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.

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

The Good Case Companies Had More Opportunities to Reflect on Cost of Capital and Return on Capital

Solving the Issue of Increasing Trading Liquidity in Japanese Stocks Is More Than Analyst Coverage..

ROE and Valuations of Japanese Stocks Will Improve Through Dissolution of Parent-Subsidiary Listings

Is the Rise in TOPIX Anticipating the Actual Rise in ROE+DOE?

Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding

TSE's Request for Disclosure About Parent-Subsidiary Listings Is an Improvement, Not a Solution

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>The pace of share repurchases in 2023 (+1.4%, YoY) is not sufficient compared to the increase in corporate profits, and there is much room for reconsideration of cash allocations.</li>
<li>In Japan, where many manufacturers keep CapEx within the depreciation, it's more important to verify whether shareholder return is appropriate on a cash basis rather than a net income basis.</li>
<li>Companies that fail to formulate measures to generate ROE that exceeds the cost of capital in accordance with TSE requests are not able to achieve an appropriate cash allocation.</li>
</ul>


The pace of share repurchases in 2023 (+1.4%, YoY) is not sufficient compared to the increase in corporate profits, and there is much room for reconsideration of cash allocations.
In Japan, where many manufacturers keep CapEx within the depreciation, it's more important to verify whether shareholder return is appropriate on a cash basis rather than a net income basis.
Companies that fail to formulate measures to generate ROE that exceeds the cost of capital in accordance with TSE requests are not able to achieve an appropriate cash allocation.


Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis

TSE Tokyo Price Index TOPIX

Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis