El Al Israel Airlines Ltd.: Company Profile and SWOT Analysis by WMIntelligence

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									El Al Israel Airlines Ltd.

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El Al Israel Airlines Ltd.                                                     Financial Snapshot

                                                                               Operating Performance
Fast Facts
                                                                               The company reported revenue of US$1,972.24
Headquarters Address                      P.O Box 41, Lod, 70100,Israel
                                                                               million during the fiscal year 2010 (2010). The
                                                                               company's revenue grew at a CAGR of 4.32% during
Telephone                                 + 972 3 9716202
                                                                               2006–2010, with an annual growth of 19.11% over
                                                                               2009. In 2010, the company recorded an operating
Fax                                       + 972 3 9717334                      margin of 3.89%, as against -3.62% in 2009.

Website                                   www.elal.co.ilELALEnglishStatesUSA
                                                                               Revenue and Margins
Ticker Symbol, Stock Exchange             ELAL, Tel Aviv Stock Exchange

Number of Employees                       3,814

Fiscal Year End                           December

Revenue (in US$ million)                  1,972.24




SWOT Analysis

Strengths                                 Weaknesses                           Return on Equity

Leading market position                   Limited financial leverage           The company recorded a return on equity (ROE) of
                                                                               23.05% for 2010, as compared to its peers, Hawaiian
                                                                               Holdings Inc (Ticker: HA), Knafaim Holdings Limited
Strong liquidity position                                                      (Ticker: KNFM) and Air Arabia PJSC (Ticker:
                                                                               AIRARABIA), which recorded ROEs of 39.68%,
Strong operating performance                                                   28.81% and 5.69% respectively. The company
                                                                               reported an operating margin of 3.89% in 2010.
Opportunities                             Threats
                                                                               Return on Equity
Business expansion plans                  Entry of low-cost carriers

Growth in global Airline traffic          Rising fuel prices

Positive outlook for travel and tourism
                                          Stringent regulations
industry in Israel

                                          Unforeseen circumstances




                                                                               Liquidity Position

                                                                               The company reported a current ratio of 0.57 in 2010,
                                                                               as compared to its peers, Hawaiian Holdings Inc,
                                                                               Knafaim Holdings Limited and Air Arabia PJSC, which
                                                                               recorded current ratios of 1.11, 0.65 and 3.37
                                                                               respectively. As of December 2010, the company
                                                                               recorded cash and short-term investments of worth
                                                                               US$174.57 million, against zero current debt. The
                                                                               company reported a debt to equity ratio of 2.86 in
                                                                               2010 as compared to its peers, Hawaiian Holdings
                                                                               Inc, Knafaim Holdings Limited and Air Arabia PJSC,
                                                                               which recorded debt to equity ratios of 0.68, 10.38
                                                                               and 0.04 respectively.




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El Al Israel Airlines Ltd. - SWOT Profile                                                                             Page 1
El Al Israel Airlines Ltd.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Solvency ..........................................................................................................................................................13
      2.2.5       Valuation ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency .........................................................................................................................
								
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