Manila Electric Company (MAEOY) AI Stock Analysis

• Market Cap: $11.33B
• Dividend Yield: 2.55%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.34
• Revenue Growth: 5.05%
• EPS Growth: 14.30%
• Country: US
• Employees: 5,815
• Sector: Utilities
• Sector Strength: 87
• Industry: Regulated Electric
• EPS (TTM): 0.32
• Shares Outstanding: 563,546,260
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.22
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 492.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Manila Electric Company demonstrates strong financial health with notable improvements in revenue growth and profitability. The technical analysis supports positive momentum, with the stock trading above key moving averages. While the valuation is fair, the negative free cash flow raises some concerns about liquidity. Overall, the company is a solid performer in the regulated utilities sector, with the potential for stable returns.

Manila Electric Company Business Overview & Revenue Model

Company Description

Manila 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 Money

Meralco primarily makes money through the distribution and sale of electricity to its customer base within its franchise area. The company operates under a regulated rate structure where it earns revenue based on the volume of electricity sold and the tariffs approved by the Philippine Energy Regulatory Commission. Key revenue streams for Meralco include residential, commercial, and industrial electricity sales. Additionally, Meralco engages in various partnerships and ventures to enhance its service offerings and operational efficiency. Its earnings are also supported by investments in energy-related services, such as energy solutions and consulting, which complement its core distribution business.

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.

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
	EBIT
0.00	69.42B	477.17M	801.67M	736.30M
	EBITDA
79.52B	67.77B	771.13M	52.01B	45.07B
	Net Income Common Stockholders
45.86B	38.02B	521.47M	476.68M	328.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.31B	90.49B	1.32B	1.42B	1.23B
	Total Assets
617.96B	586.04B	9.32B	9.48B	8.13B
	Total Debt
93.42B	100.66B	1.86B	1.78B	835.92M
	Net Debt
8.94B	17.87B	861.35M	699.34M	-224.22M
	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: Positive
• Last Price: 20.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 20.12 is below the 20-day moving average (MA) of 20.22, above the 50-day MA of 19.53, and above the 200-day MA of 16.81, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAEOY.

Manila Electric Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNT	78 Outperform	$15.85B	21.29	10.71%	3.20%	2.46%	5.66%
MAEOY	76 Outperform	$11.33B	14.03	35.14%	2.55%	5.05%	14.30%
KEP	70 Outperform	$14.41B	3.92	13.42%	0.42%	0.21%	628.34%
OGE	70 Neutral	$8.91B	18.35	10.72%	3.80%	15.56%	21.90%
EVRG	68 Neutral	$15.14B	17.34	8.95%	3.98%	5.53%	23.00%
PNW	65 Neutral	$10.84B	18.03	9.08%	3.91%	10.69%	12.37%
Sector *	64 Neutral	$8.54B	10.24	4.67%	4.36%	4.12%	-13.19%