Echo Trading Co (TSE:7427) EBIT: 円1,213 Mil (TTM As of Feb. 2026)


TSE:7427 Echo Trading Co Ltd TSE:7427
70 GF Score
Price 円830.00
GF Value 円921.07
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Echo Trading Co EBIT?

Echo Trading Co TSE:7427 70 EBIT is 円1,213 Mil as of Feb. 2026. GuruFocus rates TSE:7427 with a GF Score™ of 70/100 and a GF Value™ of 円921.07 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Echo Trading Co's earnings before interest and taxes (EBIT) for the six months ended in Feb. 2026 was 円510 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2026 was 円1,213 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Echo Trading Co's annualized ROC % for the quarter that ended in Feb. 2026 was 6.69%. Echo Trading Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 26.55%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Echo Trading Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 263.77%.


Echo Trading Co  (TSE:7427) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Echo Trading Co's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=864.88 * ( 1 - 34.88% )/( (8393.534 + 8447.986)/ 2 )
=563.209856/8420.76
=6.69 %

where

Invested Capital(Q: Aug. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=39885.608 - 25354.67 - ( 6137.404 - max(0, 27510.272 - 37612.83+6137.404))
=8393.534

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=38899.047 - 24220.407 - ( 6230.654 - max(0, 26287.62 - 36600.773+6230.654))
=8447.986

Note: The Operating Income data used here is two times the semi-annual (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Echo Trading Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1020.428/( ( (966.046 + max(2671.709, 0)) + (957.399 + max(3093.118, 0)) )/ 2 )
=1020.428/( ( 3637.755 + 4050.517 )/ 2 )
=1020.428/3844.136
=26.55 %

where Working Capital is:

Working Capital(Q: Aug. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(24932.393 + 3487.803 + 111.785) - (25354.67 + 0 + 505.602)
=2671.709

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(24055.898 + 3529.636 + 145.20400000001) - (24220.407 + 0 + 417.213)
=3093.118

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Feb. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Echo Trading Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Feb. 2026 )
=1213.209/459.953
=263.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Echo Trading Co EBIT Related Terms


Echo Trading Co EBIT Historical Data

* Premium members only.

The historical data trend for Echo Trading Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Echo Trading Co EBIT Chart

Echo Trading Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 488.41 902.14 1,689.93 1,570.89 1,213.21

Echo Trading Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 613.64 1,068.38 502.51 703.00 510.21

TSE:7427 vs KHC, GIS: EBIT Comparison

For the Packaged Foods subindustry, Echo Trading Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Echo Trading Co EV-to-EBIT vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Echo Trading Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Echo Trading Co's EV-to-EBIT falls into.


TSE:7427
70GF Score
Echo Trading Co Ltd TSE:7427
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Echo Trading Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円1,213 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円1,213 Mil mean?
Echo Trading Co (TSE:7427) has a EBIT of 円1,213 Mil as of Feb. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Echo Trading Co.
Is Echo Trading Co's EBIT too high?
Echo Trading Co's current EBIT is 円1,213 Mil. Overall, Echo Trading Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Echo Trading Co's EBIT compare to KHC and GIS?
Echo Trading Co's EBIT of 円1,213 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Consumer Packaged Goods company?
A good EBIT depends on the Consumer Packaged Goods industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Echo Trading Co. Echo Trading Co's current EBIT is 円1,213 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Echo Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Echo Trading Co (TSE:7427) is currently considered Modestly Undervalued. The stock's GF Value™ is 円921.07, compared to a current price of 円830.00 — trading 9.9% below its estimated fair value. The current EBIT is 円1,213 Mil. Echo Trading Co's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Echo Trading Co (TSE:7427), the current EBIT is 円1,213 Mil as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Echo Trading Co (TSE:7427) Overvalued in 2026?

Based on GuruFocus' analysis, Echo Trading Co stock appears to be undervalued. The current stock price of 円830.00 is trading 9.9% below its estimated GF Value™ of 円921.07. GuruFocus considers Echo Trading Co to be Modestly Undervalued.

Key valuation signals for TSE:7427:

  • EBIT: 円1,213 Mil
  • GF Value™: 円921.07 vs. price of 円830.00 (9.9% below fair value)
  • GF Score™: 70/100 with 3 warning signs

No single metric tells the full story. See the TSE:7427 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Echo Trading Co Business Description

Address No. 1 No. 23 in Nishinomiya, Hyogo Prefecture Naruohama 2-chome, Nishinomiya, JPN, 663-8142
Echo Trading Co Ltd is a Japan-based company offering diversified products and services for pets. The company is engaged in specialty store business, wholesale business, product development business, education business, sales promotion business, event business, and internet business. Its specialty store business, wholesale business, and product development business are engaged in the production and distribution of pet food and pet supplies to pet home centers, supermarkets, and drug stores. Its internet business transmits information useful for pet owners and pet lives such as searching for pet-related facilities such as animal hospitals and trimming salons, and travel knowledge on pets.
70GF Score

Get the complete analysis for TSE:7427

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円830.00
Price
円921.07
GF Value