Improving Share Price and PBR Through Management Focused on the Cost of Capital
First written in FY2023. 2 of 3 entries say "Reframed", first in FY2024. Latest entry: FY2025.
Toho Zinc moved to the "Worse" side of this theme in 2024, 2 years before the typical company in this theme (2026).
3 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「To return to a position in which dividends can be paid at an early date, the company will complete the withdrawal from and restructuring of unprofitable businesses while strengthening its core and growth businesses and expanding earnings.」
The focus shifted from the previous fiscal year's market valuation targets of returning to a D/E ratio of 1x and achieving a PBR of 1 or above to business revitalization, including a return to a position in which dividends can be paid, and rebuilding the earnings base. - FY2024ReframedAnnual report
「The company has substantially reviewed the business revitalization measures targeted under its 2030 Vision and decided to formulate and implement a fundamental business revitalization plan that can earn the trust of stakeholders, with support from external specialists.」
The previous fiscal year's market valuation targets of returning to a D/E ratio of 1x and achieving a PBR of 1 or above receded from prominence, while the strategic focus shifted to a fundamental business revitalization plan involving external specialists. - FY2023First statedAnnual report
「The company will use stable free cash flow generated through business portfolio restructuring as a source of debt repayment, aim to return to a D/E ratio of 1x, and secure flexibility for shareholder returns by generating surplus cash commensurate with its cost of capital. Through these measures, the company will work to ultimately improve the share price and PBR, with the aim of maintaining PBR at 1 or above.」
As a challenge, the company identified escaping from a low PBR and explicitly stated financial and market valuation targets for the first time: returning to a D/E ratio of 1x, generating surplus cash commensurate with the cost of capital, and maintaining PBR at 1 or above.