Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Maybe Management Is Finally Becoming Aware of the Cost of Listing

To Raise ROE, Breaking Away from Familiar Relationships and Creating Tension in Management Is Key

ROE Trends Do Not Seem to Indicate a Significant Change in Management's Mindset?

Determining the Cause of the Sluggish ROE Growth Is More Important for Future ROE Increases

What Changes in the External Environment Are Changing the Mindset of Managers?

Is the Rise in TOPIX Anticipating the Actual Rise in ROE+DOE?

It's Unreasonable to Hope for Higher Stock Prices While Being Reluctant to Disclose Information

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Since the ROE has been hovering around the 9% ceiling, the challenge is that few companies could present future outlook convincing enough to raise expectations of sustainable ROE growth.</li>
<li>Since stable BPS has higher correlation with TOPIX than EPS, investors trust a company that accumulates cash flow in shareholders' equity to sustainably increase profits than to temporarily increase profits.</li>
<li>Since it’s been confirmed that Tobin's Q of companies with more cash on hand is higher, the stock valuations of companies with higher cash flow margins tend to be higher.</li>
</ul>


Since the ROE has been hovering around the 9% ceiling, the challenge is that few companies could present future outlook convincing enough to raise expectations of sustainable ROE growth.
Since stable BPS has higher correlation with TOPIX than EPS, investors trust a company that accumulates cash flow in shareholders' equity to sustainably increase profits than to temporarily increase profits.
Since it’s been confirmed that Tobin's Q of companies with more cash on hand is higher, the stock valuations of companies with higher cash flow margins tend to be higher.


A Market with a Low Average ROE Favors Valuations for Companies with More Reliable Cash Flow

TSE Tokyo Price Index TOPIX

A Market with a Low Average ROE Favors Valuations for Companies with More Reliable Cash Flow