El Al Israel Airlines Ltd.
El Al Israel Airlines Ltd. Fundamental Analysis
El Al Israel Airlines Ltd. (ELALF) shows strong financial fundamentals with a PE ratio of 6.21, profit margin of 13.91%, and ROE of 63.39%. The company generates $3.6B in annual revenue with strong year-over-year growth of 37.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ELALF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentELALF demonstrates superior asset utilization.
Valuation Score
ExcellentELALF trades at attractive valuation levels.
Growth Score
ModerateELALF shows steady but slowing expansion.
Financial Health Score
ModerateELALF shows balanced financial health with some risks.
Profitability Score
ModerateELALF maintains healthy but balanced margins.
Key Financial Metrics
Is ELALF Expensive or Cheap?
P/E Ratio
ELALF trades at 6.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ELALF's PEG of -0.73 indicates potential undervaluation.
Price to Book
The market values El Al Israel Airlines Ltd. at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.29 times EBITDA. This is generally considered low.
How Well Does ELALF Make Money?
Net Profit Margin
For every $100 in sales, El Al Israel Airlines Ltd. keeps $13.91 as profit after all expenses.
Operating Margin
Core operations generate 18.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $63.39 in profit for every $100 of shareholder equity.
ROA
El Al Israel Airlines Ltd. generates $10.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
El Al Israel Airlines Ltd. generates strong operating cash flow of $1.23B, reflecting robust business health.
Free Cash Flow
El Al Israel Airlines Ltd. generates strong free cash flow of $815.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.44 in free cash annually.
FCF Yield
ELALF converts 25.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.63
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How ELALF Stacks Against Its Sector Peers
| Metric | ELALF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.21 | 26.71 | Better (Cheaper) |
| ROE | 63.39% | 1311.00% | Weak |
| Net Margin | 13.91% | -29317.00% (disorted) | Strong |
| Debt/Equity | 1.30 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.05 | 10.53 | Neutral |
| ROA | 10.05% | -1537638.00% (disorted) | Strong |
ELALF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews El Al Israel Airlines Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-67.08%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
289.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
2.84%
Industry Style: Cyclical, Value, Infrastructure
Growing