Improving Market Valuation Based on Capital Profitability
First written in FY2023. 2 of 3 entries say "Advanced", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2020: 1 of 12 companies on the "Worse" side.
42 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Against the group’s recognized cost of equity of approximately 8%, ROE for the consolidated fiscal year was 13.3%. The company expects to maintain ROE above 10% from the fiscal year ending March 2027 onward and secure a return on capital well above the cost of equity. In addition, the company’s share price at the end of the consolidated fiscal year had risen substantially from the end of the previous consolidated fiscal year, and the company recognizes that profit growth and shareholder returns linked to business performance were favorably assessed by the equity market.」
With the cost of equity recognized as approximately 8%, the company achieved ROE of 13.3% and expects ROE to remain above 10% from the fiscal year ending March 2027 onward. Improved market valuation through profit growth, shareholder returns, disclosure and dialogue was presented as a specific result. - FY2024AdvancedAnnual report
「As a result of promoting measures and investments aimed at sustainable growth under the Medium-Term Management Plan (2021–2023), the company secured profit exceeding its target, while ROE also exceeded the target of 10%. The company also recognizes that market valuation is improving, partly due to enhanced disclosure and more extensive dialogue with investors and the market. The group’s cost of equity is recognized as approximately 7–8%.」
The company described achievement of the medium-term management plan’s profit and ROE targets and improving market valuation through enhanced disclosure and investor dialogue. The cost of equity is recognized as approximately 7–8%. - FY2023First statedAnnual report
「In recent years, ROE has consistently exceeded 10%, securing a return on capital above the cost of capital, but the company has not received sufficient recognition from the equity market. The company recognizes that appropriately communicating the growth potential of the group to the equity market and improving market valuation are challenges.」
Against a backdrop of ROE of at least 10% and a return on capital exceeding the cost of capital, improving recognition by the equity market was described independently as a management issue for the first time. Measures include clarifying the growth strategy, enhancing disclosure of environmental and human capital information, engaging in dialogue with investors and strengthening shareholder returns.