El Al (ELAL) AI Stock Analysis

• Market Cap: $7.46B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 3.6
• 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): 41.80
• Shares Outstanding: 550,667,300
• 10 Day Avg. Volume: 3,247,392
• 30 Day Avg. Volume: 2,623,762
• 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: 0.81
• 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

• Rating: 59 Neutral
• Price Target: 1,408.00 ▲(1.37% Upside)

El Al's stock score is primarily influenced by its strong valuation, suggesting it may be undervalued. However, financial performance concerns, including high leverage and declining revenue growth, weigh heavily on the score. Technical analysis indicates bearish momentum, further impacting the overall score.

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'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: Positive
• Last Price: 1389.00
• 50DMA: Negative
• 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 1389 is above the 20-day moving average (MA) of 1375.40, below the 50-day MA of 1408.56, and above the 200-day MA of 1223.62, indicating a neutral trend. The MACD of -21.55 indicates Negative momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 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
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ELAL	―	$7.46B	3.60	92.10%	―	12.94%	3.96%
ISRG	―	471.91M	-131.10	―	―	62.14%	-105.72%

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.