Management focused on the cost of capital and share price using ROE and PER
First written in FY2025. 1 of 2 entries say "Advanced", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2020: 16 of 75 companies on the "Worse" side.
42 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「To obtain a more precise understanding of capital efficiency and returns on invested capital, the company introduced a new management-control framework using return on invested capital (ROIC) and weighted average cost of capital (WACC) from April 2026.」
In addition to the conventional use of ROE and PER, the company introduced management control using ROIC and WACC from April 2026, and specified its policy of evaluating businesses and investment projects against the cost of capital and managing them quarterly. - FY2025First statedAnnual report
「The group regards enhancing corporate value over the medium to long term as its most important management priority and is promoting management that is conscious of its cost of capital and share price. The company uses return on equity (ROE) as a key indicator when evaluating corporate profitability and capital efficiency, and considers it important to generate profits at levels exceeding the cost of capital. It also places importance on the price-to-earnings ratio (PER), which indicates investors' evaluation in the stock market. Analyzing ROE and PER together helps identify strategic issues for enhancing corporate value.」
The company disclosed for the first time its policy of using ROE as a key indicator of profitability and capital efficiency and PER as an indicator of market valuation, while aiming to generate profits above the cost of capital and sustainably increase returns to stakeholders.