Should You Invest in Meralco (Manila Electric Company) Stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Manila Electric Company for over three years. Every month, hundreds of thousands of users in the Philippines trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Manila Electric Company.

What is Manila Electric Company?

How much is the Manila Electric Company stock?

The price of Manila Electric Company stock is rising this week. Shares recently closed at ₱545.00, up ₱15.00 or 2.83% over the past 24 hours, and showing a 1.87% gain for the week. Manila Electric Company now maintains a market capitalization of ₱597.36 billion with a 3-month average volume of 141,820 shares. The stock currently trades at a P/E Ratio of 12.79, offers a dividend yield of 4.53%, and reports a beta of 0.54, suggesting moderate volatility. Solid market leadership and stable dividends continue to make this stock attractive for Philippine investors seeking long-term growth.

Our full analysis of Manila Electric Company stock

Following a systematic review of Manila Electric Company’s (MERALCO) latest financial results and the stock’s evolution over the past three years, we have synthesized multiple layers of analysis—fundamental indicators, technical signals, real-time market data, and peer comparisons—through proprietary algorithms to surface actionable insights. The result is a comprehensive perspective tailored for informed investment decision-making. So, why might Manila Electric Company stock once again become a strategic entry point into the Philippine utility and energy sector in 2025?

Recent performance and market context

Manila Electric Company has demonstrated exceptional price momentum over the past year, currently trading at ₱545.00 per share as of July 2025—an impressive 43.19% increase year-on-year. The recent intraday gain of ₱15.00 (+2.83%) and a 1.87% weekly uptick underscore ongoing investor confidence and strong market sentiment. The headline event of 2025 is the 25-year renewal of MERALCO’s franchise through 2053, decisively removing regulatory overhang and ensuring operational continuity. Strong quarterly results, highlighted by double-digit growth in both revenue and net profit (with Q1 2025 revenue up 10% to ₱114.51 billion and consolidated net income up 8.9% to ₱10.4 billion), reinforce MERALCO’s reputation for financial excellence. This robust result reflects resilient energy demand, operational efficiency, and the company’s astute cost management strategies. A supportive macroeconomic backdrop—as the Philippines continues its urbanization, industrialization, and digital transformation—favours sustained electricity consumption, positioning MERALCO as the prime beneficiary in a growing market.

Technical analysis

A detailed examination of technical indicators reveals a prevailing bullish structure for Manila Electric Company. The Relative Strength Index (RSI) at 59.7 signals ongoing buy-side momentum without yet entering “overbought” territory, suggesting there is further room for price appreciation. The Moving Average Convergence Divergence (MACD) at 0.05, combined with 11 of 12 moving average signals registering “Buy,” highlights powerful short- and medium-term momentum in MERALCO shares. All major short-to-intermediate moving averages—including the 5-day, 20-day, 50-day, and 100-day—are well-aligned in a bullish configuration, with share price trading above all but the 200-day average, which is in close proximity and indicates a potential for re-capture if positive momentum is sustained. Current supports at ₱531.00 and ₱529.00, backed by constructive volume, provide robust downside protection, while near-term price targets lie at resistance levels of ₱546.50 and ₱557.00. The overall technical setup, validated by broad consensus from leading technical models, points toward a new phase of outperformance.

Fundamental analysis

From a fundamental vantage point, Manila Electric Company offers a compelling blend of growth, resilience, and value. Q1 2025’s double-digit revenue and profit expansion is a testament to the quality and scalability of the business model, as well as the company’s ability to capture expanding demand across a growing customer base—now at 8.1 million, up 3% year-on-year. With a net profit base of ₱10.4 billion and EPS of ₱9.27, MERALCO is firing on all operational cylinders, consistently outperforming peers and surpassing analyst expectations. Its price-to-earnings (P/E) ratio stands at 12.79, which remains attractively valued given the defensive nature of utilities and the stability of MERALCO’s cash flows. The dividend yield of 4.53% is well supported by operating performance and ranks among the most reliable income streams in the local market. Structural strengths—such as dominant market share exceeding 60% of national electricity distribution, high entry barriers, and best-in-class management—have fortified MERALCO’s leadership in Philippine energy for over a century. The company’s relentless drive for innovation, modernization, and grid digitalization further enhances its long-term appeal in a rapidly evolving energy landscape.

Volume and liquidity

Sustained trading volume averaging 141,820 shares daily over the past three months highlights market enthusiasm and liquidity, facilitating efficient market entry and exit for both retail and institutional investors. A sizeable public float of 26.10% ensures active trading and robust price discovery, while significant ownership concentration among reputable local and foreign institutional investors adds further market credibility. The consistency and resilience in trading volumes—despite market cycles—reflects the trust investors place in MERALCO’s growth trajectory and the sustainability of its business model. High liquidity also underpins dynamic revaluations in response to catalysts and earnings beats, enabling agile portfolio adjustments for both short- and long-term investors.

Catalysts and positive outlook

Manila Electric Company is entering a cycle rich with bullish catalysts, each with potential to drive further upside. Foremost, the long-term renewal of its legislative franchise to 2053 has neutralized a major perceived risk, providing security and operational clarity. Strategic diversification continues: the February 2025 acquisition of strategic interests in Chromite Gas Holdings Inc. strengthens its energy generation portfolio, while core power generation now accounts for over 30% of group profit. Meanwhile, MERALCO’s foray into renewable energy is accelerating, notably through the Terra Solar project—the largest integrated renewable and storage facility in the world—solidifying its credentials as a transition leader in green energy. Ongoing modernization and smart grid investments are boosting operational efficiency and customer satisfaction while cementing MERALCO’s commitment to reduce carbon emissions by 15% by 2030, aligning with both local and international ESG priorities. Consumption growth, technological megatrends, and supportive government policies are mounting tailwinds, while the expansion into new service areas continues to broaden the company’s earnings base and strategic relevance in the Philippine energy ecosystem.

Investment strategies

• Short-term: Technical indicators strongly support trend-following or momentum entries, especially as the stock finds support at ₱531–₱545 and targets resistance at ₱546.50 and ₱557.00. Breakouts from these levels, supported by volume, may deliver attractive upside for active traders.
• Medium-term: A confluence of ongoing balance sheet strength, earnings growth, and operational scalability as MERALCO diversifies its business model positions the stock for outperformance in the coming quarters. Tactical investors may seek position sizes that capture dividend accruals and capital appreciation, especially in light of the robust Q1 and anticipated further positive earnings.
• Long-term: For those with a more extended horizon, MERALCO’s combination of defensive cash flows, above-average yield, regulatory clarity, and leadership in the energy transition justifies a place in core portfolios. The company’s unparalleled franchise longevity, best-in-class governance, and aggressive push toward renewables and modernization make it a standout for sustainable value compounding. Strategic entries at or just above key technical supports may maximize total returns as successful execution of projects like Terra Solar begin to materialize in financial results.

Is it the right time to buy Manila Electric Company?

All key elements point to a highly constructive outlook for Manila Electric Company: a unique blend of growth, resilience, and risk mitigation, underscored by a powerful regulatory moat and dynamic innovation in Philippine energy. Fundamental strength is matched by a technical landscape that not only supports current valuations but signals further upward potential. Multiple operational and structural catalysts—especially franchise renewal, renewable energy investments, and surging consumption—suggest a new era of sustainable outperformance. Liquidity, market leadership, and institutional confidence provide further reassurance for all categories of investors considering exposure in the power and utility space. For those seeking a stock with both yield and growth, a dominant position at the heart of a developing market, and a clear forward path, the fundamentals of Manila Electric Company justify renewed interest. The stock seems poised to enter a new bullish phase, offering excellent positioning for well-informed investors aiming to participate in the Philippine energy sector’s long-term transformation and value creation.

How to buy Manila Electric Company stock in the Philippines?

Buying Manila Electric Company stock online is easy and secure for Philippine investors when using a regulated broker. There are two main approaches: you can either purchase shares directly (“spot buying”) or trade using Contracts for Difference (CFDs) that let you profit from price movements without owning the stock. Both options are user-friendly on most online platforms. If you’d like to compare fees and features, you’ll find a broker comparison section further down the page.

Spot buying

A cash purchase means you buy real Manila Electric Company shares, becoming a registered shareholder eligible for dividends and voting rights. Fees usually consist of a fixed brokerage commission, typically around PHP 100–150 per order (about $2–$3), as well as standard exchange and clearing fees.

Example: Manila Electric Company Share Trade

If the Manila Electric Company share price is PHP 545.00, you can buy around 10 shares with a $1,000 stake (approximately PHP 54,500), including a brokerage fee of around $5.

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Manila Electric Company stock price moves without owning the actual shares. Brokers typically charge a spread (the difference between buy and sell prices), and you may incur overnight financing charges if your position remains open multiple days. CFDs also let you use leverage to multiply gains (and risks).

Gain scenario

You open a CFD position on Manila Electric Company shares, with 5x leverage.

This gives you a market exposure of $5,000.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before you invest, always compare broker fees, account conditions, and platform features to fit your investment style and goals. Whether you choose spot buying for long-term dividends or CFD trading for short-term opportunities, the right choice depends on your objectives. Don’t forget to check our detailed broker comparison further down this page to help you decide.

Our 7 tips for buying Manila Electric Company stock

The latest news about Manila Electric Company

Manila Electric Company stock achieved a new 52-week high, surging to ₱545.00 on strong trading volume. This milestone reflects increased investor confidence, boosted by sustained demand growth and robust operational momentum in the Philippine power sector.

The company’s franchise was officially extended until 2053, eliminating major regulatory uncertainty. President Marcos Jr. signed RA 12146 within the past week, guaranteeing Manila Electric Company operational continuity and investor security for another 25 years.

Q1 2025 financial results exceeded analyst forecasts, with double-digit revenue and profit growth. Consolidated net income rose by 8.9% to ₱10.4 billion, while revenue reached ₱114.51 billion, supported by strong customer and distribution growth across Luzon.

Technical signals remain bullish, as the stock receives a “Strong Buy” consensus from major indicators and analysts. A combination of favorable RSI, MACD, and multiple moving averages strengthened positive sentiment, suggesting further upside potential in the near term.

Dividend yield holds attractively at 4.53%, with stable payout history appreciated by local investors. This consistent return supports Manila Electric Company’s position as a cornerstone investment in Philippine portfolios, providing both reliable income and capital appreciation prospects.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.