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Echo Trading CoTSE:7427 +1.22%73 Return-on-Tangible-Equity is 5.83% as of Feb. 2026, which is 21% above its 10-year median of 4.80. GuruFocus rates TSE:7427 with a GF Score™ of 73/100 and a GF Value™ of 円922.89 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,880 Consumer Packaged Goods companies, Echo Trading Co ranks worse than 53.88% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Echo Trading Co's annualized net income for the quarter that ended in Feb. 2026 was 円648 Mil. Echo Trading Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円11,119 Mil. Therefore, Echo Trading Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 5.83%.
The historical rank and industry rank for Echo Trading Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:7427'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.2 Med: 4.8 Max: 12.11
Current: 6.96
During the past 13 years, Echo Trading Co's highest Return-on-Tangible-Equity was 12.11%. The lowest was -0.20%. And the median was 4.80%.
TSE:7427's Return-on-Tangible-Equity is ranked worse than 53.88% of 1880
companies
in the Consumer Packaged Goods industry
Industry Median: 7.795
vs TSE:7427: 6.96
Echo Trading Co (TSE:7427) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Echo Trading Co Return-on-Tangible-Equity Related Terms
Echo Trading Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Echo Trading Co's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Echo Trading Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Echo Trading Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Echo Trading Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.83% mean?
Echo Trading Co (TSE:7427) has a Return-on-Tangible-Equity of 5.83% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Echo Trading Co and its competitors. This is 21% above median its historical median of 4.80. According to the industry distribution chart, Echo Trading Co ranks #1013 out of 1880 companies in the Consumer Packaged Goods industry, placing it in the top 53.9%.
Is Echo Trading Co's Return-on-Tangible-Equity too high?
Echo Trading Co's current Return-on-Tangible-Equity of 5.83% is 21% above median its 10-year median of 4.80. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.80. Echo Trading Co's value of 5.83% is 25.2% below this industry median. Based on the distribution chart, Echo Trading Co ranks #1013 out of 1880 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Echo Trading Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Echo Trading Co's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Echo Trading Co ranks #1013 out of 1880 companies for Return-on-Tangible-Equity. This places Echo Trading Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.80. Echo Trading Co's value of 5.83% is 25.2% below this benchmark. While the company's 10-year median is 4.80 vs. the industry median of 7.80, 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 Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.80, based on 1,880 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Echo Trading Co's current Return-on-Tangible-Equity of 5.83% is 25.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Echo Trading Co and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echo Trading Co's current Return-on-Tangible-Equity is 5.83%, which is 21% above median its own 10-year median of 4.80. 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922.89, compared to a current price of 円827.00 — trading 10.4% below its estimated fair value. The current Return-on-Tangible-Equity is 5.83%, which is 21% above median its 10-year median of 4.80 and 25.2% below the Consumer Packaged Goods industry median of 7.80. Echo Trading Co's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Echo Trading Co (TSE:7427), the current Return-on-Tangible-Equity is 5.83% 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827.00 is trading 10.4% below its estimated GF Value™ of 円922.89.
GuruFocus considers Echo Trading Co to be Modestly Undervalued.
Key valuation signals for TSE:7427:
Return-on-Tangible-Equity: 5.83% (21% above median its 10-year median of 4.80)
GF Value™: 円922.89 vs. price of 円827.00 (10.4% below fair value)
Industry Position: 25.2% below the Consumer Packaged Goods median (#1013 of 1880)
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.
73GF Score
Get the complete analysis for TSE:7427
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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