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.

Can Many Companies that over Years Could Not Suddenly Transform Themselves Thanks to TSE Requests?

Changing Japanese Companies Is Not TSE Request but Inflation that Changes Mindset of All Managers

ROE up Modestly, but ROE Plus DOE Is Expected to Reach a Record High This Fiscal Year

Concrete Measures to Raise ROA Are Needed to Achieve Medium-Term Stock Price Outperformance

Expecting Fewer Refusals to Disclose Management Issues and More Positive Discussions with Management

What Should a Japanese Company Do to Raise Profit Margin, a Prerequisite for Higher ROE?

Change in Attitude of Domestic Institutional Investors Is Key to Approval of Shareholder Proposal

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Even though OP Margin has been stagnant, NP Margin has improved due to the corporate tax rate cut, and the increased free cash flow has been less directed to investments.</li>
<li>The fact that OP Margin didn’t rise much while personnel and R&amp;D costs were curbed and there wasn't much investment simply implies a lower gross margin in the core business.</li>
<li>With ROE growth sluggish and cash accumulating, it's reasonable that investors demand further shareholder returns. If asset turnover declines while OP Margin slows, there's little reason to hold cross-held shares.</li>
</ul>


Even though OP Margin has been stagnant, NP Margin has improved due to the corporate tax rate cut, and the increased free cash flow has been less directed to investments.
The fact that OP Margin didn’t rise much while personnel and R&amp;D costs were curbed and there wasn't much investment simply implies a lower gross margin in the core business.
With ROE growth sluggish and cash accumulating, it's reasonable that investors demand further shareholder returns. If asset turnover declines while OP Margin slows, there's little reason to hold cross-held shares.


Shouldn't Shareholders Raise Voice for a Company that Is Building up Cash While Its ROE Is Sluggish?

TSE Tokyo Price Index TOPIX

Shouldn't Shareholders Raise Voice for a Company that Is Building up Cash While Its ROE Is Sluggish?