In today’s briefing:
- Investors Are Disappointed that ROE Is Not Improving, yet Companies Can’t Disclose to Improve It
Investors Are Disappointed that ROE Is Not Improving, yet Companies Can’t Disclose to Improve It
- Companies with high stock price valuations are often characterized by high foreign shareholdings and high return on capital, and valuations cannot be raised simply by disclosure without improving profitability.
- Companies that proactively disclosed to TSE requests were those with large market capitalization and high foreign ownership. They usually try to use their cash effectively for investment and shareholder returns.
- Raising profit margin is the best way to improve capital profitability. It’s clear that challenge lies in restructuring the business portfolio and reorganizing the industry, which few companies could do.
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