Echo Trading CoTSE:7427 +1.21%69 ROA % is 1.65% as of Feb. 2026, which is 14% above its 10-year median of 1.45. GuruFocus rates TSE:7427 with a GF Score™ of 69/100 and a GF Value™ of 円921.42 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,988 Consumer Packaged Goods companies, Echo Trading Co ranks worse than 58.25% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Echo Trading Co's annualizedNet Income for the quarter that ended in Feb. 2026 was 円648 Mil.
Echo Trading Co's average Total Assets over the quarter that ended in Feb. 2026 was 円39,392 Mil. Therefore, Echo Trading Co's annualized ROA % for the quarter that ended in Feb. 2026 was 1.65%.
The historical rank and industry rank for Echo Trading Co's ROA % or its related term are showing as below:
TSE:7427'
s ROA % Range Over the Past 10 Years
Min: -0.07 Med: 1.45 Max: 3.72
Current: 2.07
During the past 13 years, Echo Trading Co's highest ROA % was 3.72%. The lowest was -0.07%. And the median was 1.45%.
TSE:7427's ROA % is ranked worse than 58.25% of 1988
companies
in the Consumer Packaged Goods industry
Industry Median: 3.24
vs TSE:7427: 2.07
Echo Trading Co (TSE:7427) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Echo Trading Co ROA % Related Terms
Echo Trading Co ROA % Historical Data
* Premium members only.
The historical data trend for Echo Trading Co's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Echo Trading Co's ROA % distribution charts can be found below:
* The bar in red indicates where Echo Trading Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Echo Trading Co (TSE:7427) has a ROA % of 1.65% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Echo Trading Co and its competitors. This is 14% above median its historical median of 1.45. According to the industry distribution chart, Echo Trading Co ranks #1158 out of 1988 companies in the Consumer Packaged Goods industry, placing it in the top 58.2%.
Is Echo Trading Co's ROA % too high?
Echo Trading Co's current ROA % of 1.65% is 14% above median its 10-year median of 1.45. The Consumer Packaged Goods industry median ROA % is 3.24. Echo Trading Co's value of 1.65% is 49.1% below this industry median. Based on the distribution chart, Echo Trading Co ranks #1158 out of 1988 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Echo Trading Co's ROA % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Echo Trading Co ranks #1158 out of 1988 companies for ROA %. This places Echo Trading Co in the lower half of its industry. The industry median ROA % is 3.24. Echo Trading Co's value of 1.65% is 49.1% below this benchmark. While the company's 10-year median is 1.45 vs. the industry median of 3.24, 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 ROA % for a Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.24, based on 1,988 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Echo Trading Co's current ROA % of 1.65% is 49.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Echo Trading Co and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echo Trading Co's current ROA % is 1.65%, which is 14% above median its own 10-year median of 1.45. 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921.42, compared to a current price of 円836.00 — trading 9.3% below its estimated fair value. The current ROA % is 1.65%, which is 14% above median its 10-year median of 1.45 and 49.1% below the Consumer Packaged Goods industry median of 3.24. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Echo Trading Co (TSE:7427), the current ROA % is 1.65% 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836.00 is trading 9.3% below its estimated GF Value™ of 円921.42.
GuruFocus considers Echo Trading Co to be Fairly Valued.
Key valuation signals for TSE:7427:
ROA %: 1.65% (14% above median its 10-year median of 1.45)
GF Value™: 円921.42 vs. price of 円836.00 (9.3% below fair value)
Industry Position: 49.1% below the Consumer Packaged Goods median (#1158 of 1988)
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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