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 Key Is to Achieve Sustainable Growth Through Continuous Business Portfolio Review

Since Cash on Hand Will Not Decrease in FY2024, Shareholder Returns Remain a Hot Topic

Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors

Cash on Hand Has Built up to a Level Where Small Shareholder Returns Are No Longer Sufficient

The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>While cash flow has improved, companies haven't found promising investment opportunities. Continuation of a rigid dividend policy is another factor that further increases cash on hand.</li>
<li>Given that the already high level of cash on hand is expected to build further in the current fiscal year, there is room to increase shareholder returns considerably.</li>
<li>For many companies, it is not easy to find new sources of investment other than through M&amp;A, and shareholder returns are the most effective way to reduce cash.</li>
</ul>


While cash flow has improved, companies haven't found promising investment opportunities. Continuation of a rigid dividend policy is another factor that further increases cash on hand.
Given that the already high level of cash on hand is expected to build further in the current fiscal year, there is room to increase shareholder returns considerably.
For many companies, it is not easy to find new sources of investment other than through M&amp;A, and shareholder returns are the most effective way to reduce cash.


For the Time Being, Stronger Shareholder Returns Are an Incentive for the Stock Price to Rise

TSE Tokyo Price Index TOPIX

For the Time Being, Stronger Shareholder Returns Are an Incentive for the Stock Price to Rise