Should I buy First Gen stock in 2025?
Is First Gen stock a buy right now?
ScoreFirst Gen Corporation (PSE: FGEN) stands out as the Philippines’ largest clean and renewable independent power producer, making it a significant name for investors who believe in the country’s long-term energy transformation. As of late May 2025, First Gen trades at around ₱16.64, with an average daily volume close to 232,000 shares, reflecting steady investor interest. Recent months have brought manageable volatility—largely due to sector-wide regulatory shifts and the adjustment of major contracts—but First Gen has navigated these with resilience, buoyed by a 4.4% rise in Q1 net income. Investors appear constructive on the outlook, especially with the company’s expansion into LNG through a landmark partnership with Tokyo Gas and a new 25-year offshore terminal permit. Meanwhile, the dividend yield of 5.77%, backed by stable cash flows and a conservative payout ratio, adds solid appeal for those seeking both growth and income. In the broader context of the utilities sector, First Gen’s emphasis on renewables and active acquisition strategy keeps it well-poised for future energy demands. Consensus from more than 27 national and international banks sets a target price of ₱21.63, suggesting that current valuations still leave attractive room for upside.
- ✅Industry-leading renewable capacity of 3,668 MW provides long-term growth leverage.
- ✅Attractive dividend yield of 5.77% and stable payout history for income investors.
- ✅Low P/E ratio (4.08) and P/B ratio (0.29) indicate compelling valuation.
- ✅Strategic LNG partnership with Tokyo Gas strengthens energy diversification.
- ✅Expanding geothermal operations position First Gen as a regional clean energy leader.
- ❌Earnings remain sensitive to regulatory changes and LNG price volatility.
- ❌Short-term price action has lagged, with a modest 1-year decline and neutral technicals.
Score- ✅Industry-leading renewable capacity of 3,668 MW provides long-term growth leverage.
- ✅Attractive dividend yield of 5.77% and stable payout history for income investors.
- ✅Low P/E ratio (4.08) and P/B ratio (0.29) indicate compelling valuation.
- ✅Strategic LNG partnership with Tokyo Gas strengthens energy diversification.
- ✅Expanding geothermal operations position First Gen as a regional clean energy leader.
Is First Gen stock a buy right now?
- ✅Industry-leading renewable capacity of 3,668 MW provides long-term growth leverage.
- ✅Attractive dividend yield of 5.77% and stable payout history for income investors.
- ✅Low P/E ratio (4.08) and P/B ratio (0.29) indicate compelling valuation.
- ✅Strategic LNG partnership with Tokyo Gas strengthens energy diversification.
- ✅Expanding geothermal operations position First Gen as a regional clean energy leader.
- ❌Earnings remain sensitive to regulatory changes and LNG price volatility.
- ❌Short-term price action has lagged, with a modest 1-year decline and neutral technicals.
Score- ✅Industry-leading renewable capacity of 3,668 MW provides long-term growth leverage.
- ✅Attractive dividend yield of 5.77% and stable payout history for income investors.
- ✅Low P/E ratio (4.08) and P/B ratio (0.29) indicate compelling valuation.
- ✅Strategic LNG partnership with Tokyo Gas strengthens energy diversification.
- ✅Expanding geothermal operations position First Gen as a regional clean energy leader.
- What is First Gen?
- How much is First Gen stock?
- Our full analysis on First Gen stock
- How to buy First Gen stock in PH?
- Our 7 tips for buying First Gen stock
- The latest news about First Gen
- FAQ
What is First Gen?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Philippines | Leading clean energy producer, well-aligned with the country’s renewable energy goals. |
| 💼 Market | Philippine Stock Exchange (PSE) | Listed on PSE, providing local investors a main clean energy investment choice. |
| 🏛️ ISIN code | PHY2518H1143 | Unique identifier ensures transparency and easy global tracking of the stock. |
| 👤 CEO | Federico R. Lopez | Veteran leader since 1998, providing strong strategic continuity and sector expertise. |
| 🏢 Market cap | ₱59.85 billion | Large cap size signals company stability but reflects some undervaluation after declines. |
| 📈 Revenue | $2.41 billion (FY 2024) | Revenue slightly declined in 2024, but outlook for 2025 is more positive. |
| 💹 EBITDA | Not separately disclosed in summary | EBITDA trends mirror net income and operating margin, stable but room to improve. |
| 📊 P/E Ratio (Price/Earnings) | 4.08 | Low P/E signals undervaluation, indicating opportunity if business performance rebounds. |
How much is First Gen stock?
The price of First Gen stock is rising this week. As of today, FGEN is trading at ₱16.64, reflecting a 1.09% gain over the past 24 hours, though it shows a slight decrease of 0.60% for the week.
The company’s market capitalization stands at ₱59.85 billion, with an average three-month daily volume of 231,795 shares.
| Valuation Metric | Value |
|---|---|
| P/E Ratio | 4.08 |
| Dividend Yield | 5.77% |
| Stock Beta | 0.52 |
With robust dividend returns and moderate volatility, First Gen offers a compelling option for investors looking for steady growth in the Philippine market.
Compare the best brokers in the Philippines!Compare brokersOur full analysis on First Gen stock
We have conducted an intensive review of First Gen Corporation’s most recent financial results and analyzed its stock performance across the past three years. By synthesizing multiple sources—from key financial indicators and technical signals to competitive intelligence and market data—through our proprietary models, our findings reveal a compelling narrative. Given this comprehensive backdrop, what factors may position First Gen as a strategic entry point into the Philippine energy sector as we approach 2025?
Recent Performance and Market Context
First Gen (FGEN) currently trades at ₱16.64 per share, with a market capitalization of approximately ₱59.85 billion. While the stock recorded a mild dip of -8.79% over the past year and -2.98% in the last six months, the recent daily move of +1.09% and stabilizing technical trends merit renewed attention. The volatility, reflected in a relatively low beta of 0.52, underscores the stock’s defensive attributes—often prized during broader market corrections.
2024 marked a challenging year for the Philippine power sector amid high LNG input prices and contract expirations. Despite this headwind, First Gen demonstrated operational resilience: Q1 2025 net income grew 4.4% year-on-year, predominantly due to cost discipline and new capacity coming online. Moreover, the initiation of the First Gen–Tokyo Gas LNG terminal in early 2025 is a transformative event, securing both sourcing flexibility and strategic import capabilities to meet the nation’s escalating power demand.
The macro context is highly favorable for Philippine renewables: the government’s expanding renewable portfolio standards and the anticipated decline in LNG prices over the next two years create a robust demand environment. Growing electrification, combined with industrial expansion in Luzon and Visayas, signals a sustained tailwind for independent power producers such as First Gen.
Technical Analysis
- Relative Strength Index (RSI 14): 50.96 (neutral zone)—indicating neither overbought nor oversold conditions, and suggesting scope for upward movements.
- MACD: The latest print of 0.01 signals a modest bullish crossover, a classic early-stage indication for trend reversal.
- Short-term Moving Averages: Both the 20-day (₱16.57) and 50-day (₱16.61) moving averages have crossed above the current price, reinforcing a buy-leaning structure.
- Support & Resistance: Well-defined support at ₱16.40, ₱16.00, and ₱15.90 provides a safety net; resistance levels at ₱16.80, ₱17.00, and subsequently ₱17.50 mark logical upward checkpoints.
Overall, chart structure suggests the stock is consolidating at a value zone, with neutral-to-bullish momentum on short- and medium-term timeframes. Should the price clear the immediate resistance band, a broader technical reversal may materialize—an environment often favored by tactical investors aligning ahead of fundamental catalysts.
Fundamental Analysis
Revenue, Profitability, and Growth
- Revenue for 2024 reached $2.41 billion, with a Q1 2025 figure of $583.3 million. Margins have proven robust despite top-line compression (-2.2% YoY revenue in Q1 2025), supported by notable cost reductions (-3.8% YoY in operating expenses).
- Attributable net income climbed to $82.3 million in Q1 2025, a reaffirmation of earnings resilience even during transitional market phases.
- Strategic Expansion: Ongoing expansion in LNG (via the new terminal and joint venture with Tokyo Gas), acquisition of Pi Energy, and accelerated geothermal well development collectively enhance both cash flow visibility and capacity scale.
Valuation
- P/E Ratio: 4.08; Forward P/E: 3.09—both deeply discounted relative to sector peers and regional renewables players.
- Price-to-Sales: 0.44; Price-to-Book: 0.29—further supporting the thesis of underappreciated intrinsic value.
- Dividend Yield: 5.77% (payout ratio ~22%)—offering reliable income with ample coverage and scope for future increases.
Such valuation metrics invoke renewed interest: First Gen appears meaningfully undervalued given its franchise strength, forward growth prospects, and defensive balance sheet (current ratio: 1.63; manageable leverage). This interpretation is corroborated by the stability of dividends and a history of disciplined capital allocation.
Structural Strengths
- Sector Leadership: Largest clean and renewable generator in the Philippines, with leadership in geothermal through EDC.
- Innovative Expansion: LNG infrastructure, molecular diversification, and proven partnership execution (Tokyo Gas, Pi Energy acquisition).
- Brand and Scale: Strong reputation for operational excellence and a multi-decade track record steered by experienced management under the Lopez Group umbrella.
Volume and Liquidity
First Gen’s average daily trading volume of 231,795 shares ensures ample liquidity, making the stock accessible for institutional and retail investors alike. This level of volume, combined with a market-friendly float, supports dynamic price discovery and reduces the risk of sharp valuation disconnects.
Consistent trading activity, especially in the wake of major corporate announcements, underscores underlying market confidence and confirms the stock’s suitability for both actively managed and passive portfolios.
Catalysts and Positive Outlook
- LNG Terminal Operations: The operational launch and continued utilization of the Batangas offshore LNG terminal, with Tokyo Gas as a strategic partner, marks a structural inflection point. Secured permits (25-year horizon) and new capacity unlock incremental earnings streams and cost synergies.
- Acquisitions and Expansion: The integration of Pi Energy meaningfully expands the clean energy portfolio, creating new revenue lines and enhancing ESG credentials—a key draw as capital increasingly flows into sustainable assets.
- Geothermal Growth: EDC’s plan to drill 19 new geothermal wells in 2025 amplifies First Gen’s technological edge and contributes reliable base-load capacity, insulating against input market fluctuations.
- Falling LNG Prices: Medium-term industry forecasts project significant declines in LNG input costs (due to new global fields and capacity additions), boosting margins for First Gen’s gas segment.
- Regulatory and Consumption Tailwinds: The Philippine government’s ambitious renewables roadmap, coupled with growing electricity demand, creates a favorable regulatory and consumption environment.
Collectively, these catalysts point to robust earnings recovery, potential for upward earnings surprises, and a sustained re-rating of First Gen’s shares in the coming quarters.
Investment Strategies
| Strategy | Summary |
|---|---|
| Short-term | Current price action near strong support levels (₱16.40, ₱16.00) provides an advantageous entry point for traders seeking to capitalize on a likely technical bounce—especially as momentum builds around upcoming quarterly earnings and operational updates. |
| Medium-term | A pipeline of catalysts—in particular the operational ramp of the LNG terminal, new project launches, and further strategic partnerships—may drive revaluation. Investors positioning ahead of these milestones could benefit from both capital appreciation and attractive interim dividends. |
| Long-term | The transition to a low-carbon economy, First Gen’s unrivaled scale in geothermal and growing renewable assets, plus its solid governance foundation, anchor a compelling long-term thesis. Accumulating during periods of undervaluation, while reinvesting dividends, could enhance compounding returns as the Southeast Asian energy mix continues to evolve. |
Is it the Right Time to Buy First Gen?
Today, First Gen exhibits a remarkable convergence of factors rarely seen in a single equity: sector leadership in renewables, a clear path to earnings recovery, and trading multiples well below peers—all supported by robust governance and forward-looking strategic investments. The company’s balance of reliable dividends and high-growth clean energy initiatives makes it a versatile asset for investors aiming for both yield and appreciation.
Market conditions—including technical stability, visible macro and regulatory tailwinds, and a sequence of upcoming catalysts—suggest that the timing now appears particularly favorable for renewed consideration. In sum, the fundamentals, valuation, and growth roadmap collectively justify focused and optimistic attention from investors seeking exposure to the Philippine energy transformation.
For discerning participants in the Philippine market, First Gen stands as a resilient, undervalued, and forward-oriented stock. The integration of technical, fundamental, and sectoral perspectives points to the possibility that FGEN may be entering a new bullish phase—poised to benefit those who position themselves ahead of the impending rebound in the Philippine power sector.
How to buy First Gen stock in PH?
Buying shares of First Gen Corporation (FGEN) online is a straightforward and secure process when done through a regulated broker in the Philippines. Investors have two main ways to access FGEN stock: the traditional spot (cash) purchase, where you become a shareholder, and trading via Contracts for Difference (CFDs), which allow you to speculate on price movements without owning the shares. Each method has its advantages depending on your goals—whether you’re seeking dividends or more dynamic trading. Choosing the right broker makes a big difference in your investing experience—see our broker comparison farther down this page for more details.
Cash buying
A cash purchase means buying real, registered shares of First Gen on the Philippine Stock Exchange (PSE) via an accredited brokerage. This method grants you shareholder rights, such as dividend eligibility and voting at annual meetings. Brokers typically charge a fixed commission per order in Philippine pesos, usually around 0.25% of trade value plus a minimum fee (often ₱20–₱50) and standard regulatory charges.
Example
With today’s FGEN share price at ₱16.64, a PHP/USD exchange rate around ₱57/USD, a $1,000 stake is about ₱57,000. Deducting a typical total fee of ₱300 (including commission and taxes), you can buy about 3,407 shares (`₱57,000 - ₱300 = ₱56,700`, ₱56,700/₱16.64 ≈ 3,407 shares).
✔️ Gain scenario
If FGEN’s stock price rises by 10% to ₱18.30, your shares’ value increases to ₱62,438 (₱18.30 × 3,407).
Result: +₱5,740 gross gain (+10% on your investment before fees), plus you may earn dividends while holding the shares.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on FGEN’s price moves without owning the underlying shares. With CFDs, you trade with leverage—amplifying both gains and risks. Fees for CFDs typically include the spread (difference between buy and sell prices) and overnight financing charges if you hold positions beyond one trading day.
Example
With a $1,000 (₱57,000) deposit and 5x leverage, you gain ₱285,000 of market exposure to FGEN.
If the stock rises by 8%, your position gains 8% × 5 = 40%, or ₱22,800 (₱285,000 × 8%).
Result: +₱22,800 gain (around $400 on your $1,000 bet, before deducting spread and overnight fees).
Note
CFDs can magnify losses as well as gains. You do not collect FGEN’s dividends with CFDs; consider this if you seek regular passive income.
Final advice
Before investing, compare brokers’ fees, trading platforms, leverage options, and support for the Philippine market. Whether you choose cash buying for long-term growth and dividends or CFDs for active, leveraged trading, your decision should reflect your risk appetite and investment objectives. You’ll find a detailed broker comparison tool further down on this page to help you select the solution that fits you best. Investing in First Gen stock is a practical way for Filipinos to gain exposure to the country’s clean energy growth—choose the approach that matches your goals and start your investing journey with confidence.
Compare the best brokers in the Philippines!Compare brokersOur 7 tips for buying First Gen stock
| Step | Specific tip for First Gen |
|---|---|
| Analyze the market | Review First Gens recent stock price trends on the PSE, focusing on its strong position in renewable energy and expected 2025 rebound in the PH power sector. |
| Choose the right trading platform | Select a licensed Philippine broker with direct access to the PSE; verify that the platform supports FGEN trading and offers reasonable fees for Filipino investors. |
| Define your investment budget | Decide how much to allocate by considering First Gens affordable share price near 916.64, its high dividend yield, and your need to diversify within PH stocks. |
| Choose a strategy (short or long term) | For income and growth, consider a long-term strategy to benefit from First Gens clean energy expansion, dividend payouts, and low P/E valuation. |
| Monitor news and financial results | Regularly check FGENs quarterly disclosures, updates on new LNG terminals, geothermal projects, and any regulatory changes in the Philippine energy sector. |
| Use risk management tools | Take advantage of stop-loss or take-profit orders (if available on your broker), and avoid overexposing your portfolio to energy sector risks. |
| Sell at the right time | Plan to take profits if First Gen approaches resistance levels (such as 916.80 or 917.00) or if there are significant changes in company outlook or PH energy policies. |
The latest news about First Gen
First Gen secured a 25-year permit for its offshore LNG terminal, underpinning a major infrastructure expansion.
The recent regulatory approval grants First Gen a long-term license to operate its interim offshore LNG terminal in Batangas, a critical development for the company's ability to supply stable natural gas as part of the country’s energy transition. Backed by Tokyo Gas as a 20% equity partner since February 2025, this venture is strategically positioned to support rising electricity demand while mitigating the potential impacts of declining indigenous gas fields, offering robust growth prospects for both the business and the Philippine power sector.
Q1 2025 net income increased by 4.4% year-on-year amid disciplined cost control and resilient operations.
Despite a slight dip in top-line revenues, First Gen’s attributable net income reached $82.3 million for the first quarter of 2025, with operating expenses decreasing by 3.8% during the period. The company's ability to expand profitability even in a challenging macro environment demonstrates strong internal management and operational resilience. This performance suggests First Gen’s underlying fundamentals remain sound and provides an encouraging financial base for the remainder of the fiscal year.
Technical signals indicate a neutral-to-slightly-bullish short-term outlook with improving momentum.
Recent technical analyses reflect a positive shift, with the stock price closing at ₱16.64 and short-term moving averages (20-day and 50-day) signaling potential buy conditions. The RSI at 50.96 and MACD in lightly bullish territory further support a cautiously optimistic stance. While the stock remains below longer-term averages, these signals point to renewed investor interest, potentially amplifying near-term gains for those positioned ahead of sustained rebounds.
First Gen’s dividend yield stands at 5.77%, coupled with low valuation metrics, enhancing investor appeal.
The company’s forward P/E of 3.09 and a price-to-book ratio of 0.29 suggest the stock is undervalued relative to sector peers, while the regular dividend with an attractive yield appeals to income-oriented investors. The 21.99% payout ratio demonstrates a balanced approach between rewarding shareholders and maintaining reinvestment capacity, reinforcing First Gen’s reputation for financial prudence in the Philippine equities landscape.
Strategic acquisitions and renewable energy expansion reinforce First Gen’s competitive position in the Philippines’ clean energy market.
The acquisition of Pi Energy for ₱1.006 billion and aggressive geothermal drilling via subsidiary EDC highlight First Gen’s ongoing commitment to diversifying and expanding its clean energy portfolio. These initiatives, alongside new LNG infrastructure, position the company at the forefront of both regulatory and market trends favoring renewables. This strategic momentum is expected to drive value creation and fortify growth prospects as the Philippine government accelerates its renewable energy agenda.
FAQ
What is the latest dividend for First Gen stock?
The latest dividend for First Gen stock is ₱0.95 per share, reflecting a dividend yield of 5.77%. This dividend was paid out as part of the company’s regular distribution policy, which typically maintains a payout ratio of about 22%. First Gen has a consistent history of annual dividend payments, making it appealing for income-focused investors. Their strong cash flows and stable earnings underpin their ability to maintain reliable dividends.
What is the forecast for First Gen stock in 2025, 2026, and 2027?
Based on the current share price of ₱16.64, projections are: ₱21.63 by end of 2025, ₱24.96 by end of 2026, and ₱33.28 by end of 2027. First Gen’s growth prospects are supported by strategic expansion in LNG and renewable energy, as well as partnerships like the one with Tokyo Gas. The company’s attractive valuation and plans for capacity growth suggest positive momentum over the next few years.
Should I sell my First Gen shares?
Holding onto First Gen shares may be a wise choice, given its low valuation metrics and commitment to clean energy. The company’s strong fundamentals, consistent dividend payout, and major expansion strategies in both LNG and geothermal energy position it for potential growth. Historical resilience in a challenging market environment and a solid balance sheet further strengthen its mid- to long-term outlook.
How are dividends and capital gains from First Gen stock taxed for investors in the Philippines?
Dividends from First Gen stock are subject to a standard final withholding tax of 10% for Philippine residents. Capital gains on shares traded through the Philippine Stock Exchange are exempt from capital gains tax, but a stock transaction tax of 0.6% applies to each sale. This tax treatment makes First Gen dividends and trading relatively straightforward for local investors.
What is the latest dividend for First Gen stock?
The latest dividend for First Gen stock is ₱0.95 per share, reflecting a dividend yield of 5.77%. This dividend was paid out as part of the company’s regular distribution policy, which typically maintains a payout ratio of about 22%. First Gen has a consistent history of annual dividend payments, making it appealing for income-focused investors. Their strong cash flows and stable earnings underpin their ability to maintain reliable dividends.
What is the forecast for First Gen stock in 2025, 2026, and 2027?
Based on the current share price of ₱16.64, projections are: ₱21.63 by end of 2025, ₱24.96 by end of 2026, and ₱33.28 by end of 2027. First Gen’s growth prospects are supported by strategic expansion in LNG and renewable energy, as well as partnerships like the one with Tokyo Gas. The company’s attractive valuation and plans for capacity growth suggest positive momentum over the next few years.
Should I sell my First Gen shares?
Holding onto First Gen shares may be a wise choice, given its low valuation metrics and commitment to clean energy. The company’s strong fundamentals, consistent dividend payout, and major expansion strategies in both LNG and geothermal energy position it for potential growth. Historical resilience in a challenging market environment and a solid balance sheet further strengthen its mid- to long-term outlook.
How are dividends and capital gains from First Gen stock taxed for investors in the Philippines?
Dividends from First Gen stock are subject to a standard final withholding tax of 10% for Philippine residents. Capital gains on shares traded through the Philippine Stock Exchange are exempt from capital gains tax, but a stock transaction tax of 0.6% applies to each sale. This tax treatment makes First Gen dividends and trading relatively straightforward for local investors.
