El Al (ELAL) AI Stock Analysis

• Market Cap: $7.78B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.33
• Revenue Growth: 12.94%
• EPS Growth: 3.96%
• Country: IL
• Employees: 3,013
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): N/A
• Shares Outstanding: 550,667,300
• 10 Day Avg. Volume: 3,247,392
• 30 Day Avg. Volume: 2,623,762
• PEG Ratio: <0.01
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 0.65
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: 6.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 1,657.00 ▲(19.73% Upside)

El Al's stock score is primarily driven by its strong valuation, indicating potential undervaluation, and positive technical indicators suggesting bullish momentum. However, financial performance concerns, particularly high leverage and declining revenue growth, pose risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Profit Margins

Strong profit margins indicate operational efficiency and the ability to maintain profitability despite revenue challenges.

Operational Efficiency

High EBIT and EBITDA margins reflect effective cost management and operational efficiency, supporting long-term profitability.

Revenue Diversification

Diverse revenue streams reduce dependency on any single source, enhancing resilience against market fluctuations.

Negative Factors

High Leverage

Substantial debt levels can limit financial flexibility and increase risk during economic downturns, impacting long-term stability.

Declining Revenue Growth

Negative revenue growth suggests challenges in market expansion or competitive pressures, potentially affecting future earnings.

Free Cash Flow Decline

Decreasing free cash flow growth can constrain investment in growth opportunities and affect long-term financial health.

El Al Business Overview & Revenue Model

Company Description

El Al, the flagship airline of Israel, operates in the aviation sector, providing passenger and cargo air transportation services. Founded in 1948, El Al is known for its extensive network of routes connecting Israel to major cities around the globe, with a focus on North America, Europe, and Asia. The airline is recognized for its commitment to safety, customer service, and the unique needs of its Israeli clientele, including kosher meals and religious accommodations.

How the Company Makes Money

El Al generates revenue primarily through the sale of passenger tickets and cargo services. The airline's main revenue stream comes from its passenger operations, where it offers both economy and premium class services. Additional revenue is derived from cargo transportation, which includes shipping goods internationally. The company also monetizes ancillary services, such as seat selection, extra baggage fees, and in-flight purchases. Partnerships with travel agencies and alliances with other airlines enhance its market reach and contribute to its earnings. Furthermore, El Al has loyalty programs that encourage repeat business, which plays a significant role in its financial performance.

El Al Financial Statement Overview

Summary

El Al demonstrates strong profitability with healthy margins, but faces challenges with declining revenue growth and high leverage. The balance sheet reflects significant debt, which could impact financial flexibility. Cash flow generation is moderate, but the decline in free cash flow growth is a concern. Overall, while the company shows operational efficiency, the financial risks associated with high leverage and declining revenue growth need careful management.

Income Statement

El Al's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth rate at -1.8%, but the company maintains a healthy gross profit margin of 31.9% and a net profit margin of 16.0%. The EBIT and EBITDA margins are strong at 22.7% and 29.7%, respectively, indicating efficient operations. However, the negative revenue growth is a concern that could impact future profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.07, indicating significant leverage, which poses a risk in volatile market conditions. The return on equity is robust at 119.6%, suggesting effective use of equity to generate profits. However, the equity ratio is low, reflecting a heavy reliance on debt financing, which could affect financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -11.0%, which is concerning. The operating cash flow to net income ratio is 0.65, indicating moderate cash generation efficiency. The free cash flow to net income ratio is 0.80, suggesting that a substantial portion of net income is converted into free cash flow. Despite these strengths, the negative growth in free cash flow is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.40B	3.43B	2.50B	1.99B	857.17M	623.08M
Gross Profit	906.70M	962.60M	396.00M	309.37M	-103.31M	-177.33M
EBITDA	949.60M	1.06B	509.20M	326.70M	-84.10M	-224.83M
Net Income	470.20M	541.40M	112.60M	108.70M	-413.04M	-531.04M
Balance Sheet
Total Assets	4.91B	4.38B	3.32B	3.19B	2.83B	3.01B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.40B	405.70M	283.42M	90.53M	80.23M
Total Debt	1.40B	1.53B	1.91B	2.09B	2.19B	2.22B
Total Liabilities	4.12B	3.85B	3.53B	3.54B	3.38B	3.26B
Stockholders Equity	800.40M	545.90M	-187.30M	-320.88M	-549.49M	-256.89M
Cash Flow
Free Cash Flow	1.01B	1.24B	324.70M	246.76M	-21.11M	-257.67M
Operating Cash Flow	1.38B	1.45B	455.50M	312.89M	-558.00K	-138.82M
Investing Cash Flow	-806.10M	-1.11B	-174.50M	-59.49M	7.94M	-96.99M
Financing Cash Flow	-213.00M	-198.10M	-179.10M	-56.10M	15.17M	73.20M

El Al Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1384.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ELAL, the sentiment is Negative. The current price of 1384 is below the 20-day moving average (MA) of 1454.15, below the 50-day MA of 1431.42, and above the 200-day MA of 1284.42, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 46.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ELAL.

El Al Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELAL	69 Neutral	$7.78B	3.75	92.10%	―	12.94%	3.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISRG	55 Neutral	462.48M	-129.30	―	―	―	―

El Al Corporate Events

El Al Israel Airlines Reports Challenging Financial Period

El Al Israel Airlines is a prominent airline company based in Israel, operating in the aviation industry, known for its comprehensive flight services and strategic partnerships. The latest earnings report for El Al Israel Airlines highlights a challenging financial period, with a decrease in key performance metrics compared to the previous year. The company reported a decline in revenue and EBITDA, reflecting the ongoing difficulties in the aviation sector. Key financial metrics showed a reduction in total revenue and EBITDA, with the company facing increased operational costs and a drop in passenger numbers. Despite these challenges, El Al is focusing on strategic initiatives to enhance operational efficiency and expand its market presence. Looking forward, El Al’s management remains cautiously optimistic, focusing on strategic partnerships and operational improvements to navigate the current economic landscape and improve financial performance in the coming quarters.