El Al (ELAL) AI Stock Analysis

• Market Cap: $9.31B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.19
• Revenue Growth: 1.56%
• EPS Growth: -28.04%
• Country: IL
• Employees: 3,013
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 122.40
• Shares Outstanding: 554,093,750
• 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: 0.65
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 6.41
• Enterprise Value/Ebitda: 6.44
• 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: 66 Neutral
• Price Target: 1,560.00 ▼(-3.76% Downside)

El Al's overall stock score reflects a combination of strong valuation and solid financial performance, tempered by technical indicators suggesting caution. The low P/E ratio indicates potential undervaluation, while financial metrics show profitability with some leverage and cash flow concerns. Technical analysis presents a mixed picture, with positive price trends but bearish momentum signals.

Positive Factors

Leverage Management

Improved leverage management enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Profitability

High return on equity indicates strong profitability, suggesting efficient use of equity capital and potential for reinvestment in business expansion.

Operational Efficiency

Strong EBIT and EBITDA margins reflect efficient operations, enabling the company to maintain profitability even amidst industry challenges.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth indicates potential cash management issues, which could limit the company's ability to fund operations and growth initiatives.

Equity Ratio Concerns

A low equity ratio suggests reliance on debt financing, increasing financial risk and potentially impacting long-term sustainability.

Margin Pressures

Declining margins may indicate rising costs or competitive pressures, which could erode profitability if not managed effectively.

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 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	3.48B	3.43B	2.50B	1.99B	857.17M	623.08M
Gross Profit	942.40M	962.60M	396.00M	309.37M	-103.31M	-177.33M
EBITDA	937.80M	1.06B	509.20M	326.70M	-84.10M	-224.83M
Net Income	483.60M	541.40M	112.60M	108.70M	-413.04M	-531.04M
Balance Sheet
Total Assets	4.81B	4.38B	3.32B	3.19B	2.83B	3.01B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.40B	405.70M	283.42M	90.53M	80.23M
Total Debt	1.30B	1.53B	1.91B	2.09B	2.19B	2.22B
Total Liabilities	3.81B	3.85B	3.53B	3.54B	3.38B	3.26B
Stockholders Equity	1.00B	545.90M	-187.30M	-320.88M	-549.49M	-256.89M
Cash Flow
Free Cash Flow	784.10M	1.24B	324.70M	246.76M	-21.11M	-257.67M
Operating Cash Flow	1.18B	1.45B	455.50M	312.89M	-558.00K	-138.82M
Investing Cash Flow	-1.04B	-1.11B	-174.50M	-59.49M	7.94M	-96.99M
Financing Cash Flow	-216.40M	-198.10M	-179.10M	-56.10M	15.17M	73.20M

El Al Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1621.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ELAL, the sentiment is Positive. The current price of 1621 is above the 20-day moving average (MA) of 1506.20, above the 50-day MA of 1450.18, and above the 200-day MA of 1322.72, indicating a bullish trend. The MACD of 69.14 indicates Negative momentum. The RSI at 69.39 is Neutral, neither overbought nor oversold. The STOCH value of 94.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ELAL.

El Al Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELAL	66 Neutral	$9.31B	4.76	69.39%	―	1.56%	-28.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISRG	60 Neutral	459.07M	12.86	―	―	70.95%	-60.44%

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.