Echo Trading CoTSE:7427 +0.97%69 Operating Margin % is 0.82% as of Feb. 2026, which is 86% above its 10-year median of 0.44. GuruFocus rates TSE:7427 with a GF Score™ of 69/100 and a GF Value™ of 円921.07 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Echo Trading Co ranks worse than 73.55% on this metric.
Echo Trading Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Echo Trading Co's Operating Margin % or its related term are showing as below:
TSE:7427'
s Operating Margin % Range Over the Past 10 Years
Min: 0.09 Med: 0.44 Max: 1.6
Current: 1.05
TSE:7427's Operating Margin % is ranked worse than 73.55% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs TSE:7427: 1.05
Echo Trading Co's 5-Year Average Operating Margin % Growth Rate was 27.70% per year.
Echo Trading Co (TSE:7427) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Echo Trading Co Operating Margin % Related Terms
Echo Trading Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Echo Trading Co's Operating 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.
TSE:7427 vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, Echo Trading Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Echo Trading Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Echo Trading Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Echo Trading Co's Operating Margin % for the fiscal year that ended in Feb. 2026 is calculated as
* 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 (TSE:7427) has a Operating Margin % of 0.82% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Echo Trading Co and its competitors. This is 86% above median its historical median of 0.44. Over the past decade, Echo Trading Co's Operating Margin % has ranged from 0.09 to 1.60. According to the industry distribution chart, Echo Trading Co ranks #1435 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 73.6%.
Is Echo Trading Co's Operating Margin % too high?
Echo Trading Co's current Operating Margin % of 0.82% is 86% above median its 10-year median of 0.44. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 1.60. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Echo Trading Co's value of 0.82% is 84.4% below this industry median. Based on the distribution chart, Echo Trading Co ranks #1435 out of 1951 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Echo Trading Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Echo Trading Co's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Echo Trading Co ranks #1435 out of 1951 companies for Operating Margin %. This places Echo Trading Co in the lower half of its industry. The industry median Operating Margin % is 5.26. Echo Trading Co's value of 0.82% is 84.4% below this benchmark. Historically, Echo Trading Co's own Operating Margin % has ranged from 0.09 to 1.60 over the past decade. While the company's 10-year median is 0.44 vs. the industry median of 5.26, 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 Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Echo Trading Co's current Operating Margin % of 0.82% is 84.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Echo Trading Co and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echo Trading Co's current Operating Margin % is 0.82%, which is 86% above median its own 10-year median of 0.44. 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 Operating Margin % is 0.82%, which is 86% above median its 10-year median of 0.44 and 84.4% below the Consumer Packaged Goods industry median of 5.26. Echo Trading Co's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Echo Trading Co (TSE:7427), the current Operating Margin % is 0.82% 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:
Operating Margin %: 0.82% (86% above median its 10-year median of 0.44)
GF Value™: 円921.07 vs. price of 円830.00 (9.9% below fair value)
Industry Position: 84.4% below the Consumer Packaged Goods median (#1435 of 1951)
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.
69GF Score
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