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Manila Electric Company (MAEOY)
OTHER OTC:MAEOY
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Manila Electric Company
(OTC:MAEOY)
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Rating:77Outperform
Price Target:
$22.50
▲(14.91% 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.
Positive Factors
Revenue Growth
Consistent revenue growth indicates effective market penetration and product demand, supporting long-term financial stability and expansion.
Operational Reliability
Improved operational reliability enhances service quality, reduces costs, and strengthens customer trust, contributing to sustained business success.
Power Generation Growth
Significant growth in power generation diversifies revenue streams and strengthens the company's position in the energy market.
Negative Factors
Negative Free Cash Flow
Negative free cash flow can limit the company's ability to invest in growth opportunities and manage financial obligations, impacting long-term viability.
Energy Sales Decline
A decline in energy sales can affect revenue stability, especially if driven by factors like weather and market shifts that may persist.
Regulatory Challenges
Regulatory changes impacting revenue can create financial unpredictability, requiring strategic adjustments to maintain profitability.
Manila Electric Company (MAEOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.04B
Dividend Yield4.82%
Average Volume (3M)0.00
Price to Earnings (P/E)12.9
Beta (1Y)0.21
Revenue Growth4.05%
EPS Growth11.89%
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 Ratio0.57
Price to Book (P/B)3.73
Price to Sales (P/S)1.15
P/FCF Ratio-215.93
Enterprise Value/Market Cap60.54
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit6.91
Enterprise Value/Ebitda8.23
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 DescriptionManila Electric Company holds a congressional franchise to construct, operate, and maintain an electric distribution system in the Philippines. The company operates through two segments, Power and Other Services. It offers power to approximately 7.3 million industrial, commercial, and residential customers in 36 cities and 75 municipalities, including Metro Manila, and the provinces of Rizal, Cavite, and Bulacan, as well as parts of the provinces of Pampanga, Batangas, Laguna, and Quezon; distributes power to customers in Clark Special Economic Zone; and develops, finances, constructs, and operates solar-powered generation facilities, as well as owns coal and diesel-fired, and liquefied natural gas power plants. The company also provides electromechanical engineering, construction, consulting, and related manpower services; rail-related operations and maintenance services; insurance and re-insurance services; e-business development; power distribution management; and electric vehicle and charging infrastructure solutions. In addition, it offers engineering, procurement, and construction services; testing and commissioning services; and building and facilities management services. Further, the company provides e-transaction, outsourced payment collection, outsourced tellering, and other administrative services; energy efficiency and urban services, as well as engages in the energy sourcing and trading, and wholesale contracting and aggregating of electricity. Manila Electric Company was founded in 1903 and is based in Pasig, the Philippines.
How the Company Makes MoneyMAEOY primarily generates revenue through the sale of electricity to residential, commercial, and industrial customers. The company purchases electricity from power generation companies and then sells it to end-users at regulated rates determined by the Energy Regulatory Commission (ERC). Key revenue streams include the basic electricity charge, which covers generation, transmission, and distribution costs, as well as ancillary services. Additionally, MAEOY earns from various fees, including connection fees and service charges. The company's revenue is supported by strategic partnerships with generation companies and participation in the wholesale electricity spot market, allowing it to optimize procurement and pricing strategies. Factors contributing to its earnings include regulatory frameworks, demand growth in its service areas, and initiatives aimed at improving operational efficiency and customer service.
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
Neutral
19.58
Price Trends
19.77
Negative
19.28
Positive
19.16
Positive
Market Momentum
-0.01
Positive
44.99
Neutral
11.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAEOY, the sentiment is Neutral. The current price of 19.58 is below the 20-day moving average (MA) of 19.99, below the 50-day MA of 19.77, and above the 200-day MA of 19.16, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.04B | 12.93 | 32.73% | 4.82% | 4.05% | 11.89% | |
67 Neutral | $8.79B | 17.15 | 10.69% | 3.82% | 18.03% | 29.46% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $10.58B | 18.15 | 8.62% | 4.15% | 5.70% | -8.25% | |
62 Neutral | $16.75B | 19.97 | 8.36% | 3.72% | 0.11% | -0.52% |
* Utilities Sector Average
MAEOY
Manila Electric Company
19.58
3.19
19.46%
OGE
OGE Energy
42.78
3.12
7.87%
PNW
Pinnacle West Capital
88.40
6.94
8.52%
EVRG
Evergy
72.77
13.59
22.96%
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.