Should I buy Manila Electric Company stock in 2025?

What is Manila Electric Company?

How much is Manila Electric Company stock?

The price of Manila Electric Company stock is declining this week. As of the latest close, MER trades at ₱539.00, showing a 0.56% gain in the past 24 hours but posting a -3.68% drop over the last week. Market capitalization stands at ₱604.12 billion, with a 3-month average daily trading volume of around 267 shares. The stock’s P/E ratio is 11.79, with a solid dividend yield of 4.48%, and a beta of 0.61 indicates lower volatility than the market. While recent performance highlights stability and consistent dividends, investors should be aware of short-term volatility and current bearish sentiment.

Our full analysis on Manila Electric Company stock

Having thoroughly reviewed Manila Electric Company’s (Meralco) latest Q1 2025 results and tracked its stock performance over the past three years, we have synthesized financial indicators, technical signals, macroeconomic trends, and competitive benchmarking using our proprietary quantitative models. With a backdrop of improving fundamentals, notable operational milestones, and intriguing technical set-ups forming in a sector poised for robust demand, one may naturally inquire: could Manila Electric Company stock again present a strategic entry point for exposure to the Philippine utilities growth story in 2025?

Recent Performance and Market Context

Meralco’s stock has demonstrated remarkable resilience and long-term upward momentum amidst periods of market volatility. As of May 27, 2025, shares are trading at ₱539.00, marking a robust 36.26% increase over the past twelve months and a 17.34% rise year-to-date. Notably, the stock’s 6-month return stands at +10.59%, outpacing local benchmarks and many regional peers in the utilities space.

• Franchise Renewal: The 25-year franchise renewal confirmed in 2025 substantially underpins Meralco’s operational visibility and secures earnings stability through 2053.
• Earnings Beat: Q1 2025 results exceeded analyst consensus, reporting net income growth of 8.9% year-on-year (YoY) and revenue expansion of 10% YoY.
• Customer Base Growth: The company’s consolidated customer count has risen to 8.1 million (+3% YoY), highlighting Meralco’s expanding reach in Metro Manila and beyond.
• Favorable Macroeconomic Tailwinds: As the Philippine economy continues to recover and urbanization deepens, electricity demand growth has proven resilient and is forecast to accelerate—further supported by infrastructural investments and regulatory clarity.

Within the Asian utility sector, Meralco’s strong market capitalization of ₱604 billion and status as the Philippines’ largest electric utility reinforce its market leadership and its attractiveness as a defensive yet growth-oriented holding.

Technical Analysis

From a technical perspective, Meralco’s share price is currently consolidating near the lower bounds of its recent trading range:

• Relative Strength Index (RSI): At 30.25, Meralco’s RSI approaches oversold territory, often indicating the potential for a technical rebound.
• MACD and Trendlines: With a MACD of -4.64 and the price entrenched below 20-, 50-, 100-, and 200-day moving averages, short-term technicals suggest bearish momentum may be nearing exhaustion. This historically has presented favorable re-entry opportunities for patient investors.
• Support Levels: The stock is firmly supported at ₱529.00, with further strongholds at ₱522.00 and ₱511.50; these levels—coupled with a neutral Stochastic Oscillator of 54.43—could provide a springboard for medium-term accumulation, especially as profit-taking abates after recent highs.
• Volatility Context: ATR(14) at 4.96 reflects a heightened but not destabilizing volatility level. Past instances of ATR spikes in Meralco have often foreshadowed bullish reversals over subsequent quarters.

Despite the prevailing “sell” signal on the technical dashboard, the confluence of deeply oversold conditions and strategically robust support levels sets the stage for a possible technical inflection—rendering the current environment an attractive watchpoint for new entrants or for scaling existing exposures.

Fundamental Analysis

Meralco continues to showcase the hallmarks of a fundamentally robust enterprise:

• Revenue Growth and Profitability: Q1 2025 revenue soared to ₱114.5 billion (+10% YoY), with consolidated core net income climbing to ₱11.2 billion (+10.8% YoY). Earnings per share expanded by 11% YoY to ₱9.91, and all major business segments contributed meaningfully to growth.
• Strategic Expansion: The company’s acquisition, through Chromite Gas Holdings, of substantial interests in two gas-fired power plants and an LNG regasification terminal further diversifies its generation portfolio and strengthens resilience against energy price shocks.
• Attractive Valuation: Meralco is trading at just 11.79x trailing P/E (with a forward P/E of 10.56), below both sector averages and its own historical norm, despite the uptick in earnings and cash flows. Its price-to-sales (1.15) and price-to-book (3.88) ratios remain within reasonable bounds given its capital intensity, consistent dividend payouts, and low beta (0.61).
• Market Leadership: As the clear market leader in regulated electricity distribution (serving 60% of CCNI) and with a fast-growing presence in power generation (+25% YoY in earnings from this segment), Meralco capitalizes on both defensive characteristics and secular Philippine electricity demand growth.
• Brand Strength and Governance: Over a century in operation, steadfast governance, and a trusted brand make Meralco an institutional fixture and the default choice for investors prioritizing stability and reliability.

These factors combined reinforce the rationale for considering Meralco a core holding, particularly at current valuation levels that do not yet fully reflect either its growth potential or its evolving renewables and gas play.

Volume and Liquidity

Liquidity remains robust, with a market capitalization exceeding ₱604 billion, ample float, and steady (if not spectacular) daily volumes on the local bourse and OTC ADRs alike.

• Healthy Trading Activity: High institutional participation and significant index inclusion (PSEi) suggest that even in times of market stress, Meralco’s shares are subject to efficient price discovery, limiting the risk of outsized price dislocations.
• Dynamic Float: The sizable freely traded float enables dynamic re-ratings as new information emerges and catalysts materialize, creating pathways for prompt upward revaluations when fundamentals outpace market expectations.

For both active and long-term investors, this liquidity profile offers confidence that positions can be established or unwound efficiently without undue slippage—making Meralco an accessible equity for portfolios of all sizes.

Catalysts and Positive Outlook

Looking ahead, several clear bullish catalysts and structural advantages distinguish Meralco:

• Enduring Franchise Stability: The recent franchise renewal through 2053 not only cements regulatory certainty but also removes a major overhang, paving the way for multicycle capital formation and investor confidence.
• Growth Ambitions in Renewables and LNG: Stepping up investments in renewables and natural gas facilities positions Meralco to benefit from both policy-driven energy transitions and the secular shift toward cleaner power sources within the region.
• Retail Tariff Upside: Q1 2025 saw a 3% increase in average retail tariffs, which, in the current inflationary environment, supports margin expansion and underpins stable cash flows for funding dividends and capital expenditures.
• Management Guidance: The board and management have articulated a double-digit earnings growth outlook for FY2025—guidance that aligns well with the emerging trends of urban development, digitalization, and increasing demand for reliable, high-quality electricity.
• Dividend Strength: A forward yield of 4.48%, underpinned by a policy of consistent semi-annual payouts, buttresses total returns and appeals to income-oriented and defensive portfolio strategies.

Other contributing positive tailwinds include the resilient Philippine GDP trajectory, steady population growth, and readiness for energy sector reforms, each providing Meralco with an expanding addressable market.

Investment Strategies

Given the current technical and fundamental configuration, several entry strategies appear justified:

• Short-Term Tacticians: For those attuned to technicals, accumulating shares near current support levels (₱529.00–₱539.00) may position portfolios to benefit from a technical mean reversion as oversold pressures abate. The probability of testing key resistance bands (₱546.50–₱557.00) in the coming weeks remains elevated, especially on positive sector sentiment or macro news.
• Medium-Term Accumulators: Investors taking a 6- to 12-month view may appreciate the compelling blend of dividend yield, improving fundamentals, and credible 2025 guidance. Portfolio allocations into Meralco ahead of major index rebalances or ahead of future earnings reports could secure exposure before consensus upgrades are priced in.
• Long-Term Allocators: For buy-and-hold strategies, Meralco’s market dominance, prudent capital management, and continuous investments in renewables and infrastructure lay the groundwork for multi-year compounding. The extended franchise and diversified generation portfolio reduce tail risks associated with regulatory cycles and energy transitions.

Across all horizons, the current price action—trading at a technical low with robust fundamental tailwinds—suggests a compelling window for considered accumulation, without the need for aggressive risk-taking typical of higher volatility sectors.

Is It the Right Time to Buy Manila Electric Company?

• Strong, recurring revenue and profit growth, with upside surprises on recent results and analyst expectations.
• Reinforced long-term operational certainty through a 25-year franchise extension.
• Solid, growing dividends and leadership in both regulated and growth-oriented segments.
• Attractive valuation metrics, supportive macro trends, and a liquidity profile that encourages broad participation.
• Potential for a technical inflection as oversold signals mature and medium-term catalysts approach.

While the technical outlook has been challenging in recent weeks, this is precisely when discerning investors have historically identified entry points that precede substantial upswings. With its forward earnings multiple at a notable discount, a robust dividend yield, and the ability to navigate sector transformations, Meralco seems poised for a new phase of strength in the Philippine equities landscape.

In summary, Manila Electric Company’s blend of stability, growth, and income makes it a stock that appears to represent an excellent opportunity for investors seeking both resilience and upside in a rapidly evolving sector. The combination of technical support, improving fundamentals, and powerful forthcoming catalysts suggest the current environment could well be a pivotal moment for long-term positioning in the Philippine utilities space.

Investors seeking to participate in the next leg of Philippine infrastructure and energy growth may find that Meralco stands at the confluence of defensive positioning and growth momentum, making a compelling case for renewed consideration at this stage of the market cycle.

How to buy Manila Electric Company stock in PH?

Buying shares of the Manila Electric Company (Meralco) online is a straightforward and secure process when you use a regulated broker in the Philippines. Today’s technology allows you to become a Meralco shareholder in just a few clicks, whether you want to own the physical shares (spot buying) or speculate on price movements through contracts for difference (CFDs). Spot buying gives you ownership and dividend rights, while CFD trading allows you to use leverage for higher potential returns (and risks). Before you invest, review the broker comparison further down this page for details on fees and service quality.

Spot Buying

Cash buying means you purchase actual Meralco shares (MER) listed on the Philippine Stock Exchange, and become a part-owner of the company. With this method, you can benefit from long-term price appreciation and receive dividends, a significant advantage given Meralco’s history of steady semi-annual payouts. Brokers typically charge a fixed commission per transaction (commonly around ₱20–₱50) plus a small percentage (about 0.25% of the trade amount).

Example

Suppose you want to invest $1,000 (about ₱56,000) and the Meralco share price is ₱539.00. Deducting an estimated ₱280 in total fees (₱50 commission + 0.25% of ₱56,000), you could buy approximately 103 shares.

• ✔️ Gain scenario: If the share price rises by 10%, your holdings would now be worth ₱61,594 (₱55,900 × 1.1), or roughly $1,100.
• Result: That’s a gross gain of $100—a +10% return on your investment (before taxes and other possible charges).

Trading via CFD

CFD trading (Contract for Difference) allows you to speculate on Meralco’s share price without owning the actual shares. Instead, you enter into a contract with the broker to exchange the difference in value from opening to closing your position. This method is popular for its flexibility, ability to go long or short, and—importantly—leverage, which multiplies both potential gains and losses. Fees for CFDs typically include the bid-ask spread and, if your position is open overnight, a daily financing charge.

Example

If you open a CFD position on Meralco with a $1,000 deposit (about ₱56,000) and use 5x leverage, your market exposure rises to $5,000 (₱280,000).

• ✔️ Gain scenario: If the stock price rises by 8%, the gain is 8% × 5 = 40%, totaling +$400 on your $1,000 stake (excluding spreads and overnight fees).
• Note: The impact of leverage means profits—and losses—are magnified, so risk management is essential.

Final advice

Before taking the plunge, it’s vital to compare brokers’ fees, features, and support—it can make a significant difference over time. Choose the method that matches your financial goals: spot buying is best suited for long-term investors seeking dividends and stable growth, while CFD trading appeals to those pursuing short-term, leveraged strategies. The right broker and approach depend on your objectives, experience, and risk appetite. To assist you in making the best decision, we invite you to consult our broker comparison table, available further down this page.

Our 7 tips for buying Manila Electric Company stock

The latest news about Manila Electric Company

Meralco posted strong Q1 2025 results, exceeding analyst expectations with double-digit income growth and rising revenues. The company reported a consolidated core net income of ₱11.2 billion, marking a robust 10.8% year-on-year increase, alongside ₱114.5 billion in revenues, up 10% from the same period last year. Notably, earnings per share rose by 11% to ₱9.91, and net income climbed 8.9% to ₱10.4 billion, reflecting the company’s ability to capture higher demand and manage costs effectively. This performance not only beat consensus estimates but also reiterated Meralco’s leading role in the Philippine utility sector.

Meralco’s franchise has been renewed for another 25 years, assuring regulatory stability and operational continuity until 2053. The Philippine Congress approved the early renewal of Meralco’s legislative franchise, beginning June 2028, which cements a uniquely long runway for continued operations. This legislative backing removes a critical overhang for shareholders and underpins investor confidence by guaranteeing ongoing access to its lucrative Metro Manila and regional service territories, bolstering broader investment and expansion plans.

The customer base expanded to 8.1 million, up 3% year-on-year, fueling growth in both sales volume and recurring revenue. This increased penetration allowed Meralco to raise total energy sales to 12,493 GWh during Q1 2025—a 1.5% increase over last year—and to implement an average retail rate rise to ₱11.06/kWh. The expansion of its service reach and customer acquisition demonstrates effective execution in capturing new demand, reinforcing Meralco’s dominant position in the Philippines’ rapidly urbanizing regions.

Strategic diversification advanced as MGEN acquired significant stakes in gas-fired power assets and LNG infrastructure. Through Chromite Gas Holdings Inc., Meralco PowerGen Corporation (MGEN) now holds a 40.2% effective interest in two gas-fired plants and an LNG regasification terminal, deepening its presence in cleaner, more flexible power generation. These moves support government energy transition goals, reduce exposure to coal, and position Meralco to benefit from shifting regulatory and consumer preferences within the Philippines.

Management issued a positive outlook for full-year 2025, projecting double-digit earnings growth and continued solid dividend yields. On the back of Q1 results and its strengthened asset base, Meralco’s leadership reaffirmed expectations of around 10% revenue growth and sustained double-digit earnings expansion through 2025. With a semi-annual dividend yield of 4.48% and a consistent dividend growth record, the company appeals strongly to income-focused investors seeking reliable returns in a stable regulatory climate.

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.