Should I buy SM Investments stock in 2025?

What is SM Investments?

How much is SM Investments stock?

The price of SM Investments stock is falling this week. As of today, SM trades at PHP 854.00, reflecting a 0.58% decline over the past 24 hours and a 3.27% drop over the past week.

With short-term volatility evident but strong long-term fundamentals, investors may see opportunities as the stock approaches key support levels.

Our full analysis on SM Investments stock

After an exhaustive review of SM Investments Corporation’s (SM) latest quarterly results and an in-depth comparative analysis of the stock’s performance over the past three years, we have synthesized insights from financial ratios, technical indicators, peer benchmarking, and market sentiment using our proprietary analytical models. The breadth of our investigation covers both the structural strengths and dynamic market factors shaping SM’s outlook. So, why might SM Investments stock once again become a strategic entry point into the Philippine conglomerate sector in 2025?

Recent Performance and Market Context

Despite prevailing macroeconomic uncertainties, SM Investments has exhibited remarkable resilience, particularly evident in its Q1 2025 results. The stock is currently trading at PHP 854.00, with a market capitalization of PHP 1.06 trillion, marking SM as one of the preeminent blue-chip choices on the Philippine Stock Exchange (PSE). While the year-to-date performance stands at -4.45% and the 1-year price return at -2.39%, these figures should be viewed within the context of a broader sector rotation and shifting investor preferences across Asian markets.

In Q1 2025, SM’s consolidated net income advanced by 9% year-on-year to PHP 20.1 billion, while revenues climbed 6% to PHP 152.0 billion. The core drivers were the robust retail segment (net income up 18%), sustained banking profit growth (BDO Unibank and China Banking Corporation), and continued resiliency in property (SM Prime Holdings). Importantly, SM announced its first-ever special dividend in May 2025—an unequivocal signal of financial strength and management confidence.

Sector-wide, the Philippine economy continues to benefit from recovering domestic consumption, growing remittances, and a stable monetary policy environment, all of which underpin an attractive macro backdrop for conglomerates with diversified exposure such as SM. The company’s 20th listing anniversary and the inclusion of a new independent director (Marife Zamora) further ensure continued strategic agility and strong corporate governance.

Technical Analysis

Technically, SM Investments presents intriguing characteristics for medium- to long-term positioning. The Relative Strength Index (RSI) stands at 39.82, signaling the stock is approaching oversold territory. Similarly, the Williams %R at -90.91 aligns with a classic oversold condition, often a precursor to bullish reversals. The Moving Average Convergence Divergence (MACD) remains negative (-3.30), but historical patterns suggest short-term selling pressure is abating as the price stabilizes around strong support zones.

From a moving average perspective, SM currently trades below its 20-, 50-, and 100-day moving averages, indicating recent downward momentum. However, the critical 200-day MA at PHP 832.66 now acts as a robust support, with the latest price action showing consolidation slightly above this key level. The recent low of PHP 851.50 offers a defined technical floor for risk management, while resistance at PHP 866.50 and PHP 871.88 (the 50-day MA) provides clear upside milestones. This technical structure—oversold readings combined with robust long-term support—suggests a favorable moment for strategic entry, particularly for investors anticipating a return to mean technical levels.

Fundamental Analysis

On a fundamental level, SM Investments showcases decisive strengths:

• Earnings Growth: The Q1 2025 net income increase of 9% is particularly impressive amid a challenging environment, affirming the depth and quality of its diversified model.
• Segment Resilience: The retail arm delivered an 18% surge in net income, while banking and property each reported double-digit profit growth—underscoring balanced revenue streams and insulation from sector-specific headwinds.
• Valuation: SM’s price-to-earnings (P/E) ratio of 12.46 is attractive relative to both historical averages and regional peers. With earnings per share at PHP 68.96 and a forward-looking analyst consensus targeting PHP 1,087.30 (+26.58% upside), the current valuation appears undemanding for a conglomerate of SM's stature.
• Structural Strengths: The conglomerate’s extensive physical footprint across malls, branches, and retail outlets delivers a competitive moat not easily replicated. SM’s strategic expansion toward 100 malls by 2027 confirms a long runway for growth.
• Brand and Market Share: SM is a household name in the Philippines, cementing customer loyalty and underwriting repeat business across key sectors.

Furthermore, a conservative balance sheet (31% net debt, 69% equity) stands out as a bulwark for stability and expansion.

Volume and Liquidity

Trading liquidity remains a strong positive for SM Investments, with an average daily volume of 329,500 shares over the past three months. This sustained turnover reflects ongoing institutional and retail participation, reinforcing the market’s confidence in SM as a reliable vehicle for both long-term capital appreciation and tactical trading.

The free float at 47.63% ensures sufficient depth and price discovery, while foreign investors can access the stock within a 40% foreign ownership cap. Such liquidity metrics are hallmarks of sustainably valued, widely followed large-caps, often cushioning short-term volatility and facilitating rapid capital deployment ahead of major corporate or economic catalysts.

Catalysts and Positive Outlook

Several concrete factors are positioned to serve as near- and medium-term growth levers:

• Special Dividend: The May 2025 special dividend is a noteworthy milestone, reflecting balance sheet strength and a willingness to enhance shareholder returns.
• Ongoing Expansion: The path towards 100 malls by 2027 underpins sustained top-line growth and geographic diversification, with rising domestic consumption as a strong secular tailwind.
• ESG Focus and Governance: Appointment of an independent female director demonstrates a commitment to diversity and governance best practices.
• Portfolio Diversification: Exposure to high-growth sectors such as logistics, geothermal energy, and digital financial services through portfolio investments creates optionality for future earnings enhancement.
• Enhanced Banking Performance: BDO Unibank and China Banking Corporation consistently outperform sector averages, positioning SM as a primary beneficiary of banking sector tailwinds.
• Strong Analyst Consensus: With 11 covering analysts and a consensus "BUY" rating, the stock enjoys enduring institutional support and a robust research following.

This constellation of positive developments, matched with favorable macro indicators—rising GDP, robust remittances, and steady interest rates—set the stage for renewed outperformance.

Investment Strategies

For investors looking to optimize entry and capture upside, consider the following:

• Short-term: The price currently hovers near oversold technical readings and major support zones (PHP 851.50 and the 200-day MA at PHP 832.66). This suggests an attractive tactical entry for rebound-focused traders. A break above PHP 866.50 (resistance) could trigger further technical buying.
• Medium-term: Investors anticipating positive news flow from Q2 and H1 2025 results, continued dividend announcements, or progress on expansion milestones may find the current consolidation phase a suitable accumulation window.
• Long-term: For those seeking a durable compounder with strong market position, undervalued relative multiples, and a demonstrable track record of risk-adjusted returns, SM Investments offers conditions highly conducive to patient wealth building. The strategic vision to increase its mall and portfolio footprint, combined with resilient defensive lines (retail and banking), aligns with multi-year thematic trends in Philippine consumer and financial sectors.

Positioning at or near key technical lows, particularly ahead of potential catalysts (earnings beats, expansion updates, governance announcements), appears well supported by both quantitative and qualitative analysis.

Is it the Right Time to Buy SM Investments?

In summary, SM Investments exemplifies a rare blend of structural resilience, diversified growth engines, and compelling valuation. Recent earnings strength, robust trading liquidity, and multiple imminent catalysts reinforce the case that SM could be entering a renewed phase of strategic relevance within the Philippine equities landscape. Current price levels, sitting just above major long-term support, seem to represent an excellent opportunity for well-calibrated entry, especially when contextualized against an analyst-backed upside of over 26% and a fortress-like balance sheet.

While global uncertainties and technical volatility may persist, the underlying fundamentals justify renewed interest in SM Investments. For investors seeking both stability and growth within a market-leading blue-chip, SM’s present consolidation may soon give way to a new bullish phase—one propelled by operational excellence and a dynamic local economic environment.

SM Investments stands as a cornerstone of the Philippine market whose attractive valuation, strong fundamentals, and outstanding management continue to signal significant upside potential for the vigilant investor.

How to buy SM Investments stock in PH?

Buying SM Investments Corporation (SM) stock online is a straightforward and secure process when you use a regulated Philippine broker. Whether you’re looking to invest for the long term or prefer active trading, you can choose between two main methods: purchasing shares directly (spot buying) or trading Contracts for Difference (CFDs) for more flexibility and leverage. Each method fits a different investor profile, so understanding their features is important. To help you get started, we will look below at the main differences and show you how to compare trusted brokers using a dedicated comparison tool further down the page.

Spot Buying: Cash Purchase of SM Investments Shares

When you buy SM Investments shares with cash, you become a partial owner of the company and benefit from any price increases and received dividends. This is the traditional way to invest and is perfect for long-term investors. Usually, brokers charge a fixed commission per order, typically around PHP 100–300 per transaction, depending on your chosen platform.

Important Example

Example: If the SM Investments share price is PHP 854.00, with PHP 1,000, you can buy about 1 share (since 1 share costs PHP 854.00) after accounting for a PHP 250 brokerage fee. Your remaining cash would cover the fee, and you would receive any future dividends for that share.
✔️ Gain scenario: If the share price rises by 10% to PHP 939.40, your shares are now worth PHP 939.40.
Result: That’s a gross gain of PHP 85.40 (about +10% on your investment, before fees).

Trading via CFD: Leverage and Flexibility

CFDs (Contracts for Difference) let you speculate on SM Investments’ price movement without owning the actual shares. This method appeals to active traders because you can profit from both rising and falling prices and use leverage to amplify your market exposure. The main costs for CFDs are the spread (the difference between buying and selling price) and overnight financing fees if you hold positions for more than a day.

Important Example

Example: You open a CFD position on SM Investments with a PHP 1,000 deposit and 5x leverage. This gives you market exposure of PHP 5,000.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a gain of PHP 400 on your PHP 1,000 stake (excluding CFD fees).

Final Advice: Compare and Choose What Suits You

Before investing, it’s important to carefully compare brokers’ fees, minimum investment requirements, and available features. Some may offer more competitive rates for cash orders, while others specialise in fast and flexible CFD trading. Your investment decision should always be guided by your financial goals and risk tolerance. To help you make the best choice, a broker comparison table is provided further down the page. Take a moment to review your options so you can invest confidently in SM Investments, whether you’re building long-term wealth or seeking trading opportunities.

Our 7 tips for buying SM Investments stock

The latest news about SM Investments

SM Investments declared its first-ever special dividend in May 2025, signaling robust financial health and shareholder confidence. This special dividend, unprecedented for the company, underscores the strength of its balance sheet and ongoing commitment to rewarding investors. It coincides with strong Q1 earnings, and management has highlighted the company’s capacity to sustain healthy cash flows even amidst challenging economic conditions in the Philippines. The move enhances SM’s appeal for yield-seeking investors and reflects improved capital return discipline that could support its attractiveness among professional analysts and institutional investors.

The company reported strong first-quarter 2025 results, highlighted by a 9% increase in net income year-on-year. Consolidated net income reached PHP 20.1 billion compared to PHP 18.4 billion in the same period last year, while revenues rose 6% to PHP 152.0 billion. This performance is remarkable given persistent macroeconomic headwinds, with robust double-digit growth across the retail, banking, and property segments. SM’s major investments, particularly in BDO Unibank and SM Prime Holdings, have delivered high earnings growth and healthy return profiles. This resilience strengthens SM’s position as a diversified conglomerate and underscores the stability of its foundational businesses within the Philippine market.

Analyst consensus remains solidly positive, with an average target price offering over 26% upside from current levels. According to the latest data compiled by local and international brokerage firms, the consensus rating is ‘Buy’, underpinned by 11 analysts, with an average 12-month target price of PHP 1,087.30. This optimistic outlook reflects expectations of sustained growth, improved profitability, and strategic expansion across SM’s core business segments. The current P/E stands attractively below regional and global conglomerate averages, providing further valuation support for the stock in the eyes of market professionals.

SM Investments marked its 20th anniversary of PSE listing, highlighting two decades of steady value creation and market leadership in the Philippines. The company commemorated its twenty-year history as a listed entity, emphasizing both long-term expansion and the role it has played in the Philippine economy. Management cited the ongoing strategy to extend its physical footprint nationwide—including a goal of 100 malls by 2027—and focus on strengthening retail, property, and banking operations. This legacy, coupled with measured board renewal and recently enhanced gender diversity, reinforces SM’s commitment to sustainable growth and good corporate governance in a local context.

Technical signals indicate short-term selling pressure, but long-term support remains solid and momentum could shift on positive catalysts. While SM shares have experienced a short-term downtrend, trading below key moving averages and exhibiting oversold indicators such as an RSI near 40 and a Williams %R signaling possible rebound points, the price remains above its 200-day moving average. This long-term support level and an improving outlook for earnings provide potential for a technical and fundamental recovery if positive news or further strong quarterly results materialize. These dynamics offer a constructive backdrop for medium- to long-term investors focused on Philippine equities.

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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.