FLT share price in focus
Founded in Sydney in 1982, Flight Centre is a global travel agency with operations across more than 80 countries, operating under various brand names.
The company serves both the retail and corporate sectors, offering a range of services including tour operations, travel experiences, and hotel management.
Flight Centre differentiates itself by providing a personal touch that many online travel agencies can’t match. Their consultants manage all aspects of travel planning and are often able to secure exclusive deals for customers, fostering loyalty and repeat business.
MQG shares
Macquarie Group is a multinational investment bank and financial services company that was founded in 1969.
Macquarie’s operations are a bit different to the rest of the big Australian banks. While it does have a normal banking division, it is also an asset management company with investment operations spanning infrastructure, commodities, agriculture, real estate, and global equity markets.
Macquarie prides itself on delivering consistent value to shareholders, with a more than 55-year record of unbroken profitability.
FLT & MQG share price valuation
As a growth company, some of the trends we might investigate from FLT include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, FLT has grown revenue at a rate of 89.8% per year to reach $2,708m in FY24. Over the same stretch of time, net profit has fallen from $433m to $140m. As for ROE, FLT last reported a ROE of 11.9%.
Since MQG is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In FY24, Macquarie Group Ltd reported a debt/equity ratio of 258.5%, meaning the company is leveraged (it has more debt than equity). Higher debt levels come with increased risk so it’s important that a leveraged company has stable returns and the capacity to pay interest on its debts.
As for dividends, since 2020 MQG has paid an average dividend yield of 3.2% per year.
Finally, in FY24, MQG reported an ROE of 10.4%. For a mature business you’re generally looking for an ROE of more than 10%, so MQG clears this hurdle.
Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
