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.

Alignment of Management and Shareholder Interests Could Be the Beginning of Happiness

Companies Are Finally at the Starting Line of Taking the First Steps to Improve ROE

Investors Will Again Demand Concrete Measures to Raise ROE and Boost Shareholder Returns in FY3/2025

ROE up Modestly, but ROE Plus DOE Is Expected to Reach a Record High This Fiscal Year

It Is Time to Identify True Value and Growth Stocks Rather than High and Low P/Bs

Amid Slow ROE Improvement, Calls for Stronger Shareholder Returns Will Become Even Stronger

Companies Should Show a Path to Accelerated Profit Growth Rather than Shareholder Returns

Expanding Nominal Profits from Shift from Deflation Rather than P/B Is the Driver of Stock Prices

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Cash usage and return targets should be presented to investors along with cost of capital, but few companies can successfully envision future design due to poor planning for growth investments.</li>
<li>Since there’s a significant positive correlation between ROE+DOE and TOPIX, the company should optimize its cash allocation by demonstrating enhanced shareholder returns until it can design a growth investment plan.</li>
<li>Ajinomoto, which provided cost of capital projections and ROIC targets by business segment, should be commended for its constant communication with investors seeking better disclosure in good times and bad.</li>
</ul>


Cash usage and return targets should be presented to investors along with cost of capital, but few companies can successfully envision future design due to poor planning for growth investments.
Since there’s a significant positive correlation between ROE+DOE and TOPIX, the company should optimize its cash allocation by demonstrating enhanced shareholder returns until it can design a growth investment plan.
Ajinomoto, which provided cost of capital projections and ROIC targets by business segment, should be commended for its constant communication with investors seeking better disclosure in good times and bad.


Return Targets and Use of Cash Should Be Disclosed Together with Cost of Capital

TSE Tokyo Price Index TOPIX

Return Targets and Use of Cash Should Be Disclosed Together with Cost of Capital