ScoreWhy 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
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 37.83
3
Healthy long term growth as Operating profit has grown by an annual rate 70.89%
4
With a fall in Net Sales of -0.85%, 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
5
With ROE of 8.89%, it has a very attractive valuation with a 0.48 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.35%, its profits have fallen by -20.8%
6
Below par performance in long term as well as near term
- Along with generating -2.35% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Echo Trading Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Echo Trading Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Echo Trading Co., Ltd.
-2.35%
-1.30
23.58%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality 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)
7.43
Tax Ratio
35.41%
Dividend Payout Ratio
18.03%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.34%
ROE (avg)
6.65%
ValuationValuation 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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What 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)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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