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.

The Strategy Is More Important than Whether the Mid-Term Business Plan and the Actual Are Blurred

Companies Should Consider All Options, Not Just Maintaining Their Listing

Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies

The Situation Is Different for REITs that Rely on Capital Increase, Despite the Same Low P/B Issue

Shareholder Activism Plays a Significant Role in Companies that Are Slow to Change

Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE's Request

In Order to Avoid Scandals in the Future, Management Must Take Leadership in Changing Mindsets

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>


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.


Investors Are Disappointed that ROE Is Not Improving, yet Companies Can't Disclose to Improve It

TSE Tokyo Price Index TOPIX

Investors Are Disappointed that ROE Is Not Improving, yet Companies Can't Disclose to Improve It