El Al (ELAL) AI Stock Analysis

• Market Cap: 7.31B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.64
• 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): 41.80
• Shares Outstanding: 550,637,200
• 10 Day Avg. Volume: 3,081,928
• 30 Day Avg. Volume: 2,181,277
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 1,398.92
• Price Target Upside: 5.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: 1,407.00 ▲(6.03% Upside)

El Al's stock score is primarily driven by its strong valuation, with a low P/E ratio indicating potential undervaluation. Technical analysis suggests a possible rebound, supported by positive MACD and oversold RSI. However, financial performance is a concern due to high leverage and declining revenue growth, which could impact future stability.

El Al Business Overview & Revenue Model

Company Description

El Al Israel Airlines Ltd., together with its subsidiaries, provides passengers and cargo transportation services. The company operates flights on passenger aircraft to approximately 40 direct destinations in 26 countries in Europe, the United States and Canada, the Far East, Central Asia, and South Africa. It also offers aircraft maintenance services in airport; sells duty-free products; manages travel agencies; and produces and supplies prepared kosher meals to airlines. In addition, the company provides catering services to institutions; and markets tour packages and airline tickets to travel agents and individual passengers, as well as operates various restaurants. El Al Israel Airlines Ltd. was incorporated in 1948 and is based in Lod, Israel.

How the Company Makes Money

El Al generates revenue primarily through the sale of airline tickets for both passenger and cargo services. Key revenue streams include passenger ticket sales, cargo transport fees, and ancillary services such as in-flight sales and extra baggage fees. The airline also earns money through partnerships and codeshare agreements with other airlines, enhancing its route network and offering more travel options to its customers. Additionally, El Al's frequent flyer program, Matmid, contributes to its earnings by fostering customer loyalty and encouraging repeat business. Factors such as seasonal travel demand, fuel prices, and geopolitical conditions can significantly impact the company's revenue.

El Al Financial Statement Overview

Summary

El Al's financial performance is strong, demonstrated by substantial revenue growth and impressive profit margins. The income statement is robust, with high EBIT and EBITDA margins. While leverage is significant, the cash flow is solid, indicating effective cash management.

Income Statement

El Al has shown substantial improvement in its income statement over recent years. The TTM revenue growth is evident with an increase from the previous year, reflecting a strong recovery trajectory. Gross profit margin stands at 31.9%, indicating efficient management of direct costs. The net profit margin improved to 16.0%, showcasing impressive profitability. EBIT and EBITDA margins are robust at 22.5% and 29.7% respectively, highlighting strong operational efficiency.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio of 2.07, pointing to significant leverage but improved equity position. Return on equity (ROE) is a strong 79.2%, driven by increased net income. However, the equity ratio is relatively low at 15.3%, indicating dependency on external financing.

Cash Flow

Cash flow analysis reveals a solid performance with an operating cash flow to net income ratio of 2.55, suggesting healthy cash generation relative to profits. Free cash flow growth has been consistent, although slightly declining in the TTM period. The free cash flow to net income ratio is exceptionally strong at 2.04, affirming solid cash flow management.

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	501.60M	326.70M	-84.10M	-247.88M
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: 1327.00
• 50DMA: Negative
• 100DMA: Negative
• 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 1327 is below the 20-day moving average (MA) of 1478.05, below the 50-day MA of 1408.60, and above the 200-day MA of 1182.35, indicating a neutral trend. The MACD of 7.21 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.39 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ELAL	62 Neutral	7.31B	3.45	92.10%	―	12.94%	3.96%
ISRG	55 Neutral	539.51M	8.62	―	―	―	―