Flight Centre (ASX:FLT): Is It Flying Under the Radar in 2025?

June 19, 2025 05:40 PM AEST | By Team Kalkine Media

Flight Centre (ASX:FLT): Is It Flying Under the Radar in 2025? — Image source: Shutterstock

Strong Growth Indicators

Flight Centre’s financials reflect a compelling growth narrative. In its most recent financial year, FLT posted an annual revenue of $2,708 million, supported by a compound annual growth rate (CAGR) of 89.8% over the past three years. This surge points to strong momentum, particularly in the post-pandemic recovery era.

Gross margin stands at 42.4%, suggesting the core travel services remain solidly profitable before accounting for operational overheads. After several challenging years, FLT returned to profitability with a reported net profit of $140 million in FY24—an impressive turnaround from a loss of $433 million three years ago.

Financial Position and Stability

Examining Flight Centre’s financial health reveals a net debt of $283 million. While this indicates some leverage, the company’s debt/equity ratio of 84.1% shows that it has more equity than debt—a relatively balanced capital structure.

Another notable metric is the return on equity (ROE), which came in at 11.9%. This suggests efficient capital use, translating to steady value creation for shareholders.

Valuation Context

Flight Centre shares currently trade at a price-to-sales (P/S) ratio of 1.00x, well below their five-year average of 3.42x. This valuation gap could imply that the market hasn’t fully priced in the company’s revenue recovery. Whether due to increased sales, a drop in share price, or both, this discrepancy offers potential interest for those tracking ASX200 index.

While no single metric paints the full picture, Flight Centre’s performance and valuation suggest it is a company evolving with the market while holding onto its traditional strengths.

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