Five Below (FIVE) AI Stock Analysis

• Market Cap: $8.43B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.50
• Revenue Growth: 13.88%
• EPS Growth: -2.64%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Specialty Retail
• EPS (TTM): 0.81
• Shares Outstanding: 55,145,462
• 10 Day Avg. Volume: 1,725,852
• 30 Day Avg. Volume: 1,240,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 16.22
• 1Y Price Target: $157.20
• Price Target Upside: 2.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 77 Outperform
• Price Target: $170.00 ▲(10.82% Upside)

Five Below's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting record sales and strategic growth initiatives. Technical indicators show bullish momentum, although valuation concerns due to a high P/E ratio and no dividend yield slightly temper the outlook.

Positive Factors

Financial Performance

FIVE reported 2Q25 adjusted EPS of $0.81, above the consensus estimates, indicating strong financial performance.

Guidance and Forecasts

Management raised their FY25 guidance, incorporating the first half beat and expecting continued acceleration in the second half.

Sales Growth

Sales increased by 23.7% to $1026.8 million, showcasing the company's robust growth.

Negative Factors

Earnings Growth

Below-average EPS growth in '26e would slow the stock's ascent.

Profitability Challenges

Five Below Inc faces margin headwinds due to labor investment and executive compensation, which may constrain profitability.

Tariff Impact

Tariff headwinds will weigh on profitability over the coming months and into '26e.

Five Below Business Overview & Revenue Model

Company Description

Five Below, Inc. is a leading retail chain in the United States that specializes in selling a wide variety of products for teenagers and pre-teens, all priced at $5 or below. The company operates in the discount retail sector, offering an extensive range of merchandise including toys, games, electronics, fashion accessories, beauty products, and seasonal items. With a focus on fun and trendy products, Five Below aims to create an engaging shopping experience for its target demographic, which primarily includes young consumers looking for affordable goods.

How the Company Makes Money

Five Below generates revenue primarily through the sale of its merchandise, which is sourced from various suppliers and manufacturers. The company's pricing strategy allows it to attract budget-conscious consumers, with all items priced at $5 or below. Key revenue streams include in-store sales and online sales through its e-commerce platform. Additionally, Five Below benefits from seasonal promotions and exclusive product launches that drive traffic to its stores and website. The company has also expanded its offerings to include a selection of merchandise in the $1 to $5 range, which has helped to enhance its product mix and appeal. Strategic partnerships with popular brands and franchises, as well as the development of private label products, further contribute to its earnings by creating unique offerings that differentiate it from competitors.

Five Below Financial Statement Overview

Summary

Five Below demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins have slightly declined, they remain healthy. The balance sheet shows moderate leverage, which should be monitored to ensure financial stability.

Income Statement

Five Below has shown consistent revenue growth with a TTM growth rate of 4.88% and a strong historical trend. The gross profit margin is stable at around 34%, and the net profit margin is healthy at 6.45%. However, there is a slight decline in margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is slightly above 1, indicating moderate leverage. Return on equity is solid at 15.19%, showing effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced asset structure, but the rising debt levels could pose a risk if not managed carefully.

Cash Flow

Five Below's cash flow is strong, with a significant 30.48% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to profits. The free cash flow to net income ratio is also robust, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.23B	3.88B	3.56B	3.08B	2.85B	1.96B
Gross Profit	1.44B	1.35B	1.27B	1.10B	1.03B	652.33M
EBITDA	537.96M	491.26M	516.32M	450.66M	464.71M	224.15M
Net Income	273.05M	253.61M	301.11M	261.53M	278.81M	123.36M
Balance Sheet
Total Assets	4.61B	4.34B	3.87B	3.32B	2.88B	2.31B
Cash, Cash Equivalents and Short-Term Investments	670.16M	528.79M	460.09M	399.17M	342.11M	409.71M
Total Debt	2.02B	1.98B	1.74B	1.50B	1.30B	1.11B
Total Liabilities	2.70B	2.53B	2.29B	1.96B	1.76B	1.43B
Stockholders Equity	1.91B	1.81B	1.58B	1.36B	1.12B	881.89M
Cash Flow
Free Cash Flow	345.16M	106.65M	164.57M	62.97M	39.74M	165.78M
Operating Cash Flow	558.61M	430.65M	499.62M	314.93M	327.91M	365.97M
Investing Cash Flow	-202.19M	-232.94M	-556.34M	-3.94M	-465.60M	-286.89M
Financing Cash Flow	-2.72M	-45.74M	-95.86M	-43.63M	-66.13M	-12.78M

Five Below Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 153.4 is above the 20-day moving average (MA) of 142.32, above the 50-day MA of 137.80, and above the 200-day MA of 104.69, indicating a bullish trend. The MACD of 4.43 indicates Negative momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.77 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
BBW	79 Outperform	$804.67M	13.65	42.13%	1.30%	8.10%	25.56%
FIVE	77 Outperform	$8.43B	30.91	15.54%	―	13.88%	-2.64%
SBH	72 Outperform	$1.40B	7.82	28.94%	―	-0.38%	35.78%
ASO	72 Outperform	$3.33B	9.32	18.42%	0.94%	-2.20%	-17.95%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
ETSY	57 Neutral	$5.17B	43.23	-39.97%	―	2.38%	-38.88%
AAP	48 Neutral	$3.60B	59.62	-24.78%	1.65%	-22.50%	-35219.23%

Five Below Corporate Events

Five Below Holds Annual Shareholders Meeting on June 12

On June 12, 2025, Five Below, Inc. held its Annual Meeting of Shareholders, where key decisions were made, including the election of ten directors and the ratification of KPMG LLP as the independent accounting firm. The shareholders also approved executive compensation and decided to hold annual advisory votes on this matter, reflecting the company’s commitment to governance and accountability.

Five Below Announces CFO Transition Amid Strong Q1 Results

Five Below, Inc. announced a transition in its executive team, with Kristy Chipman stepping down as Chief Financial Officer and Treasurer, effective June 6, 2025, and Kenneth R. Bull appointed as interim CFO. This change is not due to any disagreements with the company, and Chipman will assist in the transition for 90 days. Additionally, co-founder Thomas Vellios will cease employment on June 12, 2025, but will continue to provide consulting services until the end of the year. The company also reported strong financial results for the first quarter of fiscal 2025, with a 19.5% increase in net sales and a 7.1% rise in comparable sales, reflecting the effectiveness of its customer-centric strategy.