Manila Electric CoPHS:MER -1.21%93 Operating Margin % is 8.51% as of Mar. 2026, which is 9% below its 10-year median of 9.34. GuruFocus rates PHS:MER with a GF Score™ of 93/100 and a GF Value™ of ₱528.22 (Fairly Valued). The stock has 9 warning signs investors should review. Among 499 Utilities - Regulated companies, Manila Electric Co ranks worse than 63.73% on this metric.
Manila Electric Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Manila Electric Co's Operating Margin % or its related term are showing as below:
PHS:MER'
s Operating Margin % Range Over the Past 10 Years
Min: 4.73 Med: 9.34 Max: 10
Current: 9.63
PHS:MER's Operating Margin % is ranked worse than 63.73% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs PHS:MER: 9.63
Manila Electric Co's 5-Year Average Operating Margin % Growth Rate was 5.90% per year.
Manila Electric Co (PHS:MER) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Manila Electric Co Operating Margin % Related Terms
Manila Electric Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Manila Electric Co's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PHS:MER vs NEE, SO, DUK: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, Manila Electric Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Manila Electric Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Manila Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Manila Electric Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Manila Electric Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Manila Electric Co (PHS:MER) has a Operating Margin % of 8.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Manila Electric Co and its competitors. This is near median its historical median of 9.34. Over the past decade, Manila Electric Co's Operating Margin % has ranged from 4.73 to 10.00. According to the industry distribution chart, Manila Electric Co ranks #318 out of 499 companies in the Utilities - Regulated industry, placing it in the top 63.7%.
Is Manila Electric Co's Operating Margin % too high?
Manila Electric Co's current Operating Margin % of 8.51% is near median its 10-year median of 9.34. Over the past 10 years, this metric has ranged from a low of 4.73 to a high of 10.00. The Utilities - Regulated industry median Operating Margin % is 14.97. Manila Electric Co's value of 8.51% is 43.2% below this industry median. Based on the distribution chart, Manila Electric Co ranks #318 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Manila Electric Co has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Manila Electric Co's Operating Margin % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Manila Electric Co ranks #318 out of 499 companies for Operating Margin %. This places Manila Electric Co in the lower half of its industry. The industry median Operating Margin % is 14.97. Manila Electric Co's value of 8.51% is 43.2% below this benchmark. Historically, Manila Electric Co's own Operating Margin % has ranged from 4.73 to 10.00 over the past decade. While the company's 10-year median is 9.34 vs. the industry median of 14.97, Manila Electric Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Manila Electric Co's current Operating Margin % of 8.51% is 43.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Manila Electric Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Manila Electric Co's current Operating Margin % is 8.51%, which is near median its own 10-year median of 9.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Manila Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Manila Electric Co (PHS:MER) is currently considered Fairly Valued. The stock's GF Value™ is ₱528.22, compared to a current price of ₱573.00 — trading 8.5% above its estimated fair value. The current Operating Margin % is 8.51%, which is near median its 10-year median of 9.34 and 43.2% below the Utilities - Regulated industry median of 14.97. Manila Electric Co's overall GF Score™ is 93/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Manila Electric Co (PHS:MER), the current Operating Margin % is 8.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Manila Electric Co (PHS:MER) Overvalued in 2026?
Based on GuruFocus' analysis, Manila Electric Co stock appears to be overvalued.
The current stock price of ₱573.00 is trading 8.5% above its estimated GF Value™ of ₱528.22.
GuruFocus considers Manila Electric Co to be Fairly Valued.
Key valuation signals for PHS:MER:
Operating Margin %: 8.51% (near median its 10-year median of 9.34)
GF Value™: ₱528.22 vs. price of ₱573.00 (8.5% above fair value)
Industry Position: 43.2% below the Utilities - Regulated median (#318 of 499)
No single metric tells the full story. See the PHS:MER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Manila Electric Co is an electric utility company operating in the Philippines. Along with its subsidiaries, it is mainly engaged in the distribution and sale of electric energy through the distribution network facilities in its franchise area. The company's market is categorized into four classes, namely, residential, commercial, industrial, and streetlights. Additionally, it is involved in certain unregulated activities, which consist of power generation; retail electricity supply (RES); energy infrastructure, payment fulfilment, bills collection, after-the-meter and energy management, telecommunications services, insurance and re-insurance, and other businesses. The group's reportable segments are: Power and Other Services. The majority of its revenue is derived from the Power segment.
93GF Score
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