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Manila Electric Company
(OTC:MAEOY)
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Rating:59Neutral
Price Target:
$14.00
▼(-7.83% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by financial risks (persistent negative free cash flow and materially higher leverage) and weak technical momentum (price below all key moving averages with negative MACD). Valuation is a relative positive, supported by a moderate P/E and a strong dividend yield.
Positive Factors
Regulated utility franchise
Meralco operates an essential-service distribution network with a regulated franchise and a diversified customer base. This business model supports recurring demand and provides an established framework for recovering network costs and earning an allowed return on invested utility assets over time.
Negative Factors
Higher leverage
The sharp increase in debt has reduced balance-sheet flexibility and makes Meralco more exposed to funding costs and weaker cash flows. Higher leverage can constrain future capital allocation and make it harder to absorb operational or regulatory pressure without relying on additional financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility franchise
Meralco operates an essential-service distribution network with a regulated franchise and a diversified customer base. This business model supports recurring demand and provides an established framework for recovering network costs and earning an allowed return on invested utility assets over time.
Read all positive factors
Manila Electric Company (MAEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.49B
Dividend Yield5.35%
Average Volume (3M)3.00
Price to Earnings (P/E)8.0
Beta (1Y)0.09
Revenue Growth8.84%
EPS Growth11.13%
CountryUS
Employees5,815
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)95.34
Shares Outstanding563,546,260
10 Day Avg. Volume0
30 Day Avg. Volume3
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)3.36
Price to Sales (P/S)1.14
P/FCF Ratio-18.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Manila Electric Company Business Overview & Revenue Model
Company Description
Manila Electric Company (Meralco), established in 1903 and headquartered in Pasig, Philippines, functions primarily as a major electricity utility. The company holds a government-granted franchise, which permits it to establish, manage, and mainta...
How the Company Makes Money
Meralco primarily makes money by providing regulated electricity distribution services within its franchise area. Its revenue model is largely utility-based and rate-regulated: (1) Distribution-related charges: The company earns revenue from distr...
Manila Electric Company Earnings Call Summary
Earnings Call Date:Oct 27, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 537.98B | 508.52B | 470.36B | 443.61B | 7.82B | 6.46B |
| Gross Profit | 73.00B | 57.51B | 99.12B | 86.07B | 641.84M | 922.68M |
| EBITDA | 82.19B | 66.98B | 79.52B | 67.77B | 771.13M | 52.01B |
| Net Income | 53.79B | 52.28B | 45.86B | 38.02B | 521.47M | 476.68M |
Balance Sheet | ||||||
| Total Assets | 841.00B | 823.47B | 617.96B | 586.04B | 9.32B | 9.48B |
| Cash, Cash Equivalents and Short-Term Investments | 120.05B | 109.40B | 93.31B | 90.49B | 1.32B | 1.42B |
| Total Debt | 247.45B | 230.11B | 93.42B | 100.66B | 1.86B | 1.78B |
| Total Liabilities | 611.37B | 600.05B | 432.08B | 418.72B | 7.09B | 7.42B |
| Stockholders Equity | 181.75B | 173.05B | 144.60B | 122.30B | 1.97B | 1.87B |
Cash Flow | ||||||
| Free Cash Flow | -32.53B | -31.90B | -2.50B | 29.04B | -205.11M | 399.48M |
| Operating Cash Flow | 67.86B | 77.02B | 42.01B | 57.97B | 568.83M | 951.99M |
| Investing Cash Flow | -47.37B | -157.93B | -18.76B | 1.57B | -516.26M | -1.08B |
| Financing Cash Flow | 11.32B | 106.93B | -21.59B | -32.60B | -37.38M | 224.69M |
Manila Electric Company Technical Analysis
Negative
15.19
Price Trends
15.72
Negative
17.33
Negative
18.61
Negative
Market Momentum
-0.46
Positive
21.79
Positive
0.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAEOY, the sentiment is Negative. The current price of 15.19 is above the 20-day moving average (MA) of 14.86, below the 50-day MA of 15.72, and below the 200-day MA of 18.61, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 21.79 is Positive, neither overbought nor oversold. The STOCH value of 0.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.02B | 15.38 | 12.91% | 4.19% | 26.97% | 11.70% | |
67 Neutral | $5.78B | 10.34 | 10.70% | 4.56% | 9.54% | 294.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $7.08B | 10.32 | 15.93% | 9.08% | 12.93% | -24.59% | |
59 Neutral | $7.49B | 8.02 | 31.40% | 5.35% | 8.84% | 11.13% | |
58 Neutral | $997.23M | 5.93 | 10.46% | ― | 1.93% | -35.13% | |
53 Neutral | $1.57B | 6.88 | 13.70% | 11.89% | 1.69% | ― |
* Utilities Sector Average
MAEOY
Manila Electric Company
13.30
-4.96
-27.17%
CIG
Companhia Energetica Minas Gerais
2.10
0.27
14.44%
EDN
Edenor SA
20.87
5.86
39.04%
HE
Hawaiian Electric
8.94
-2.08
-18.87%
ENIC
Enel Chile SA
4.23
0.51
13.62%
ELPC
Companhia Paranaense de Energia Sponsored ADR
12.42
4.26
52.15%
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.