Why is Echo Trading Co., Ltd. ?
1
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
2
With a fall in Net Sales of -1.24%, the company declared Very Negative results in May 25
- The company has declared negative results for the last 2 consecutive quarters
- INTEREST(HY) At JPY 21.39 MM has Grown at 77.69%
- ROCE(HY) Lowest at 8.27%
- INTEREST COVERAGE RATIO(Q) Lowest at 2,154.95
3
Underperformed the market in the last 1 year
- The stock has generated a return of 9.89% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 39.94%
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.
10.24%
-1.42
20.83%
Japan Nikkei 225
38.59%
1.50
26.58%
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
0
Institutional Holding
0
ROCE (avg)
10.34%
ROE (avg)
6.65%
Valuation Key Factors 
Factor
Value
P/E Ratio
5
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
NA
Dividend Yield
NA
ROCE (Latest)
12.94%
ROE (Latest)
8.89%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
1What is working for the Company
CASH AND EQV(HY)
Highest at JPY 11,821.92 MM
-19What is not working for the Company
INTEREST(HY)
At JPY 21.39 MM has Grown at 77.69%
ROCE(HY)
Lowest at 8.27%
INTEREST COVERAGE RATIO(Q)
Lowest at 2,154.95
PRE-TAX PROFIT(Q)
Fallen at -36.03%
NET PROFIT(Q)
Fallen at -37.71%
Here's what is working for Echo Trading Co., Ltd.
Cash and Eqv
Highest at JPY 11,821.92 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Echo Trading Co., Ltd.
Interest
At JPY 21.39 MM has Grown at 77.69%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 2,154.95
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
Fallen at -36.03%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Fallen at -37.71%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)






