El Al (ELAL) AI Stock Analysis

• Market Cap: $8.55B
• Dividend Yield: N/A
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.70
• 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: 549,665,700
• 10 Day Avg. Volume: 2,018,442
• 30 Day Avg. Volume: 1,642,163
• 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: 0.71
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: 6.36
• 1Y Price Target: $1,578.54
• Price Target Upside: 1.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: 1,580.00 ▲(1.61% Upside)

El Al's stock score is primarily driven by its strong technical analysis and attractive valuation. The stock's upward momentum and low P/E ratio suggest potential for growth. However, financial performance is a concern due to high leverage and declining revenue growth, which slightly offsets the positive technical and valuation aspects.

El Al Business Overview & Revenue Model

Company Description

El Al Israel Airlines Ltd. (ELAL) is the national airline of Israel, headquartered in Tel Aviv. The company operates in the aviation sector, providing passenger and cargo air transport services. El Al's core services include scheduled and charter flights, with a comprehensive network connecting Israel to major cities across Europe, North America, the Far East, and Africa. The airline is known for its focus on security and safety, catering to both international and domestic travelers.

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: Positive
• Last Price: 1555.00
• 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 1555 is above the 20-day moving average (MA) of 1413.20, above the 50-day MA of 1345.14, and above the 200-day MA of 1129.62, indicating a bullish trend. The MACD of 38.22 indicates Negative momentum. The RSI at 67.16 is Neutral, neither overbought nor oversold. The STOCH value of 93.27 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	71 Outperform	$8.55B	4.05	92.10%	―	12.94%	3.96%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
KNFM	―	255.74M	2.22		5.81%	―	―
AVIA	―	152.84M	20.84		12.19%	―	―
ISTA	―	1.86B	19.45		12.97%	―	―
GKL	―	134.83M	5.21		―	―	―
ISRG	54 Neutral	548.42M	8.62		―	―	―