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Highlights
- FLT’s revenue has grown sharply despite high interest rates.
- Shares trade well below historical valuation levels.
- Sector familiarity makes it easier to understand the business.
Flight Centre Travel Group (ASX:FLT), a well-known name in global travel, has seen its share price decline by 27.2% since the start of 2025. Despite this, the company’s fundamentals and the broader consumer discretionary sector dynamics suggest it may deserve renewed attention.
Founded in 1982, Flight Centre operates in over 80 countries, offering services across retail and corporate travel. What sets it apart is its focus on personal customer service — a competitive edge in a landscape crowded with digital-only platforms. With tailored travel planning and access to exclusive deals, FLT continues to nurture customer loyalty and repeat business.
From a broader perspective, the ASX200 Consumer Discretionary Index (ASX:XDJ) has delivered an average return of 10.78% annually over the past five years, outperforming the broader ASX200 index (see: ASX200) which returned 7.22% annually. This suggests a compelling case for consumer discretionary companies, especially in certain economic conditions.
Consumer discretionary stocks often perform best during periods of low interest rates. However, even in a high interest rate environment, FLT has managed to grow its revenue by a striking 89.8% annually over the last three years. This speaks volumes about its operational resilience and adaptability.
When it comes to income generation, FLT currently offers a dividend yield of 3.3%. While its 5-year average yield stands at 0.5%, the latest figure hints at a more generous return potential moving forward — though, as always, dividend reliability can vary depending on broader economic cycles.
Investors often find comfort in familiar brands and simple business models. Flight Centre’s straightforward revenue streams — booking travel, managing corporate itineraries, and offering travel-related services — make it easier for the average person to understand how it generates profits, unlike more complex or opaque sectors.
From a valuation lens, FLT shares are currently trading at a price-to-sales (P/S) ratio of 0.99x, well below the company’s 5-year average of 3.42x. This implies either the stock has been oversold or sales have increased significantly — or a combination of both. Given the recent revenue growth, the current valuation may point to an underappreciated opportunity.
Flight Centre’s strong revenue growth, improving dividend profile, and simplified business model — all wrapped in a lower-than-average valuation — put the company back in focus for those keeping an eye on resilient names within the ASX200 discretionary space.
