Manila Electric Company (MAEOY) AI Stock Analysis

• Market Cap: $10.57B
• Dividend Yield: 0.09%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.25
• Revenue Growth: 5.05%
• EPS Growth: 14.30%
• Country: US
• Employees: 5,815
• Sector: Utilities
• Sector Strength: 71
• Industry: Regulated Electric
• EPS (TTM): 0.32
• Shares Outstanding: 563,546,260
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 6.52
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 17.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $20.50 ▲(9.16%Upside)

The stock's overall score is driven primarily by strong financial performance, with revenue growth and improved profit margins. However, liquidity challenges due to negative cash flow weigh down the score. Technical indicators suggest weak momentum, and the valuation is moderate with an attractive dividend yield.

Manila Electric Company Business Overview & Revenue Model

Company Description

Manila Electric Company (MAEOY), commonly known as Meralco, is the largest electric distribution utility company in the Philippines. It operates primarily in the National Capital Region and its surrounding provinces, serving residential, commercial, and industrial customers. Meralco's core service is the distribution of electricity, and it plays a crucial role in the energy infrastructure of the country.

How the Company Makes Money

Meralco generates revenue primarily through the distribution and sale of electricity to its customers. The company's revenue model is based on the volume of electricity sold, which is measured in kilowatt-hours. Meralco charges its customers through a tariff rate approved by the Energy Regulatory Commission (ERC), which includes charges for generation, transmission, distribution, and other fees. In addition to its main revenue stream from electricity distribution, Meralco also invests in power generation projects and renewable energy initiatives, which contribute to its earnings. The company's financial performance is influenced by factors such as regulatory changes, economic conditions, energy consumption patterns, and partnerships with power generation companies to ensure a stable supply of electricity.

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.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	470.36B	443.61B	7.82B	6.46B	5.55B
Gross Profit	99.12B	86.07B	641.84M	922.68M	846.20M
EBITDA	79.52B	67.77B	771.13M	52.01B	45.07B
Net Income	45.86B	38.02B	521.47M	476.68M	328.95M
Balance Sheet
Total Assets	617.96B	586.04B	9.32B	9.48B	8.13B
Cash, Cash Equivalents and Short-Term Investments	93.31B	90.49B	1.32B	1.42B	1.23B
Total Debt	93.42B	100.66B	1.86B	1.78B	835.92M
Total Liabilities	432.08B	418.72B	7.09B	7.42B	6.45B
Stockholders Equity	144.60B	122.30B	1.97B	1.87B	1.65B
Cash Flow
Free Cash Flow	-2.50B	29.04B	―	399.48M	221.77M
Operating Cash Flow	42.01B	57.97B	568.83M	951.99M	636.24M
Investing Cash Flow	-18.76B	1.57B	―	―	―
Financing Cash Flow	-21.59B	-32.60B	―	224.69M	―

Manila Electric Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 18.78 is below the 20-day moving average (MA) of 19.05, below the 50-day MA of 19.47, and above the 200-day MA of 17.65, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAEOY.

Manila Electric Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNT	76 Outperform	$16.15B	21.81	10.71%	3.23%	2.46%	5.66%
OGE	74 Outperform	$8.82B	18.16	10.72%	3.82%	15.56%	21.90%
MAEOY	70 Outperform	$10.57B	13.05	35.14%	0.09%	5.05%	14.30%
KEP	69 Neutral	$16.85B	4.57	13.42%	0.36%	0.21%	628.34%
EVRG	69 Neutral	$15.58B	17.84	8.95%	3.94%	5.53%	23.00%
PNW	68 Neutral	$10.85B	18.19	9.08%	3.94%	10.69%	12.37%
Sector *	67 Neutral	$16.46B	16.85	4.47%	3.80%	4.76%	6.06%