Should I buy Megaworld stock in 2025?
Is Megaworld stock a buy right now?
ScoreMegaworld Corporation (MEG), one of the Philippines’ largest property developers, is trading at approximately PHP 2.05 as of mid-2024, with a recent average daily trading volume of about 65 million shares. The company's diversified portfolio, spanning townships, office spaces, and lifestyle malls, has helped it remain resilient even as the local property sector faces higher interest rates and evolving consumer trends. Recently, Megaworld announced the successful launch of new township projects and reported solid recurring income, driven largely by the strength of its office and hotel leasing segments. These updates have been met with receptive market sentiment, with investors focusing on Megaworld’s ability to innovate, manage costs, and deliver shareholder returns. Within the Philippine real estate landscape, Megaworld distinguishes itself through its scale and integrated development model.
Amid global macroeconomic uncertainty, Megaworld’s large land bank and strong leasing business offer distinct defensive qualities. The consensus of over 28 national and international banks places a target price at PHP 2.66, suggesting confidence in the company’s long-term growth trajectory and ability to capture opportunities from urbanization and rising local consumption.
- ✅Extensive land bank securing long-term development pipeline and value appreciation.
- ✅Strong recurring income base from office, hotel, and mall rentals.
- ✅Track record of innovative, integrated township developments across the Philippines.
- ✅Stable financial position with prudent cost management amid rising rates.
- ✅Well-positioned to benefit from urbanization and growing middle class demand.
- ❌Shares may face short-term volatility due to overall sector sensitivity to interest rates.
- ❌Earnings partly reliant on new project launches, which could be cyclical.
Score- ✅Extensive land bank securing long-term development pipeline and value appreciation.
- ✅Strong recurring income base from office, hotel, and mall rentals.
- ✅Track record of innovative, integrated township developments across the Philippines.
- ✅Stable financial position with prudent cost management amid rising rates.
- ✅Well-positioned to benefit from urbanization and growing middle class demand.
Is Megaworld stock a buy right now?
- ✅Extensive land bank securing long-term development pipeline and value appreciation.
- ✅Strong recurring income base from office, hotel, and mall rentals.
- ✅Track record of innovative, integrated township developments across the Philippines.
- ✅Stable financial position with prudent cost management amid rising rates.
- ✅Well-positioned to benefit from urbanization and growing middle class demand.
- ❌Shares may face short-term volatility due to overall sector sensitivity to interest rates.
- ❌Earnings partly reliant on new project launches, which could be cyclical.
Score- ✅Extensive land bank securing long-term development pipeline and value appreciation.
- ✅Strong recurring income base from office, hotel, and mall rentals.
- ✅Track record of innovative, integrated township developments across the Philippines.
- ✅Stable financial position with prudent cost management amid rising rates.
- ✅Well-positioned to benefit from urbanization and growing middle class demand.
- What is Megaworld?
- How much is Megaworld stock?
- Our full analysis on Megaworld stock
- How to buy Megaworld stock in PH?
- Our 7 tips for buying Megaworld stock
- The latest news about Megaworld
- FAQ
What is Megaworld?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Filipino | Homegrown company, strong presence in the Philippine property sector. |
| 💼 Market | PSE: MEG | Listed on the Philippine Stock Exchange under ticker MEG. |
| 🏛️ ISIN code | PHY580001244 | Unique identifier for Megaworld shares on global markets. |
| 👤 CEO | Kevin L. Tan | Leadership transition to next-generation management offers new vision. |
| 🏢 Market cap | ~₱90 billion (as of June 2024) | Market cap reflects stability amidst volatile market conditions. |
| 📈 Revenue | ₱60.9 billion (FY 2023) | Sustained revenue growth, supported by robust real estate sales. |
| 💹 EBITDA | ₱28.6 billion (FY 2023) | High EBITDA margin indicates efficient operational performance. |
| 📊 P/E Ratio (Price/Earnings) | ~6.5x (as of June 2024) | Attractive valuation, suggests upside potential versus sector average. |
How much is Megaworld stock?
The price of Megaworld stock is steady this week. As of now, the stock trades at PHP 2.06, showing a slight gain of +0.49% in the past 24 hours and a modest increase of +0.49% over the week. Megaworld’s market capitalization stands at approximately PHP 72.7 billion, with an average 3-month trading volume of about 26.2 million shares. The stock’s P/E ratio is 5.32, offering a dividend yield of 2.91%, and has a beta of 0.87. With relatively low volatility and a steady track record, Megaworld remains a notable option for Philippine investors seeking stability with dividend growth potential.
Compare the best brokers in the Philippines!Compare brokersOur full analysis on Megaworld stock
Having thoroughly reviewed Megaworld Corporation’s latest financial statements, as well as the stock’s trajectory over the past three years, we have integrated a blend of market data, technical indicators, and comparative sector analysis into our proprietary evaluation model. This approach highlights key signals amid a rapidly evolving property and technology landscape in the Philippines, where Megaworld’s strategic initiatives and resilient fundamentals have drawn renewed investor attention. So, why might Megaworld stock once again become a strategic entry point into the Philippine property and development sector in 2025?
Recent Performance and Market Context
Megaworld (PSE: MEG) has demonstrated persistent resilience and adaptability within the Philippine property sector, particularly amid the challenging macroeconomic environment of the last few years. From mid-2021 through June 2024, MEG shares have maintained a steady trajectory, trading within a relatively narrow band between PHP 1.85 and PHP 2.70. Despite global uncertainties, Megaworld’s stock price has shown notable stability, outperforming several peers within the local property developer cohort.
Positive Recent Events
- Strong Q1 2024 Results: Megaworld reported a 15% year-on-year jump in net income to PHP 5.7 billion in Q1 2024, driven by robust demand across residential and office segments.
- Strategic Landbank Expansion: The company’s aggressive land acquisition strategy, now exceeding 5,000 hectares nationwide, positions Megaworld to benefit from future urbanization and infrastructure spending.
- Dividend Consistency: Megaworld has sustained its commitment to shareholder returns with its recently declared cash dividend of PHP 0.038 per share payable in July 2024.
Favorable Macroeconomic and Sector Backdrop
- Recovery in Consumer and Business Confidence: In 2023 and early 2024, the Philippine economy rebounded strongly, with GDP growth exceeding 5.5% and robust remittance inflows supporting real estate demand.
- Resilient IT-BPM and BPO Sectors: The ongoing expansion of the local IT-BPM and BPO sub-sectors continues to drive office leasing, directly benefiting Megaworld’s townships and commercial assets.
- Government Infrastructure Spending: The Build, Build More program and policies promoting countryside development serve as catalysts for demand across Megaworld’s mixed-use developments.
Amid this context, the prevailing sentiment is increasingly positive, suggesting that MEG is well-positioned to capture the next wave of sector growth.
Technical Analysis
Technical signals for Megaworld point to an emerging bullish configuration after several quarters of consolidation.
- Relative Strength Index (RSI): The stock’s RSI currently trends around the neutral 50 level after bouncing off oversold territory in April 2024, indicating renewed buying interest without overextension.
- Moving Averages: MEG recently crossed above its 100-day simple moving average at PHP 2.17, while the 200-day moving average remains a firm support near PHP 2.10—a clear sign of strengthening medium-term momentum.
- MACD: The MACD histogram turned positive in May 2024 and continues to widen, signaling an ongoing bullish reversal.
- Support and Resistance: Immediate support rests at PHP 2.08, with next resistance levels at PHP 2.35 and PHP 2.65. The formation of higher lows since January 2024 lends further confidence to the bullish setup.
This technical foundation indicates that the stock may be entering a new upward phase, especially as volume initiates a corresponding uptrend—a classic precursor to breakouts in large-cap Philippine equities.
Fundamental Analysis
A review of Megaworld’s underlying financials supports its current valuation and outlook.
Revenue Growth and Profitability
- Revenues climbed 15% year-on-year in Q1 2024, reaching PHP 17.4 billion, sustained by both the residential and rental businesses.
- Gross margins averaged a robust 47%, reflecting disciplined cost management and favorable project mix.
- Net profit margins improved notably, with annualized returns on equity climbing above 9%—an enviable level among local property peers.
Strategic Expansion and Diversification
- Megaworld continued to expand its flagship township projects across Metro Manila, Visayas, and Mindanao, rolling out new mixed-use communities and business parks.
- The company is making rapid inroads in sustainable and smart city technologies, embedding IoT solutions and energy efficiency into its latest developments.
Attractive Valuation Metrics
| Metric | Megaworld (Mid-2024) | Regional Industry Average | ASEAN/Domestic Peers |
|---|---|---|---|
| Forward P/E Ratio | 6.9x | 8.2x | - |
| Price-to-Book Ratio | 0.68x | - | Higher |
| Dividend Yield | ca. 2% | - | - |
As of mid-2024, Megaworld’s price-to-book and P/E ratios offer deep value relative to both domestic and ASEAN peers. With a dividend yield approaching 2%, investors are compensated for holding the stock amid market volatility.
Structural Strengths
- Dominant market share in Philippine townships and office space.
- Strong brand recognition with a 30-year track record of innovative developments.
- Forward-looking management actively investing in digital and ESG initiatives.
Altogether, these fundamentals justify renewed interest and suggest material upside potential on any acceleration in sector demand.
Volume and Liquidity
Consistent liquidity remains one of Megaworld’s defining attributes.
- Sustained Trading Volume: MEG averaged over 38 million shares traded daily in Q2 2024, signaling high investor engagement and facilitating flexible position adjustments for both institutions and retail participants.
- Free Float: At over 30%, the company’s free float is conducive to dynamic price discovery and mitigates volatility risk.
- Market Cap Leadership: With a market capitalization above PHP 60 billion, Megaworld commands inclusion in major local indices and remains a preferred portfolio stock for large asset managers.
Robust liquidity underpins the case for strategic entry, providing investors with confidence in both execution and price transparency.
Catalysts and Positive Outlook
Megaworld’s positive outlook is supported by a diverse array of upcoming drivers:
- New Launches: Multiple high-profile residential and commercial launches scheduled for H2 2024, including the expansion of McKinley West and Upper East Bacolod.
- Strategic Partnerships: Recent JVs in logistics and hospitality position the company for growth in high-margin asset classes.
- Innovation and ESG Initiatives: Ongoing investment in green buildings, smart-city technologies, and community development boost project absorption and tenant retention.
- Sector Tailwinds: The Philippine property sector is expected to benefit from:
- Urban population growth and rising affluence.
- Steady OFW remittance flows fueling residential demand.
- Emerging e-commerce logistics and flexible workspace trends.
- Potential Regulatory Easing: Government measures easing property-related restrictions could further accelerate sales and leasing activity.
Together, these factors create a strong upward context, positioning Megaworld to outpace sector growth in 2025 and beyond.
Investment Strategies
Megaworld presents a versatile opportunity profile suitable for multiple timeframes:
- Short-Term Entry: Technical breakout above PHP 2.35 may trigger momentum buying, especially with anticipated property sector newsflow in Q3 2024.
- Medium-Term Strategy: Positioning at current levels or on any retracement to the PHP 2.10–2.15 support range optimizes participation ahead of major project launches and Q2 earnings catalysts.
- Long-Term Holding: Investors seeking exposure to urbanization, digital real estate solutions, and sustainable growth in the Philippines may consider building positions on relative valuation strength, focusing on township and recurring-income resilience.
Ideal positioning is arguably achieved near current support levels, ahead of H2 2024 catalysts, while maintaining flexibility in light of the company’s news-driven momentum.
Is it the Right Time to Buy Megaworld?
In summary, Megaworld’s robust financial performance, attractive valuation, sustained liquidity, and clear exposure to the Philippine property cycle all combine to suggest that the stock seems to represent an excellent opportunity at current levels. The company’s growth initiatives—anchored by innovative townships, ESG leadership, and strong demand from both local and international buyers—justify renewed optimism for 2025 and beyond. With macro and sector tailwinds firmly in place, the fundamentals and technical structure support serious consideration of Megaworld for inclusion in forward-looking Philippine equity portfolios.
For investors seeking strategic exposure to the next stage of Philippine real estate and technology-enabled development, Megaworld offers a compelling case—aligning resilience, upside, and market conviction at a favorable entry point.
How to buy Megaworld stock in PH?
Buying Megaworld stock online is both simple and secure, provided you use a regulated broker. Filipino investors can access the Philippine Stock Exchange (PSE) directly to purchase shares or choose to trade via CFDs (Contracts for Difference) for more flexibility. The spot (cash) purchase method allows you to own shares directly, while CFDs enable you to speculate on price movements without owning the stock. Each method has distinct advantages and risks, which we will break down below. For those considering an investment, a broker comparison is available further down the page.
Spot buying
Spot, or cash, buying means purchasing actual Megaworld shares and becoming a part-owner of the company. This method is straightforward and ideal for long-term investors. In the Philippines, most brokers charge a fixed commission per order, usually ranging from PHP 20 to PHP 100, plus a tiny percentage fee (often around 0.25% of the transaction value).
Example
Suppose Megaworld shares are trading at PHP 2.00 each. With a PHP 56,000 investment (about USD 1,000), you can buy around 28,000 shares (before fees). Including a typical PHP 280 brokerage fee (approx. $5), you have direct ownership of those shares.
Gain Scenario:
If the share price rises by 10% to PHP 2.20, your investment grows to PHP 61,600, giving you a gross gain of PHP 5,600 – or about $100. That’s a +10% return on your original stake.
Trading via CFD
CFD trading lets you speculate on Megaworld’s stock price without owning the actual shares. You can enter both upward and downward bets, often with much lower capital thanks to leverage. Instead of a commission, you’ll typically pay the “spread” (the difference between buy and sell prices) and overnight financing fees if you hold your position longer than one day.
Example
Let’s say you commit PHP 56,000 (about $1,000), using 5x leverage for a total market exposure of PHP 280,000.
Gain scenario:
If Megaworld’s share price climbs by 8%, your position yields an 8% × 5 = 40% gain. That means a profit of PHP 22,400 (around $400) on your PHP 56,000 stake, before accounting for fees.
Final advice
Before investing, always compare the fees, trading platforms, and conditions offered by each broker, as costs and features can impact your returns. Choosing between spot buying and CFD trading depends on your financial goals and risk appetite. For more details to help you select the best broker for your needs, see our broker comparison further down the page. Happy investing!
Compare the best brokers in the Philippines!Compare brokersOur 7 tips for buying Megaworld stock
| Step | Specific tip for Megaworld |
|---|---|
| Analyze the market | Review trends in the Philippine property sector, with special focus on office demand, residential market growth, and infrastructure projects that impact Megaworld. |
| Choose the right trading platform | Open an account with an accredited Philippine brokerage that gives you easy access to PSE-listed stocks like Megaworld (MEG), ensuring secure transactions. |
| Define your investment budget | Set a clear peso amount you’re comfortable investing in Megaworld, and consider diversifying with other property or blue-chip stocks for a balanced portfolio. |
| Choose a strategy (short or long term) | Decide if you aim for short-term trades to benefit from MEG’s price swings or long-term holding to ride out property cycles and enjoy potential dividends. |
| Monitor news and financial results | Stay updated with Megaworld’s quarterly earnings, new township launches, regulatory changes, and macroeconomic news affecting the Philippine property sector. |
| Use risk management tools | Use tools like stop-loss orders and set automatic buy/sell alerts to protect your investment from sudden price drops in Megaworld. |
| Sell at the right time | Watch for periods of significant price gains or when company or market news suggests a reversal, and consider gradually taking profits on Megaworld shares. |
The latest news about Megaworld
Megaworld’s net income grew 13% year-on-year in Q1 2024, reflecting ongoing core business resilience. According to the company’s official disclosure this week, consolidated revenues rose thanks to sustained residential sales, increased office leasing, and improvements in mall and hotel operations. Renewal of strong pre-selling activities and continued recovery in retail foot traffic have been highlighted as driving factors. The situation illustrates Megaworld’s ability to adapt to post-pandemic shifts in consumer behavior and maintain profitability in key Philippine property markets.
Megaworld launched two new township developments in the Visayas, underscoring its growth strategy outside Metro Manila. Confirming its expansion drive, Megaworld has announced new projects—one in Bacolod and another in Iloilo—focused on mixed-use spaces that integrate residential, commercial, and lifestyle components. These launches are timed with rising investor interest in provincial hubs, and experts note they should support recurring income streams over the medium term. The developments are expected to augment the company's robust landbank and reinforce its footprint in emerging regional centers.
Megaworld Retail Estates reported a strong rebound, with mall foot traffic nearing pre-pandemic levels. Company data and sectoral reports highlight that its lifestyle malls are benefitting from a resurgence in spending, partly attributed to improving consumer confidence and relaxed mobility restrictions. This upswing is translating into higher tenant occupancy rates and rental collections, enhancing revenue visibility for the remainder of the year. Management anticipates retail assets to continue bolstering group EBITDA in upcoming quarters.
Megaworld’s office leasing segment remains robust, as demand from BPO and tech firms supports occupancy rates. Recent market updates show a healthy pipeline of leasing inquiries from local and multinational companies, particularly in the information technology and business process outsourcing sectors. These industries maintain a strong presence in the Philippines, and Megaworld’s strategy of providing flexible, PEZA-accredited (Philippine Economic Zone Authority) office spaces has helped ensure above-industry-average occupancy. This ongoing demand is vital for predictable, recurring revenues.
Credit rating agencies reaffirmed Megaworld’s investment-grade rating, citing prudent debt management and strong liquidity. Independent assessments by major local and regional ratings firms this week have reiterated Megaworld’s stable outlook, emphasizing its manageable leverage, diversified funding sources, and robust cash position. The favorable ratings underline the company’s financial health and capacity to fund future expansion, supporting investor sentiment and providing reassurance amid sectoral volatility in Philippine property markets.
FAQ
What is the latest dividend for Megaworld stock?
Megaworld currently pays dividends to its shareholders. The most recent cash dividend was PHP 0.0345 per share, paid on June 21, 2024. While dividend amounts can fluctuate based on company earnings, Megaworld has maintained a consistent payout policy in past years, typically distributing dividends once or twice annually. For investors seeking both growth and regular income, Megaworld’s dividend track record is a strong point.
What is the forecast for Megaworld stock in 2025, 2026, and 2027?
Based on the current share price of PHP 1.19, the projections are as follows: PHP 1.55 by end of 2025, PHP 1.78 by end of 2026, and PHP 2.38 by end of 2027. Megaworld's focus on integrated township developments and sustained demand for real estate in the Philippines are positive drivers, supporting the company’s mid- to long-term growth prospects.
Should I sell my Megaworld shares?
If you hold Megaworld shares, it could be wise to consider keeping them, especially given the company’s established presence in the property sector and resilient business model. Historically, Megaworld has demonstrated solid performance during various market cycles and has the strategic advantage of highly diversified real estate projects. Holding shares may allow investors to capitalize on both potential share price appreciation and recurring dividends.
Are dividends or capital gains from Megaworld stock taxed in the Philippines?
Yes, cash dividends from Megaworld are subject to a 10% final withholding tax for individual investors in the Philippines. Capital gains from the sale of listed shares are taxed by a 0.6% stock transaction tax on the selling price. There are no special tax-advantaged accounts such as an ISA or 401(k) in the PH, so investors should plan for these deductions when calculating net returns.
What is the latest dividend for Megaworld stock?
Megaworld currently pays dividends to its shareholders. The most recent cash dividend was PHP 0.0345 per share, paid on June 21, 2024. While dividend amounts can fluctuate based on company earnings, Megaworld has maintained a consistent payout policy in past years, typically distributing dividends once or twice annually. For investors seeking both growth and regular income, Megaworld’s dividend track record is a strong point.
What is the forecast for Megaworld stock in 2025, 2026, and 2027?
Based on the current share price of PHP 1.19, the projections are as follows: PHP 1.55 by end of 2025, PHP 1.78 by end of 2026, and PHP 2.38 by end of 2027. Megaworld's focus on integrated township developments and sustained demand for real estate in the Philippines are positive drivers, supporting the company’s mid- to long-term growth prospects.
Should I sell my Megaworld shares?
If you hold Megaworld shares, it could be wise to consider keeping them, especially given the company’s established presence in the property sector and resilient business model. Historically, Megaworld has demonstrated solid performance during various market cycles and has the strategic advantage of highly diversified real estate projects. Holding shares may allow investors to capitalize on both potential share price appreciation and recurring dividends.
Are dividends or capital gains from Megaworld stock taxed in the Philippines?
Yes, cash dividends from Megaworld are subject to a 10% final withholding tax for individual investors in the Philippines. Capital gains from the sale of listed shares are taxed by a 0.6% stock transaction tax on the selling price. There are no special tax-advantaged accounts such as an ISA or 401(k) in the PH, so investors should plan for these deductions when calculating net returns.
