PBR Improvement with an Awareness of Cost of Capital and Share Price
First written in FY2024. 2 of 5 entries say "Advanced", first in 2026-08-31. 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
「Evaluate investment profitability using a common format based on ROIC, NPV, IRR, payback period, and other metrics」
PBR improved from 0.29x in the previous fiscal year to 0.30x, and ROE improved from negative 0.9% to 2.13%, but the company remains below its shareholders’ equity cost of capital of approximately 8%–10%. The company identified evaluation of investment projects based on ROIC, NPV, IRR, and payback period, as well as post-investment reviews, as specific improvement measures. - FY2025WorsenedAnnual report
「Our PBR has remained below 1x, standing at 0.29x as of the end of June 2025, well below 1x. An analysis of the current situation shows that, in our existing businesses, profitability has stagnated, with an operating margin of 0.8%, due to deterioration in the external environment, including intensifying price competition and higher costs. In addition, capital efficiency has deteriorated, with ROE at -0.9%, due to a decline in earnings power and the recording of a net loss attributable to impairment losses.」
PBR deteriorated from 0.42x in the previous fiscal year to 0.29x, the operating margin from 3.5% to 0.8%, and ROE from 4.4% to negative 0.9%. The company continues to implement improvement measures, including improving the efficiency of existing businesses, growth investment, new businesses, investor engagement, and capital allocation. - FY2024First statedAnnual report
「Our PBR has remained below 1x, standing at 0.42x as of the end of June 2024, well below 1x. An analysis of the current situation shows that, in our existing businesses, profitability has stagnated, with an operating margin of 3.5%, due to deterioration in the external environment, including intensifying price competition and higher costs. In addition, although shareholders’ equity has increased through the accumulation of retained earnings, the scale of our operations has remained at previous levels, resulting in deteriorating capital efficiency, with ROE at 4.4%. [Specific initiatives] 1) Improve production efficiency by introducing labor-saving measures and DX 2) Strategically review the business portfolio 3) Strengthen pricing power by reinforcing customer relationships 4) Invest in new fastening components for construction and civil engineering applications other than automobiles 5) Pursue new businesses and newly developed products 6) JV business with India Super Screw Co. 10) Actively participate in company briefings for institutional and individual investors 12) Review the dividend policy, including setting a minimum dividend per share」
The company identified PBR of 0.42x, an operating margin of 3.5%, and ROE of 4.4% as current issues and, for the first time, disclosed PBR improvement as a separate theme, addressing it through measures including improving the efficiency of existing businesses, growth investment, new businesses, investor engagement, and a review of its dividend policy.