Why is Echo Trading Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 6.95%
- The company has been able to generate a Return on Equity (avg) of 6.95% 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 38.26
3
Healthy long term growth as Operating profit has grown by an annual rate 21.46%
4
The company has declared Negative results for the last 6 consecutive quarters
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
- DIVIDEND PER SHARE(HY) Lowest at JPY 4.15
- INTEREST(Q) Highest at JPY 15.18 MM
5
With ROE of 5.84%, it has a very attractive valuation with a 0.46 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 -5.88%, its profits have fallen by -37.3%
6
Below par performance in long term as well as near term
- Along with generating -5.88% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How 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.
-6.64%
-2.37
15.63%
Japan Nikkei 225
81.96%
3.25
27.24%
Quality key factors
Factor
Value
Sales Growth (5y)
4.80%
EBIT Growth (5y)
21.46%
EBIT to Interest (avg)
38.26
Debt to EBITDA (avg)
1.30
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
7.48
Tax Ratio
35.41%
Dividend Payout Ratio
23.32%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.34%
ROE (avg)
6.95%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.46
EV to EBIT
1.47
EV to EBITDA
1.35
EV to Capital Employed
0.20
EV to Sales
0.02
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.61%
ROE (Latest)
5.84%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
1What is working for the Company
CASH AND EQV(HY)
Highest at JPY 13,357.44 MM
-13What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DIVIDEND PER SHARE(HY)
Lowest at JPY 4.15
INTEREST(Q)
Highest at JPY 15.18 MM
Here's what is working for Echo Trading Co., Ltd.
Cash and Eqv
Highest at JPY 13,357.44 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 15.18 MM has Grown at 71.71%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 15.18 MM
in the last five periods and Increased by 71.71% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Dividend per share
Lowest at JPY 4.15
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (JPY)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






