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.

The Essence of the Matter Is the Low Return on Cash Flow Generated by the Company's Business

Higher P/E Is Driver for This Stock Rally. Profit Growth Is Necessary for Further Stock Rally

It Is Time to Identify True Value and Growth Stocks Rather than High and Low P/Bs

Expanding Nominal Profits from Shift from Deflation Rather than P/B Is the Driver of Stock Prices

TSE Should Shift Its Business Model from Growing Number of Listed Companies to Expanding Market Cap

The Key Is to Be Able to Use Cash on Hand Effectively in the Future

Amid Slow ROE Improvement, Calls for Stronger Shareholder Returns Will Become Even Stronger

Growth in Corporate Value over Longer Term Is More Important than Meeting Immediate Listing Criteria

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Metrical's past analysis also shows that a company's capital allocation to investors is effective in raising valuations, so a proper allocation between investment and shareholder return is a baseline.</li>
<li>The correlation analysis between TOPIX and nominal GDP suggests that the shift from deflation to inflation has triggered overseas investors to focus on the further expansion of company profits.</li>
<li>While average P/B and ROE have remained flat, the rise in P/E has boosted the stock recently. This suggests that further share price appreciation will require an increase in profits.</li>
</ul>


Metrical's past analysis also shows that a company's capital allocation to investors is effective in raising valuations, so a proper allocation between investment and shareholder return is a baseline.
The correlation analysis between TOPIX and nominal GDP suggests that the shift from deflation to inflation has triggered overseas investors to focus on the further expansion of company profits.
While average P/B and ROE have remained flat, the rise in P/E has boosted the stock recently. This suggests that further share price appreciation will require an increase in profits.


Companies Should Show a Path to Accelerated Profit Growth Rather than Shareholder Returns

TSE Tokyo Price Index TOPIX

Companies Should Show a Path to Accelerated Profit Growth Rather than Shareholder Returns