Echo Trading CoTSE:7427 -0.12%74 Gross Margin % is 10.93% as of Feb. 2026, which is 7% below its 10-year median of 11.77. GuruFocus rates TSE:7427 with a GF Score™ of 74/100 and a GF Value™ of 円921.63 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,900 Consumer Packaged Goods companies, Echo Trading Co ranks worse than 83.47% on this metric.
Echo Trading Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Echo Trading Co's Gross Margin % or its related term are showing as below:
TSE:7427'
s Gross Margin % Range Over the Past 10 Years
Min: 11.14 Med: 11.77 Max: 12.06
Current: 11.14
During the past 13 years, the highestGross Margin % of Echo Trading Co was 12.06%. The lowest was 11.14%. And the median was 11.77%.
TSE:7427's Gross Margin % is ranked worse than 83.47% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.365
vs TSE:7427: 11.14
Echo Trading Co had a gross margin of 10.93% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Echo Trading Co was -1.20% per year.
Echo Trading Co (TSE:7427) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Echo Trading Co had a gross margin of 10.93% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Echo Trading Co Gross Margin % Related Terms
Echo Trading Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Echo Trading Co's Gross Margin % 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.
For the Packaged Foods subindustry, Echo Trading Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Echo Trading Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Echo Trading Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Echo Trading Co (TSE:7427) has a Gross Margin % of 10.93% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Echo Trading Co and its competitors. This is near median its historical median of 11.77. Over the past decade, Echo Trading Co's Gross Margin % has ranged from 11.14 to 12.06. According to the industry distribution chart, Echo Trading Co ranks #1586 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 83.5%.
Is Echo Trading Co's Gross Margin % too high?
Echo Trading Co's current Gross Margin % of 10.93% is near median its 10-year median of 11.77. Over the past 10 years, this metric has ranged from a low of 11.14 to a high of 12.06. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Echo Trading Co's value of 10.93% is 58.5% below this industry median. Based on the distribution chart, Echo Trading Co ranks #1586 out of 1900 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Echo Trading Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Echo Trading Co's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Echo Trading Co ranks #1586 out of 1900 companies for Gross Margin %. This places Echo Trading Co in the lower half of its industry. The industry median Gross Margin % is 26.37. Echo Trading Co's value of 10.93% is 58.5% below this benchmark. Historically, Echo Trading Co's own Gross Margin % has ranged from 11.14 to 12.06 over the past decade. While the company's 10-year median is 11.77 vs. the industry median of 26.37, Echo Trading Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,900 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Echo Trading Co's current Gross Margin % of 10.93% is 58.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Echo Trading Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echo Trading Co's current Gross Margin % is 10.93%, which is near median its own 10-year median of 11.77. 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 Fairly Valued. The stock's GF Value™ is 円921.63, compared to a current price of 円845.00 — trading 8.3% below its estimated fair value. The current Gross Margin % is 10.93%, which is near median its 10-year median of 11.77 and 58.5% below the Consumer Packaged Goods industry median of 26.37. Echo Trading Co's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Echo Trading Co (TSE:7427), the current Gross Margin % is 10.93% 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845.00 is trading 8.3% below its estimated GF Value™ of 円921.63.
GuruFocus considers Echo Trading Co to be Fairly Valued.
Key valuation signals for TSE:7427:
Gross Margin %: 10.93% (near median its 10-year median of 11.77)
GF Value™: 円921.63 vs. price of 円845.00 (8.3% below fair value)
Industry Position: 58.5% below the Consumer Packaged Goods median (#1586 of 1900)
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 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.
74GF Score
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