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El Al Israel Airlines Ltd (IL:ELAL)
TASE:ELAL
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El Al (ELAL) AI Stock Analysis

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IL:ELAL

El Al

(TASE:ELAL)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
1,784.00
▲(6.06% Upside)
Action:Downgraded
Date:08/08/26
The score is driven primarily by improved profitability and positive cash generation following the turnaround, tempered by still-elevated leverage and a recent drop in free cash flow/cash conversion. Technically, the stock is in a strong uptrend above key moving averages, but overbought signals raise near-term pullback risk. Valuation is a modest positive with a reasonable P/E and a solid dividend yield.
Positive Factors
Sustained Profitability Turnaround
The recovery from losses in 2021 to solid positive operating and net margins indicates a meaningful turnaround. If maintained, this stronger earnings base can improve resilience and support reinvestment over the next several quarters.
Negative Factors
Elevated Leverage
Debt exceeding equity leaves El Al more exposed to demand shocks, fuel and foreign-exchange volatility, and refinancing conditions. These pressures can constrain flexibility and amplify earnings swings in a cyclical airline business.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability Turnaround
The recovery from losses in 2021 to solid positive operating and net margins indicates a meaningful turnaround. If maintained, this stronger earnings base can improve resilience and support reinvestment over the next several quarters.
Read all positive factors

El Al (ELAL) vs. iShares MSCI Israel ETF (EIS)

El Al Business Overview & Revenue Model

Company Description
El Al Israel Airlines Ltd., established in 1948 and headquartered in Lod, Israel, operates as a multifaceted aviation and travel enterprise. The company's core business involves transporting passengers and cargo, connecting approximately 40 direct...
How the Company Makes Money
El Al primarily makes money by selling air transportation and related services. Its main revenue stream is passenger revenue: selling airline tickets across cabin classes (e.g., economy and premium cabins) on its scheduled routes, with pricing inf...

El Al Financial Statement Overview

Summary
Financials show a clear turnaround with solid TTM profitability (about 11.8% EBIT and 7.4% net margin) and positive operating/free cash flow. Offsetting this, leverage remains meaningful (debt-to-equity around 1.18x) and recent trends point to normalization: slightly lower TTM revenue vs FY2025 and a sharp step-down in free cash flow with weaker cash conversion (~60% of net income).
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.48B3.76B3.43B2.50B1.99B857.17M
Gross Profit1.03B1.36B962.60M396.00M309.37M-103.31M
EBITDA695.19M917.72M1.06B509.20M326.70M-84.10M
Net Income305.14M436.56M541.40M112.60M108.70M-413.04M
Balance Sheet
Total Assets5.57B5.00B4.38B3.32B3.19B2.83B
Cash, Cash Equivalents and Short-Term Investments2.10B1.99B1.40B405.70M283.42M90.53M
Total Debt1.16B1.28B1.53B1.91B2.09B2.19B
Total Liabilities4.45B3.95B3.85B3.53B3.54B3.38B
Stockholders Equity1.10B1.05B545.90M-187.30M-320.88M-549.49M
Cash Flow
Free Cash Flow312.99M762.17M1.24B324.70M246.76M-21.11M
Operating Cash Flow940.29M1.13B1.45B455.50M312.89M-558.00K
Investing Cash Flow-719.93M-980.72M-1.11B-174.50M-59.49M7.94M
Financing Cash Flow-146.54M-183.05M-198.10M-179.10M-56.10M15.17M

El Al Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₪10.14B10.5369.39%3.33%-11.24%-54.06%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
₪418.21M-94.322.30%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:ELAL
El Al
1,714.00
311.70
22.23%
IL:SHGR
Shagrir
1,474.00
-647.47
-30.52%
IL:KNFM
Knafaim
1,704.00
192.43
12.73%
IL:GKL
Global Knafaim
96.30
10.80
12.63%
IL:OVRS
Overseas
594.30
148.11
33.20%
IL:ISRG
Israir Group Ltd
158.90
-44.50
-21.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2026