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.

Increasing Profitability to Gain Support from Overseas Investors Is a Condition for Higher Valuation

Engagement Keeps Widening the Profitability Gap Between the Top and Bottom Companies in Market Cap

Only Seriousness of Shareholder Return Can Judge Change in Management in 1 Year After TSE's Request

A Market with Small Value Stocks and Investment Opportunities Due to Delisting, Although Taking Time

What Happens to the Effectiveness of TSE Requests when They Become Effort Obligations?

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Companies that increased Tobin'sQ have further increased Tobin'sQ due to continued growth in ROE and ROA. They have room to further improve return on capital by reducing cash on hand.</li>
<li>Companies with lower Tobin's Q may include small-cap stocks that are increasingly undervalued because they have relatively high ROE and ROA but are not covered by overseas investors.</li>
<li>Over the past year, few companies raised their valuations based solely on expectations of P/B bottoming-out without improving profitability, and IR activities alone have had limited effect in boosting valuations.</li>
</ul>


Companies that increased Tobin'sQ have further increased Tobin'sQ due to continued growth in ROE and ROA. They have room to further improve return on capital by reducing cash on hand.
Companies with lower Tobin's Q may include small-cap stocks that are increasingly undervalued because they have relatively high ROE and ROA but are not covered by overseas investors.
Over the past year, few companies raised their valuations based solely on expectations of P/B bottoming-out without improving profitability, and IR activities alone have had limited effect in boosting valuations.


Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE's Request

TSE Tokyo Price Index TOPIX

Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE's Request