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Manila Electric (MAEOY)
:MAEOY
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Manila Electric Company
(OTC:MAEOY)
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Rating:77Outperform
Price Target:
$22.50
▲(14.80% Upside)
Manila Electric Company demonstrates strong financial performance with robust revenue growth and improved profitability, despite liquidity challenges. Technical indicators show a positive trend, while valuation metrics suggest the stock is fairly valued with an attractive dividend yield. The earnings call further supports a positive outlook with significant growth in power generation and operational improvements.
Manila Electric Company (MAEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.13B
Dividend Yield4.78%
Average Volume (3M)0.00
Price to Earnings (P/E)13.0
Beta (1Y)0.24
Revenue Growth4.05%
EPS Growth11.88%
CountryUS
Employees5,815
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.41
Shares Outstanding563,546,260
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Manila Electric Company Business Overview & Revenue Model
Company DescriptionThe Manila Electric Company (MAEOY) is the largest electric power distribution utility in the Philippines, primarily serving Metro Manila and surrounding areas. Established in 1903, the company operates in the energy sector, focusing on the distribution of electricity to residential, commercial, and industrial customers. MAEOY is engaged in various activities related to electricity supply, including the procurement of power from generation companies, infrastructure development, and customer service.
How the Company Makes MoneyMAEOY generates revenue primarily through the distribution of electricity to its customers. The company earns money by charging a regulated distribution rate, which includes costs related to the delivery of electricity, maintenance of infrastructure, and operational expenses. Key revenue streams include residential, commercial, and industrial electricity sales, as well as ancillary services and related products. Additionally, MAEOY benefits from partnerships with generation companies for power procurement, and it may also engage in demand-side management programs, which can further enhance its earnings. Regulatory frameworks set by the Energy Regulatory Commission (ERC) also play a significant role in determining the pricing structure and ensuring a stable revenue base for the company.
Manila Electric Company Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
Meralco's earnings call presented a strong financial performance with significant growth in power generation and improvements in operational reliability. However, challenges such as a slight decline in energy sales and regulatory adjustments were noted. The company's sustainability efforts and safety records were highlighted positively.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Meralco reported a 14% increase in consolidated core net income (CCNI) to PHP 40 billion for the first nine months of 2025. The power generation segment grew by 63%, contributing PHP 14.7 billion to CCNI.
Power Generation Success
The LNG business contributed PHP 10.9 billion with significant energy outputs from Chromite Gas and PacificLight. MGen's renewables delivered 557-gigawatt hours, up 15% driven by new solar plants.
Operational Reliability
Meralco achieved a 0.26 percentage point improvement in system loss, and SAIFI and SAIDI showed significant improvements, indicating fewer and shorter power interruptions.
Recognition in Sustainability
Meralco was included in the FTSE4Good Index for the fifth consecutive year and improved its Bloomberg Gender Equality score from 4.1 to 4.6.
MGen's Growth and Safety
MGen achieved over 65 million safe man-hours and reported a 75% increase in total energy delivered compared to the previous year.
Negative Updates
Slight Decline in Energy Sales
Energy sales dropped by 0.4% to 40,719 gigawatt hours due to cooler weather and high vacancies in office and condo spaces from the POGO exit.
Impact of Unfavorable Weather
The energy sales decline was further impacted by cooler temperatures and typhoon disruptions, resulting in increased government and class suspensions.
Distribution Revenue Decrease
Distribution revenue decreased due to regulatory reset fee adjustments starting February 2025.
Challenges with Indigenous Gas Prioritization
Uncertainty surrounds the impact of DOE's circular on prioritizing indigenous natural gas over imported LNG, affecting future procurement strategies.
Company Guidance
In the third quarter and nine-month results briefing for 2025, Meralco reported a fiscal performance characterized by robust growth in its power generation business, which contributed PHP 14.7 billion to the consolidated core net income (CCNI), a substantial 63% increase from the previous year. This sector now constitutes 37% of the CCNI. The distribution utility (DU) business remained the largest contributor, accounting for 55% of the PHP 40 billion CCNI, with an 8% growth to PHP 21.9 billion. The consolidated reported net income rose by 9% to PHP 36.8 billion, while consolidated revenues saw a 5% increase to PHP 371.8 billion, driven by higher pass-through generation and transmission charges. Capital expenditures totaled PHP 78.8 billion, primarily for solar power plant developments and distribution network improvements. Despite a slight decline in energy sales due to cooler weather and increased vacancies in office spaces, Meralco managed a 14% rise in core EBITDA to PHP 67.2 billion, indicating a strong operational performance across its business segments.Manila Electric Company Financial Statement Overview
Summary
Manila Electric Company shows strong revenue growth and improved gross profit margins, reflecting efficient operations. The balance sheet indicates reduced leverage and a solid equity position, contributing to financial stability. However, the negative free cash flow and decreased cash flow efficiency pose liquidity challenges. Overall, the company maintains strong financial health, with improvements in profitability and stability, yet needs to address cash flow management.Income Statement
The company demonstrated strong revenue growth, with a 6.03% increase from 2023 to 2024. Gross profit margin improved from 19.40% in 2023 to 21.07% in 2024, indicating efficient cost management. However, the EBIT margin for 2024 was 0%, affecting overall profitability. The net profit margin increased from 8.57% to 9.75%, reflecting improved net income performance.85
Very Positive
Balance Sheet
The debt-to-equity ratio improved from 0.82 in 2023 to 0.65 in 2024, indicating reduced leverage and financial risk. The equity ratio increased slightly from 20.86% to 23.41%, suggesting a stable financial position with a good proportion of equity financing. Return on equity (ROE) improved from 31.08% to 31.72%, showing efficient use of shareholder equity to generate profits.78
Positive
Cash Flow
The free cash flow turned negative in 2024, indicating challenges in cash flow generation despite positive operating cash flow. The operating cash flow to net income ratio decreased from 1.52 in 2023 to 0.92 in 2024, suggesting less efficient cash generation from operations relative to net income. The free cash flow to net income ratio turned negative, highlighting potential liquidity management issues.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 478.10B | 470.36B | 443.61B | 7.82B | 6.46B | 5.55B |
| Gross Profit | 96.67B | 99.12B | 86.07B | 641.84M | 922.68M | 846.20M |
| EBITDA | 81.21B | 79.52B | 67.77B | 771.13M | 52.01B | 45.07B |
| Net Income | 47.05B | 45.86B | 38.02B | 521.47M | 476.68M | 328.95M |
Balance Sheet | ||||||
| Total Assets | 753.92B | 617.96B | 586.04B | 9.32B | 9.48B | 8.13B |
| Cash, Cash Equivalents and Short-Term Investments | 101.10B | 93.31B | 90.49B | 1.32B | 1.42B | 1.23B |
| Total Debt | 203.46B | 93.42B | 100.66B | 1.86B | 1.78B | 835.92M |
| Total Liabilities | 554.07B | 432.08B | 418.72B | 7.09B | 7.42B | 6.45B |
| Stockholders Equity | 153.92B | 144.60B | 122.30B | 1.97B | 1.87B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | -36.83B | -2.50B | 29.04B | ― | 399.48M | 221.77M |
| Operating Cash Flow | 41.74B | 42.01B | 57.97B | 568.83M | 951.99M | 636.24M |
| Investing Cash Flow | -132.65B | -18.76B | 1.57B | ― | ― | ― |
| Financing Cash Flow | 95.69B | -21.59B | -32.60B | ― | 224.69M | ― |
Manila Electric Company Technical Analysis
Positive
19.60
Price Trends
19.02
Positive
18.89
Positive
18.52
Positive
Market Momentum
0.26
Negative
55.61
Neutral
59.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAEOY, the sentiment is Positive. The current price of 19.6 is above the 20-day moving average (MA) of 19.37, above the 50-day MA of 19.02, and above the 200-day MA of 18.52, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 59.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAEOY.
Manila Electric Company Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $11.13B | 13.02 | ― | 4.78% | 4.05% | 11.88% | |
| ― | $24.40B | 21.27 | 6.01% | 6.10% | 6.41% | 37.23% | |
| ― | $24.40B | 19.84 | 6.01% | 5.93% | 6.41% | 37.23% | |
| ― | $17.78B | 21.26 | 8.55% | 3.46% | 3.28% | 13.56% | |
| ― | $8.89B | 17.70 | 10.69% | 3.83% | 18.03% | 29.46% | |
| ― | $10.68B | 18.43 | 8.90% | 4.06% | 7.47% | -8.53% | |
| ― | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
MAEOY
Manila Electric Company
19.72
3.50
21.58%
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8.63%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
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74.92%
EVRG
Evergy
77.27
19.83
34.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.