ASX:FLT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Flight Centre Travel Group

Market Cap

AU$3.2b

Last Updated

2021/06/20 08:03 UTC

Data Sources

Company Financials +

Executive Summary

Flight Centre Travel Group Limited provides travel retailing services for the leisure, corporate, and wholesale travel sectors in Australia, New Zealand, Europe, the Middle East, Africa, the Americas, Asia, and Internationally. More Details


Snowflake Analysis

Exceptional growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Flight Centre Travel Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLT is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FLT's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

5.6%

FLT

3.8%

AU Hospitality

0.3%

AU Market


1 Year Return

18.4%

FLT

51.7%

AU Hospitality

27.8%

AU Market

Return vs Industry: FLT underperformed the Australian Hospitality industry which returned 51.7% over the past year.

Return vs Market: FLT underperformed the Australian Market which returned 27.8% over the past year.


Shareholder returns

FLTIndustryMarket
7 Day5.6%3.8%0.3%
30 Day5.8%5.5%4.6%
90 Day-18.3%14.1%9.0%
1 Year18.4%18.4%53.4%51.7%32.0%27.8%
3 Year-68.7%-74.2%12.9%1.1%34.0%18.0%
5 Year-32.4%-48.1%74.2%44.9%75.2%42.6%

Long-Term Price Volatility Vs. Market

How volatile is Flight Centre Travel Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Flight Centre Travel Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLT (A$16.11) is trading below our estimate of fair value (A$127.32)

Significantly Below Fair Value: FLT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLT is unprofitable, so we can't compare its PE Ratio to the Australian Hospitality industry average.

PE vs Market: FLT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FLT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FLT's PB Ratio (2.8x) is in line with the AU Hospitality industry average.


Future Growth

How is Flight Centre Travel Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

70.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: FLT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FLT's is expected to become profitable in the next 3 years.

Revenue vs Market: FLT's revenue (42.9% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: FLT's revenue (42.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLT's Return on Equity is forecast to be high in 3 years time (26.4%)


Past Performance

How has Flight Centre Travel Group performed over the past 5 years?

-51.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLT is currently unprofitable.

Growing Profit Margin: FLT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLT is unprofitable, and losses have increased over the past 5 years at a rate of 51.2% per year.

Accelerating Growth: Unable to compare FLT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FLT is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-27.6%).


Return on Equity

High ROE: FLT has a negative Return on Equity (-78.76%), as it is currently unprofitable.


Financial Health

How is Flight Centre Travel Group's financial position?


Financial Position Analysis

Short Term Liabilities: FLT's short term assets (A$2.1B) exceed its short term liabilities (A$1.4B).

Long Term Liabilities: FLT's short term assets (A$2.1B) exceed its long term liabilities (A$988.8M).


Debt to Equity History and Analysis

Debt Level: FLT's debt to equity ratio (78.4%) is considered high.

Reducing Debt: FLT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: FLT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if FLT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Flight Centre Travel Group current dividend yield, its reliability and sustainability?

1.37%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FLT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FLT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FLT is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FLT's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Skroo Turner (71 yo)

no data

Tenure

AU$498,442

Compensation

Mr. Graham F. Turner, also known as Skroo, BVSc, founded Flight Centre Travel Group Limited and serves as its Chief Executive Officer and Global Managing Director. Mr. Turner is the Founder of Australian O...


CEO Compensation Analysis

Compensation vs Market: Skroo's total compensation ($USD373.09K) is below average for companies of similar size in the Australian market ($USD1.73M).

Compensation vs Earnings: Skroo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FLT's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: FLT's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Flight Centre Travel Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flight Centre Travel Group Limited
  • Ticker: FLT
  • Exchange: ASX
  • Founded: 1987
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: AU$3.211b
  • Shares outstanding: 199.32m
  • Website: https://www.fctgl.com

Number of Employees


Location

  • Flight Centre Travel Group Limited
  • 275 Grey Street
  • Southpoint
  • South Brisbane
  • Queensland
  • 4101
  • Australia

Listings


Biography

Flight Centre Travel Group Limited provides travel retailing services for the leisure, corporate, and wholesale travel sectors in Australia, New Zealand, Europe, the Middle East, Africa, the Americas, Asia...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 08:03
End of Day Share Price2021/06/18 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.