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.

Policy Shareholdings, if Reduced, Should Be Used for Profitable Investments

Valuations Will Rise when the Management Changes To "Maximizing Shareholder Interest"

ROE Isn't Rising Because Managers Don't Think of the Value of the Company and Meaning of the Listing

Do Not Miss the Movement of Deemed Cross-Held Shares, Which Are the Last Resort of Cross-Held Shares

Companies with High Frequency of Share Retirements Tend to Have a High Awareness of Cash Allocation

Don't Forget to Check for Deemed Shares Even if a Company Have Reduced Its Policy Shareholdings

Might Consider Creating Mechanism to Allocate Companies' Cash in Cash Cow to Companies that Can Grow

To Change a Company that Didn't Change when Activist Investors Asked for Solutions to Their Issues

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>It’s difficult to justify the low ROE based on criteria for judging reasonableness of NSK's policy-shareholdings: "NSK will reduce policy-shareholdings that aren't rationale for increasing corporate value over mid-to-long term.</li>
<li>For NSK with a market capitalization of just under 500 billion yen, 50.1 billion yen in policy stockholdings plus 128.3 billion yen in retirement benefit trust shares is too much.</li>
<li>Based on past performance trends, the ROE is not expected to rise all at once as profits recover, but the company may continue to raise shareholder returns through share repurchases.</li>
</ul>


It’s difficult to justify the low ROE based on criteria for judging reasonableness of NSK's policy-shareholdings: "NSK will reduce policy-shareholdings that aren't rationale for increasing corporate value over mid-to-long term.
For NSK with a market capitalization of just under 500 billion yen, 50.1 billion yen in policy stockholdings plus 128.3 billion yen in retirement benefit trust shares is too much.
Based on past performance trends, the ROE is not expected to rise all at once as profits recover, but the company may continue to raise shareholder returns through share repurchases.


Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings

NSK Ltd

Share Buyback Are Likely Due to Reduction of Shares in Retirement Benefit Trusts and Policy Holdings