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.

Stock Splits Meet Many Companies' Needs to Increase the Shareholdings of Individual Investors

Attention Should Be Paid to Whether the Pseudo Cross-Shareholdings Will Hinder Management Reform

The Key to Japanese Equity Outperformance Is a Step Beyond Shareholder Returns

Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis

Improved Governance Tends to Raise Reason to Buy Japanese Stocks when Corporate Profit Is Lackluster

Transition to Regional Stock Exchange Means Continued Unhappy History for Shareholders

Shareholder Benefits to Return Amid Rise in Foreign Ownership and Dissolution of Cross-Shareholdings

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>While the company's attitude toward shareholder returns has been positive, the 11% dividend increase is not expected to reduce cash on hand by much.</li>
<li>In a condition where so much cash has accumulated, it's not a bad idea to use DOE as a guide to avoid accumulating cash on hand above a certain level.</li>
<li>Since FY3/2025 profits will grow in non-manufacturers, which has relatively low profit margin, the overall profit margin of companies won't increase. Therefore, unless assets are reduced significantly, ROE will soft.</li>
</ul>


While the company's attitude toward shareholder returns has been positive, the 11% dividend increase is not expected to reduce cash on hand by much.
In a condition where so much cash has accumulated, it's not a bad idea to use DOE as a guide to avoid accumulating cash on hand above a certain level.
Since FY3/2025 profits will grow in non-manufacturers, which has relatively low profit margin, the overall profit margin of companies won't increase. Therefore, unless assets are reduced significantly, ROE will soft.


Significant Share Buybacks Are Key to Improving Profitability of Capital

TSE Tokyo Price Index TOPIX

Significant Share Buybacks Are Key to Improving Profitability of Capital