Five Below (FIVE) AI Stock Analysis

• Market Cap: $3.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.09
• Revenue Growth: 8.91%
• EPS Growth: -15.31%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 4.59
• Shares Outstanding: 55,049,360
• 10 Day Avg. Volume: 3,260,579
• 30 Day Avg. Volume: 2,583,053
• PEG Ratio: 947.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.10
• Price to Cash Flow (P/CF): -34.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $93.47
• Price Target Upside: 67.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

Five Below's overall stock score reflects strong revenue growth and a robust financial position, tempered by challenges in operating margins and sales comparability. The stock's technical indicators suggest a cautious outlook, while valuation remains fair. Earnings call insights highlight strategic growth amid margin pressures.

Positive Factors

Earnings

Five Below reported better-than-expected fourth-quarter results, as comps landed toward the high end of its prior guide.

Expansion

Five plans to open 150 new stores (+8.5% growth) in F25.

Negative Factors

Margin Pressure

The tariff landscape presents a significant margin headwind which will build through '25e and into '26e, complicating FIVE's value strategy.

Tariffs

Tariff pressure will result in a decline in earnings in F25 and flat earnings in F26.

Five Below Business Overview & Revenue Model

Company Description

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options. It provides assortment of sports balls, team sports merchandise, and fitness accessories comprising hand weights, jump ropes, and gym balls; various games, such as board games, puzzles, collectibles, and toys, including remote control; and summer season sports, which includes pool, beach, and outdoor toys, as well as games and accessories. In addition, the company offers accessories for cell phones, tablets, audio, and computers, as well as cases, chargers, headphones, and other related items; and media products including books, video games, and DVDs. It also provides assortment of craft activity kits, and arts and crafts supplies, such as crayons, markers, and stickers; and school products comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and locker accessories. Further, the company offers party products, which includes party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food products, as well as sells chilled drinks through coolers; and provides seasonally specific items used to celebrate and decorate for events. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes Money

Five Below generates revenue primarily through the direct sale of merchandise in its physical retail stores across the United States. The company's revenue model is centered around its unique value proposition of offering high-quality, trend-forward products at affordable, fixed price points. This pricing strategy encourages impulse buying and attracts a wide customer base. Key revenue streams include sales from various product categories, such as leisure, fashion, home, and seasonal items. Five Below's growth strategy involves expanding its store footprint across the country, increasing brand awareness, and enhancing product offerings. Additionally, the company leverages its supply chain efficiencies and strong relationships with vendors to maintain low costs and competitive pricing, which are crucial factors contributing to its profitability.

Five Below Financial Statement Overview

Summary

Five Below shows strong revenue growth and an increase in equity, reflecting financial health. However, operating efficiency volatility and cash flow management issues suggest potential risks.

Income Statement

Five Below has demonstrated strong revenue growth over recent years, with a notable increase in total revenue from $1.96 billion in 2021 to $3.56 billion in 2024. The company also maintains healthy gross profit and net profit margins, suggesting operational efficiency and profitability. However, fluctuations in EBIT and EBITDA margins indicate potential volatility in operating efficiency.

Balance Sheet

The company's balance sheet is robust, with a significant increase in stockholders' equity from $0.76 billion in 2020 to $577.85 billion in 2025, indicating strong investor confidence. The absence of total debt in 2025 reflects a conservative financial strategy, reducing leverage-related risks. Equity ratio improvement enhances financial stability, though historical debt-to-equity ratios suggest past leverage.

Cash Flow

Operating cash flows have been positive, supporting the company's ability to fund operations internally. However, inconsistent free cash flow growth and variations in free cash flow to net income ratios highlight challenges in capital expenditure management and cash generation efficiency. The recent lack of reported operating and free cash flow data requires attention.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.88B	3.56B	3.08B	2.85B	1.96B
	Gross Profit
1.35B	1.27B	1.10B	1.03B	652.33M
	EBIT
323.82M	385.57M	345.04M	379.88M	154.80M
	EBITDA
517.38M	516.32M	450.66M	464.71M	224.15M
	Net Income Common Stockholders
253.61M	301.11M	261.53M	278.81M	123.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
528.79M	460.09M	399.17M	342.11M	409.71M
	Total Assets
4.34B	3.87B	3.32B	2.88B	2.31B
	Total Debt
1.98B	1.74B	1.50B	1.30B	1.11B
	Net Debt
1.65B	1.56B	1.16B	1.23B	841.55M
	Total Liabilities
2.53B	2.29B	1.96B	1.76B	1.43B
	Stockholders Equity
577.85B	1.58B	1.36B	1.12B	881.89M
Cash Flow		Free Cash Flow
106.65M	164.57M	62.97M	39.74M	165.78M
	Operating Cash Flow
430.65M	499.62M	314.93M	327.91M	365.97M
	Investing Cash Flow
-232.94M	-556.34M	-3.94M	-465.60M	-286.89M
	Financing Cash Flow
-45.74M	-95.86M	-43.63M	-66.13M	-12.78M

Five Below Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVE, the sentiment is Negative. The current price of 55.75 is below the 20-day moving average (MA) of 72.34, below the 50-day MA of 82.31, and below the 200-day MA of 89.24, indicating a bearish trend. The MACD of -2.77 indicates Negative momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 32.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVE.

Five Below Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBW	75 Outperform	$486.52M	9.53	38.54%	2.27%	2.76%	6.81%
SBH	70 Neutral	$875.79M	5.09	29.39%	―	0.57%	6.28%
ASO	69 Neutral	$2.52B	6.56	21.14%	1.22%	-3.67%	-14.66%
FIVE	67 Neutral	$3.13B	13.25	14.95%	―	8.91%	-15.31%
ETSY	63 Neutral	$4.76B	18.40	-39.97%	―	2.18%	5.77%
Sector *	59 Neutral	$10.97B	9.83	-1.56%	4.06%	1.31%	-16.49%
AAP	45 Neutral	$2.09B	59.62	-23.45%	2.86%	-9.34%	-852.37%

Five Below Corporate Events

Five Below Reports Holiday Sales Growth Amid Challenges

Five Below announced an 8.7% increase in net sales during the holiday season, totaling $1.19 billion. Despite a 3.2% decrease in comparable sales, the company expects to meet its guidance for the fourth quarter, reflecting strong customer engagement and strategic investments in product and store experience.