Flight Centre (Australia) Buy Hold or Sell Recommendation

FLT -  Australia Stock  

AUD 18.33  0.13  0.71%

Assuming the 90 days trading horizon and your below-average risk tolerance, our recommendation regarding Flight Centre Travel is 'Strong Sell'. Macroaxis provides Flight Centre buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FLT positions. The advice algorithm takes into account all of Flight Centre's available fundamental, technical, and predictive indicators you will find on this site.

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The advice is provided from Flight Centre's buy-and-hold perspective. Please check Flight Centre Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Flight and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Flight Centre Travel.

Execute Flight Centre Buy or Sell Advice

The Flight recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Flight Centre Travel. Macroaxis does not own or have any residual interests in Flight Centre Travel or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Flight Centre's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Flight CentreBuy Flight Centre
Strong Sell

Volatility

Somewhat reliableDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Moves indifferently to market movesDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Flight Centre Travel has a Mean Deviation of 2.08, Semi Deviation of 2.25, Standard Deviation of 2.89, Variance of 8.38, Downside Variance of 6.8 and Semi Variance of 5.06
Our trade advice tool can cross-verify current analyst consensus on Flight Centre Travel and to analyze the company potential to grow in the current economic cycle. To make sure Flight Centre is not overpriced, please confirm all Flight Centre Travel fundamentals, including its current valuation, shares owned by insiders, price to earning, as well as the relationship between the shares outstanding and shares owned by institutions .

Flight Centre Trading Alerts and Improvement Suggestions

Flight Centre Travel has very high historical volatility over the last 90 days
The company reported the revenue of 511.38 M. Net Loss for the year was (917.43 M) with profit before overhead, payroll, taxes, and interest of 300.99 M.
Flight Centre Travel has accumulated about 1.61 B in cash with (517.86 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.09.
Roughly 25.0% of the company shares are held by company insiders

Flight Centre Returns Distribution Density

The distribution of Flight Centre's historical returns is an attempt to chart the future uncertainty of Flight Centre's future price movements. The chart of the probability distribution of Flight Centre stock daily returns describes the distribution of returns around its average expected value. We use Flight Centre Travel price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Flight Centre returns is essential to provide solid investment advice for Flight Centre stock.
Mean Return0.34Value At Risk-3.65
Potential Upside5.09Standard Deviation2.89
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Flight Centre historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Flight Centre Cash Flow Accounts

201620172018201920202021 (projected)
Net Cash Flow from Financing(155.99 M)(186.2 M)(175.07 M)757.2 M681.48 M735.28 M
Net Cash Flow from Investing(161.25 M)(146.44 M)(218.3 M)(48.11 M)(55.33 M)(59.69 M)
Net Cash Flow from Operations295.35 M314.34 M278.88 M5.65 M6.5 M6.67 M

Flight Centre Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Flight Centre or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Flight Centre stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Flight stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.33
β
Beta against DOW-0.09
σ
Overall volatility
3.12
Ir
Information ratio 0.11

Flight Centre Volatility Alert

Flight Centre Travel currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.33. However, we advise investors to further question Flight Centre Travel expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Flight Centre's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Flight Centre's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Flight Centre Fundamentals Vs Peers

Comparing Flight Centre's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Flight Centre's direct or indirect competition across all of the common fundamentals between Flight Centre and the related equities. This way, we can detect undervalued stocks with similar characteristics as Flight Centre or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Flight Centre's fundamental indicators could also be used in its relative valuation, which is a method of valuing Flight Centre by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Flight Centre to competition
FundamentalsFlight CentrePeer Average
Return On Equity(71.33) %(0.31) %
Return On Asset(21.88) %(0.14) %
Profit Margin(179.40) %(1.27) %
Operating Margin(247.42) %(5.51) %
Current Valuation2.75 B16.62 B
Shares Outstanding199.32 M571.82 M
Shares Owned by Insiders24.95 %10.09 %
Shares Owned by Institutions28.42 %39.21 %
Price to Earning5.76 X28.72 X
Price to Book3.13 X9.51 X
Price to Sales7.14 X11.42 X
Revenue511.38 M9.43 B
Gross Profit300.99 M27.38 B
EBITDA(1.2 B)3.9 B
Net Income(917.43 M)570.98 M
Cash and Equivalents1.61 B2.7 B
Cash per Share8.09 X5.01 X
Total Debt1.33 B5.32 B
Debt to Equity1.14 %48.70 %
Current Ratio1.53 X2.16 X
Book Value Per Share5.85 X1.93 K
Cash Flow from Operations(517.86 M)971.22 M
Earnings Per Share(5.43) X3.12 X
Price to Earnings To Growth1.98 X4.89 X
Number of Employees10.62 K18.84 K
Beta2.14-0.15
Market Capitalization3.65 B19.03 B
Total Asset3 B29.47 B
Retained Earnings923 M9.33 B
Working Capital696 M1.48 B
Current Asset2.26 B9.34 B
Current Liabilities1.57 B7.9 B
Z Score1.28.72

About Flight Centre Buy or Sell Advice

When is the right time to buy or sell Flight Centre Travel? Buying financial instruments such as Flight Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Flight Centre investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2018 2019 2020 2021 (projected)
Receivables561.72 M319.6 M287.64 M387.67 M
Inventories1.64 M12.12 M10.91 M11.77 M

Use Investing Ideas to Build Portfolios

In addition to having Flight Centre in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Railroads Theme
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Please check Flight Centre Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Flight Centre Travel information on this page should be used as a complementary analysis to other Flight Centre's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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Please note, there is a significant difference between Flight Centre's value and its price as these two are different measures arrived at by different means. Investors typically determine Flight Centre value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Flight Centre's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.