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.

To Raise a Company's ROE and OP Margin, Significant Restructuring of Business Portfolio Is Necessary

Share Buyback Likely to Grow over Growth Investment Hoped for by Corporate Governance Code Revision

Financial Institutions Should Accelerate the Reduction of Their Policy Shareholdings

Recent Stock Price Rise May Be Due to Expectation for Greater Shareholder Returns Rather than Growth

Do Managers Who Give Small Amounts of Shareholder Return to Have Other Objectives?

Companies Still Prioritize Compliance with the TSE over Consideration for Shareholders Interest

Investors Are Less Interested in Companies that Generate Little Cash Despite Shareholder Returns

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Although Net Profit Margin has been the most highly correlated of 3 components of ROE, improvements in Asset Turnover and Equity Ratio driven by share buybacks are now drawing attention.</li>
<li>In FY2026, once the temporary impact of U.S. tariffs has run its course, companies engaged in global business are expected to more aggressively repurchase their own shares alongside recovering profits.</li>
<li>The ROE derived from the aggregate profits and net assets of all companies differs by over 1% from the average ROE of individual companies, and this gap won't be narrow.</li>
</ul>


Although Net Profit Margin has been the most highly correlated of 3 components of ROE, improvements in Asset Turnover and Equity Ratio driven by share buybacks are now drawing attention.
In FY2026, once the temporary impact of U.S. tariffs has run its course, companies engaged in global business are expected to more aggressively repurchase their own shares alongside recovering profits.
The ROE derived from the aggregate profits and net assets of all companies differs by over 1% from the average ROE of individual companies, and this gap won't be narrow.


TSE Tokyo Price Index TOPIX

What the Two ROEs Mean