El Al (ELAL) AI Stock Analysis

• Market Cap: ₪9.96B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.18
• 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: 567,081,600
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 1,898.00 ▲(5.74% Upside)

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

Core scheduled air travel business

As Israel's established scheduled carrier, El Al benefits from a durable route network, brand recognition and steady demand for core passenger services. This business model creates recurring cash flow opportunities from fares, ancillary services and cargo across domestic and international routes.

Improving leverage profile

The marked reduction in debt-to-equity indicates meaningful deleveraging, improving financial flexibility and lowering interest burden. Sustained lower leverage increases resilience to demand volatility, supports refinancing capacity and frees cash for strategic investments over months to years.

Healthy operating margins

Robust gross, EBIT and EBITDA margins relative to the industry point to operational efficiency and pricing power. These margins enhance the company's ability to absorb fuel and cost shocks, sustain profitability, and reinvest in fleet or routes, supporting medium-term competitive positioning.

Negative Factors

Negative free cash flow growth

A sustained decline in free cash flow growth reduces the firm's ability to self-fund capex, service debt or build reserves. Over several quarters this can force external financing, constrain strategic spending, and heighten liquidity risk in a capital-intensive, cyclical airline industry.

Low equity ratio

A low equity ratio signals heavy reliance on debt financing, leaving limited capital buffer against shocks. In an industry exposed to demand swings and rate moves, this structural leverage increases solvency risk and can amplify the impact of downturns on long-term operations and financing costs.

Declining EPS growth

A steep decline in EPS growth suggests pressure on per-share profitability, potentially from dilution, cost pressures or uneven revenue mix. If persistent, falling EPS constrains retained earnings, weakens reinvestment capacity, and can signal structural earnings volatility to stakeholders.

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's financial performance shows a mix of strengths and challenges. The income statement reflects strong profitability and growth, albeit with some margin pressures. The balance sheet indicates improved leverage and profitability, but the low equity ratio remains a concern. Cash flow metrics highlight potential cash management issues, with declining free cash flow growth. Overall, El Al is on a positive trajectory, but must address leverage and cash flow challenges to sustain long-term growth.

Income Statement

El Al has shown a positive trajectory in its income statement metrics. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 26.63% and a net profit margin of 13.81%, both of which are solid for the airline industry. The revenue growth rate of 2.07% suggests steady growth, although it has slowed compared to previous periods. EBIT and EBITDA margins are strong at 19.93% and 27.89%, respectively, indicating efficient operations. However, the slight decline in margins compared to the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet shows improvement, with a debt-to-equity ratio decreasing from 2.80 to 1.75, indicating better leverage management. Return on equity is high at 77.21%, reflecting strong profitability relative to equity. However, the equity ratio is low, with stockholders' equity comprising only 20.88% of total assets, suggesting a reliance on debt financing. The improvement in equity position is notable, but the company still faces risks associated with high leverage.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -22.03% in the TTM period. The operating cash flow to net income ratio is 0.57, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.73, suggesting that while the company is generating cash, it is not fully translating into free cash flow. The decline in free cash flow growth is a concern, highlighting potential cash management issues.

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: 1795.00
• 50DMA: Positive
• 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 Positive. The current price of 1795 is above the 20-day moving average (MA) of 1745.31, above the 50-day MA of 1598.00, and above the 200-day MA of 1369.75, indicating a bullish trend. The MACD of 49.58 indicates Positive momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 68.24 is Neutral, 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	₪9.96B	5.15	69.39%	―	1.56%	-28.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISRG	60 Neutral	₪454.04M	12.94	―	―	70.95%	-60.44%