Echo Trading Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.65%

The company has been able to generate a Return on Equity (avg) of 6.65% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -1.24%, the company declared Very Negative results in Nov 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At JPY 20.88 MM has Grown at 69.09%
ROCE(HY) Lowest at 5.89%
INTEREST COVERAGE RATIO(Q) Lowest at 978.2

Underperformed the market in the last 1 year

The stock has generated a return of 1.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 41.20%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Echo Trading Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Echo Trading Co., Ltd.

-100.0%

-1.55

21.70%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.50%

EBIT Growth (5y)

70.89%

EBIT to Interest (avg)

38.26

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

7.49

Tax Ratio

35.41%

Dividend Payout Ratio

18.03%

Pledged Shares

Institutional Holding

ROCE (avg)

10.34%

ROE (avg)

6.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.48

EV to EBIT

3.38

EV to EBITDA

3.19

EV to Capital Employed

0.44

EV to Sales

0.04

PEG Ratio

Dividend Yield

ROCE (Latest)

12.94%

ROE (Latest)

8.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.85% (YoY

-28What is not working for the Company

INTEREST(HY)

At JPY 20.88 MM has Grown at 69.09%

ROCE(HY)

Lowest at 5.89%

INTEREST COVERAGE RATIO(Q)

Lowest at 978.2

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.29 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.74 times

OPERATING PROFIT(Q)

Lowest at JPY 86.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.32 %

PRE-TAX PROFIT(Q)

Lowest at JPY 71.26 MM

NET PROFIT(Q)

Lowest at JPY 37.99 MM

EPS(Q)

Lowest at JPY 6.26

Here's what is working for Echo Trading Co., Ltd.

Raw Material Cost

Fallen by 0.85% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Echo Trading Co., Ltd.

Interest

At JPY 20.88 MM has Grown at 69.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 978.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 71.26 MM has Fallen at -56.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 37.99 MM has Fallen at -62.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 86.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 71.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 37.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.26

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 22.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.24 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income