Fact based stock research
Manila Electric (PSE:MER)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Manila Electric stock research in summary

meralco.com.ph

ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Manila Electric (Electric Utilities, Philippines) shares have above-average financial characteristics compared with similar stocks. Shares of Manila Electric are low in value (priced high) with a consolidated Value Rank of 48 (worse than 52% of alternatives), and are riskily financed (Safety Rank of 48, which means above-average debt burdens) but show above-average growth (Growth Rank of 80). ...read more

RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Manila Electric's financial characteristics. As the company Manila Electric shows low value with an Obermatt Value Rank of 48 (52% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 80% of comparable companies (Obermatt Growth Rank is 80). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 48 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Manila Electric, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Philippines
Industry	Electric Utilities
Index	Good Governace Growth Markets
Size class	X-Large

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Research History: Manila Electric

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	38	51	n/a
GROWTH
GROWTH	9	61	41	n/a
SAFETY
SAFETY	77	61	45	n/a
SENTIMENT
SENTIMENT	n/a	78	88	^new
360° VIEW
360° VIEW	n/a	82	63	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Manila Electric is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	38	51	n/a
GROWTH
GROWTH	9	61	41	n/a
SAFETY
SAFETY	77	61	45	n/a
COMBINED
COMBINED	35	54	32	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Manila Electric the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 48 (worse than 52% compared with alternatives), Manila Electric shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Manila Electric. Price-to-Sales (P/S) is 77, which means that the stock price compared with what market professionals expect for future sales is lower than for 77% of comparable companies, indicating a good value concerning Manila Electric's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 68, which means that dividends are expected to be higher than for 68% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 91% of alternatives (only 9% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 53% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 48, is a hold recommendation based on Manila Electric's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	58	72	78	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	39	35	47	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	8	10	11	n/a
DIVIDEND YIELD
DIVIDEND YIELD	58	69	71	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39	38	51	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Manila Electric; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 80 (better than 80% compared with alternatives) for 2025, Manila Electric shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Manila Electric. Profit Growth has a rank of 58 which means that currently professionals expect the company to grow its profits more than 58% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 98, and Stock Returns has a rank of 58 which means that the stock returns have recently been above 58% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 33 (67% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 80, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	22	55	29	n/a
PROFIT GROWTH
PROFIT GROWTH	n/a	44	55	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	46	33	n/a
STOCK RETURNS
STOCK RETURNS	50	65	65	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	9	61	41	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Manila Electric.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 48 (better than 48% compared with alternatives), the company Manila Electric has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Manila Electric is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Manila Electric. Leverage is at a rank of 59, meaning the company has a below-average debt-to-equity ratio. It has less debt than 59% of its competitors. Liquidity is also good at a rank of 84, meaning the company generates more profit to service its debt than 84% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 6, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 48 (worse than 52% compared with alternatives), Manila Electric has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Manila Electric. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Manila Electric and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	90	70	54	n/a
REFINANCING
REFINANCING	6	11	7	n/a
LIQUIDITY
LIQUIDITY	94	91	85	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77	61	45	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Manila Electric and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	41	60	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	67	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	59	^new
MARKET PULSE
MARKET PULSE	n/a	65	87	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	78	88	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Manila Electric.
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