El Al (ELAL) AI Stock Analysis

• Market Cap: ₪7.98B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.21
• 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): 29.30
• Shares Outstanding: 569,929,800
• 10 Day Avg. Volume: 3,247,392
• 30 Day Avg. Volume: 2,623,762
• PEG Ratio: -0.15
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 3.56
• 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: 70 Outperform
• Price Target: 1,540.00 ▼(-14.21% Downside)
• Action: Upgraded Date: 03/01/26
• Date: Action: Upgraded 03/01/26

The score is driven primarily by solid financial performance (profitability, restored equity, and strong cash generation) and an attractive valuation (low P/E with a meaningful dividend). These positives are tempered by weak technical momentum and some signs of normalization versus 2024 (lower margins and slightly weaker cash flow).

Positive Factors

Cash generation

El Al's solid 2025 operating cash flow (~1.13B) and free cash flow (~0.76B) indicate durable internal funding. Reliable FCF supports ongoing fleet maintenance, targeted capex, dividends or buybacks, and meaningful debt reduction potential, improving resilience through airline cycles.

Balance sheet repair

Restoration to positive equity and a materially improved debt-to-equity ratio de-risks the capital structure. This repair enhances access to funding, reduces insolvency risk, and gives management flexibility to invest or absorb shocks without immediate reliance on dilutive or costly external capital.

Restored profitability

Return to consistent revenue growth and mid-teens operating margins signals restored operating economics post-pandemic. Durable positive margins provide a buffer for fixed costs and support reinvestment programs and shareholder returns, assuming normalizing demand persists.

Negative Factors

High leverage

Despite equity recovery, elevated and rising absolute debt levels leave El Al exposed to revenue shocks and interest-rate moves. Meaningful leverage constrains flexibility for discretionary investment, raises refinancing risk, and amplifies earnings volatility in industry downturns.

Margin and cash flow cooling

The step-down in margins and a year-over-year decline in cash generation indicate earnings power may be normalizing from an elevated 2024 baseline. Reduced margin and FCF growth limit room to absorb cost shocks and slow the pace of debt paydown or reinvestment over coming quarters.

Industry cost & demand sensitivity

El Al operates in a structurally cyclical, cost-sensitive industry: fuel, labor and FX swings materially affect margins. Combined with meaningful leverage and exposure to tourism/passenger demand, these structural dynamics heighten downside risk during macro slowdowns or cost shocks.

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 primarily makes money by selling air transportation and related airline services. Its main revenue stream is passenger ticket sales (fares and associated passenger revenues) across its route network, with revenue influenced by capacity (available seat miles), load factors, route mix, seasonality, and pricing strategy. In addition to base fares, the company earns ancillary revenue tied to the passenger journey (e.g., optional services and fees) where applicable, though specific categories and amounts are not provided here. El Al also generates revenue from cargo and freight services by transporting goods in aircraft belly hold and/or dedicated cargo operations (details on fleet allocation are null if not publicly specified in this response). Additional revenue can come from travel-related services offered around the flight product (such as distribution/channel arrangements and other airline-related services), but any specific product lines beyond air passenger and cargo transportation are null if not explicitly available. Key factors that typically contribute to airline earnings and profitability for El Al include fuel costs and hedging policies (if any), aircraft utilization, labor costs, airport and navigation fees, foreign exchange exposure, and demand conditions; however, specific contracts, hedging positions, or partnership terms are null if not available.

El Al Financial Statement Overview

Summary

Strong post-pandemic profitability and robust operating/free cash flow, with positive equity restored. Offsetting this, margins cooled from 2024 to 2025, cash flow declined year-over-year, and leverage remains meaningful (debt-to-equity ~1.68).

Income Statement

Profitability has improved materially versus 2020–2021 losses, with solid 2025 revenue growth (8.3%) and strong 2025 margins (gross margin ~36%, operating margin ~16.5%, net margin ~11.6%). However, earnings power appears to have cooled from 2024 to 2025 as operating and net margins stepped down (2024 net margin ~15.8% vs. 2025 ~11.6%), suggesting higher costs and/or normalization from an unusually strong 2024.

Balance Sheet

The balance sheet has clearly repaired from negative equity in 2020–2023 to positive equity in 2024–2025, which is a major de-risking. Leverage remains meaningful for an airline: 2025 debt-to-equity is ~1.68 (improved from ~2.80 in 2024), implying continued sensitivity to demand shocks, fuel costs, and interest rates. Total debt also increased in 2025 versus 2024, partially offsetting the benefit of higher equity.

Cash Flow

Cash generation is strong: 2025 operating cash flow (~1.13B) and free cash flow (~0.76B) were both solid and free cash flow covered a meaningful portion of earnings (free cash flow to net income ~0.67). That said, 2025 cash flow declined versus 2024 (free cash flow growth -2.8%), and cash conversion weakened compared with the prior year (2024 free cash flow to net income ~0.86), indicating less favorable working-capital or capex dynamics.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.76B	3.43B	2.50B	1.99B	857.17M
Gross Profit	1.36B	962.60M	396.00M	309.37M	-103.31M
EBITDA	917.72M	1.06B	509.20M	326.70M	-84.10M
Net Income	436.56M	541.40M	112.60M	108.70M	-413.04M
Balance Sheet
Total Assets	5.00B	4.38B	3.32B	3.19B	2.83B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.40B	405.70M	283.42M	90.53M
Total Debt	1.77B	1.53B	1.91B	2.09B	2.19B
Total Liabilities	3.95B	3.85B	3.53B	3.54B	3.38B
Stockholders Equity	1.05B	545.90M	-187.30M	-320.88M	-549.49M
Cash Flow
Free Cash Flow	762.17M	1.24B	324.70M	246.76M	-21.11M
Operating Cash Flow	1.13B	1.45B	455.50M	312.89M	-558.00K
Investing Cash Flow	-980.72M	-1.11B	-174.50M	-59.49M	7.94M
Financing Cash Flow	-183.05M	-198.10M	-179.10M	-56.10M	15.17M

El Al Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1795.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1795 is above the 20-day moving average (MA) of 1478.85, above the 50-day MA of 1633.71, and above the 200-day MA of 1437.05, indicating a bearish trend. The MACD of -72.61 indicates Negative momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 71.51 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
ELAL	70 Outperform	₪7.98B	5.32	69.39%	―	1.56%	-28.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISRG	60 Neutral	₪366.62M	1.19	―	―	70.95%	-60.44%