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.

Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement

Challenges in Using Cash, Even in Companies with 30%+ Female Board Members, with Excellent Practices

Few Companies Have Started to Move Yet, but Can They Raise R & D Investment to Regain Pricing Power?

Corporate Governance in Japan Is Improving, but Has yet to Take Steps to Create Value

Isn't It Not Strong Enough to Raise ROE by Higher Profit Margin Due to Escape from Deflation?

Governance Improvement in 2023 Was Modest but Saved by a Rise in % Woman Board Members

How Long Will the Escape from Deflation Be a Greater Factor in Stock Price Rises than ROE?

In Correlation with TOPIX, Nominal GDP Has Become Even Higher, While P/B Has Been Scarce Since 2020

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Since "profitability of capital" like ROE or ROIC cannot create value in mid-to-long-term without improvement, the fact that ROE has stalled is a cause for concern for future stock prices.</li>
<li>The slow growth in Net Profit Margin and the sluggish improvement in Asset Turnover and Financial Leverage indicate that it is still holding too much cash, cross-held shares, etc. </li>
<li>Nearly half of all listed companies are companies with major shareholders of 20% or more, which is an obstacle to improving corporate governance.</li>
</ul>


Since "profitability of capital" like ROE or ROIC cannot create value in mid-to-long-term without improvement, the fact that ROE has stalled is a cause for concern for future stock prices.
The slow growth in Net Profit Margin and the sluggish improvement in Asset Turnover and Financial Leverage indicate that it is still holding too much cash, cross-held shares, etc. 
Nearly half of all listed companies are companies with major shareholders of 20% or more, which is an obstacle to improving corporate governance.


The Solution to Better Corporate Governance Is to Reduce the # of Companies with Large Shareholders

TSE Tokyo Price Index TOPIX

The Solution to Better Corporate Governance Is to Reduce the # of Companies with Large Shareholders