Five Below (FIVE) AI Stock Analysis

• Market Cap: $12.33B
• Dividend Yield: N/A
• Average Volume (3M): 888.41K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 1.64
• Revenue Growth: 15.78%
• EPS Growth: 14.99%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Discount Stores
• EPS (TTM): 0.68
• Shares Outstanding: 55,157,085
• 10 Day Avg. Volume: 801,760
• 30 Day Avg. Volume: 888,414
• PEG Ratio: -1.35
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 48.41
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 9.45
• Enterprise Value/Ebitda: 23.58
• 1Y Price Target: $221.63
• Price Target Upside: -0.85% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 6.97
• Revenue Forecast (FY): $5.20B

• Rating: 73 Outperform
• Price Target: $251.00 ▲(12.29% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is driven by strong earnings momentum and upbeat guidance, supported by solid financial performance and a strong uptrend in the chart. These positives are tempered by a premium valuation and signs of stretched technical momentum, plus some cash-flow and leverage watch items.

Positive Factors

Sustained same-store and top-line growth

Consistent double-digit comparable sales and 23% net sales growth reflect durable product-market fit with Five Below’s target demographic. Broad-based traffic gains and merchandising agility indicate persistent demand, supporting multi-quarter revenue visibility and repeat-purchase economics.

Repeatable store expansion

A disciplined 9% store growth cadence and ~1,900-store base expand reach and economies of scale. New stores deepen market penetration in underpenetrated regions, enhance purchasing leverage, and create a durable retail footprint that supports sustained sales growth over multiple quarters.

Healthy margins and disciplined expense management

Stable net margins and healthy operating margins, combined with demonstrated expense discipline (62% EPS growth noted), point to sustainable profitability. That operating leverage supports cash generation potential and resilience to moderate cost pressures over the medium term.

Negative Factors

Declining free cash flow

A declining FCF trend reduces internal funding for new stores, inventory investment, or debt reduction. Even with positive operating cash flow, weaker free cash flow can force greater external financing or slower reinvestment, limiting financial flexibility over the coming quarters.

Rising leverage

A debt-to-equity near 1.0 and rising leverage constrain balance sheet flexibility and increase interest expense sensitivity. If economic conditions deteriorate, higher leverage could amplify downside risk, limiting Five Below’s ability to invest opportunistically or maintain aggressive store expansion.

Margin pressure from shrink and tariffs

Ongoing shrink and unmitigated tariff costs create persistent margin pressure, eroding the benefit of operating leverage. These structural cost headwinds can compress gross margins and require sustained pricing, sourcing, or product-mix actions to preserve profitability over multiple quarters.

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 sale of its wide range of products, all priced at $5 or below. The company's revenue model is based on high-volume sales of affordable merchandise, which allows it to attract cost-conscious consumers. Key revenue streams include in-store sales, e-commerce transactions, and seasonal promotions that drive traffic to both physical and online stores. Additionally, Five Below benefits from strategic partnerships with various suppliers and brands to offer exclusive merchandise that resonates with its target audience. The company also leverages its ability to quickly adapt to changing trends, which helps maintain customer interest and drive repeat business.

Five Below Financial Statement Overview

Summary

Financials are solid overall: income statement strength (78) shows steady growth and healthy margins, and the balance sheet (72) is stable with improving ROE, but cash flow is weaker (65) due to declining free cash flow and rising leverage that warrants monitoring.

Income Statement

Five Below has demonstrated consistent revenue growth with a TTM growth rate of 4.6%, indicating a positive trajectory. The gross profit margin has slightly decreased over the years, but the net profit margin has remained stable around 7%. The EBIT and EBITDA margins are healthy, reflecting efficient cost management. Overall, the income statement shows strong growth potential and profitability.

Balance Sheet

The company maintains a balanced debt-to-equity ratio of approximately 1.03 in the TTM, indicating a moderate level of leverage. Return on equity has improved to 16.4%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid financial foundation. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Operating cash flow has shown growth, but free cash flow has decreased by 6.43% in the TTM, which may indicate challenges in cash generation. The operating cash flow to net income ratio is above 0.5, suggesting reasonable cash conversion efficiency. However, the decline in free cash flow growth is a concern that needs addressing.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	4.43B	3.88B	3.56B	3.08B	2.85B	1.96B
Gross Profit	1.48B	1.35B	1.27B	1.10B	1.03B	652.33M
EBITDA	593.28M	491.26M	516.32M	450.66M	464.71M	224.15M
Net Income	307.87M	253.61M	301.11M	261.53M	278.81M	123.36M
Balance Sheet
Total Assets	4.79B	4.34B	3.87B	3.32B	2.88B	2.31B
Cash, Cash Equivalents and Short-Term Investments	524.50M	528.79M	460.09M	399.17M	342.11M	409.71M
Total Debt	2.01B	1.98B	1.74B	1.50B	1.30B	1.11B
Total Liabilities	2.84B	2.53B	2.29B	1.96B	1.76B	1.43B
Stockholders Equity	1.95B	1.81B	1.58B	1.36B	1.12B	881.89M
Cash Flow
Free Cash Flow	322.97M	106.65M	164.57M	62.97M	39.74M	165.78M
Operating Cash Flow	509.07M	430.65M	499.62M	314.93M	327.91M	365.97M
Investing Cash Flow	-323.93M	-232.94M	-556.34M	-3.94M	-465.60M	-286.89M
Financing Cash Flow	-3.85M	-45.74M	-95.86M	-43.63M	-66.13M	-12.78M

Five Below Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 223.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVE, the sentiment is Positive. The current price of 223.53 is above the 20-day moving average (MA) of 209.03, above the 50-day MA of 198.41, and above the 200-day MA of 156.37, indicating a bullish trend. The MACD of 8.24 indicates Negative momentum. The RSI at 70.90 is Negative, neither overbought nor oversold. The STOCH value of 85.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIVE.

Five Below Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIVE	73 Outperform	$12.33B	40.14	17.27%	―	15.78%	14.99%
MNSO	72 Outperform	$5.70B	18.59	20.83%	3.10%	13.37%	-19.37%
RVLV	67 Neutral	$1.78B	29.39	12.98%	―	9.24%	35.68%
GME	62 Neutral	$10.77B	29.23	8.35%	―	-12.13%	426.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	53 Neutral	$4.66B	7.00	―	4.16%	-1.04%	-20.88%
TDUP	51 Neutral	$610.69M	-15.68	-35.37%	―	-4.90%	50.77%

Five Below Corporate Events

Five Below Announces Executive Departure and Severance Agreement

On February 3, 2026, George S. Hill’s employment with Five Below ended, and on February 8, 2026, the parties entered into a Separation Agreement and Release confirming his entitlement to severance benefits under the company’s Executive Severance Plan. The agreement grants Hill a lump-sum cash payment of $700,000, equivalent to 12 months of base salary, plus $20,000 to offset group healthcare continuation coverage.

Under the Separation Agreement, Hill will remain available for 90 days after his departure to advise senior management on the transition of his duties, in exchange for a fiscal 2025 short-term incentive payout based on actual performance. He will also receive additional cash payments totaling $32,048 for healthcare and outplacement costs, continue vesting in 3,269 restricted stock units scheduled to vest in March 2026, and is bound by customary cooperation, non-disparagement, and restrictive covenants.

The most recent analyst rating on (FIVE) stock is a Hold with a $206.00 price target. To see the full list of analyst forecasts on Five Below stock, see the FIVE Stock Forecast page.

Five Below lifts 2025 outlook after strong holiday sales

On January 12, 2026, Five Below reported strong holiday trading, with net sales for the nine-week period from November 2, 2025 through January 3, 2026 rising 23.2% to $1.47 billion and comparable sales up 14.5% versus the prior-year holiday stretch. Buoyed by the broad-based performance, the company raised its fiscal 2025 guidance, now projecting fourth-quarter net sales of about $1.71 billion with comparable sales growth of roughly 14.5%, and full-year net sales of approximately $4.75 billion with comparable sales up about 12.5%, alongside higher expected diluted and adjusted diluted earnings per share, underscoring continued momentum in its strategy and a stronger earnings outlook for shareholders.

The most recent analyst rating on (FIVE) stock is a Buy with a $223.00 price target. To see the full list of analyst forecasts on Five Below stock, see the FIVE Stock Forecast page.