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.

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

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

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

The Key Is to Achieve Sustainable Growth Through Continuous Business Portfolio Review

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

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>While cash on hand is high, many companies have not been able to improve their return on capital, so more companies are expected to announce shareholder returns, including share repurchases.</li>
<li>The change in awareness of companies can be attributed largely to the changing environment of high foreign ownership and TSE requests.</li>
<li>Since it takes time to raise the profit margin, and it's not easy to identify CapEx opportunities, the measures to improve ROE will reduce policy shareholdings and cash on hand.</li>
</ul>


While cash on hand is high, many companies have not been able to improve their return on capital, so more companies are expected to announce shareholder returns, including share repurchases.
The change in awareness of companies can be attributed largely to the changing environment of high foreign ownership and TSE requests.
Since it takes time to raise the profit margin, and it's not easy to identify CapEx opportunities, the measures to improve ROE will reduce policy shareholdings and cash on hand.


While Raising Profit Margin Isn't Easy, the Focus Is on Reducing Policy-Shares and Cash on Hand

TSE Tokyo Price Index TOPIX

While Raising Profit Margin Isn't Easy, the Focus Is on Reducing Policy-Shares and Cash on Hand