Five Below Inc (FIVE)
NASDAQ:FIVE
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Five Below
(NASDAQ:FIVE)
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Rating:69Neutral
Price Target:
$212.00
▼(-10.27% Downside)
Action:Reiterated
Date:06/17/26
The score is driven by strong earnings-call guidance and improving financial performance (better margins and solid free cash flow), partially offset by weak technical momentum (price below key moving averages and negative MACD). Valuation is middle-of-the-road on the provided P/E, and the recent governance event is a modest positive but not a primary driver.
Positive Factors
Strong cash generation
Consistent, sizable free cash flow (~$505M TTM, +22.7%) provides durable internal funding for store growth, capex, and debt reduction. Reliable cash conversion supports reinvestment in merchandising and marketing while buffering the business through consumer cyclicality over the next 2–6 months.
Negative Factors
Elevated absolute debt
Despite improved leverage ratios, ~ $2.0B of debt leaves limited financial flexibility for a discretionary retailer if sales soften. Interest and covenant exposure can constrain capital allocation, elevating execution risk across the expansion plan over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable free cash flow (~$505M TTM, +22.7%) provides durable internal funding for store growth, capex, and debt reduction. Reliable cash conversion supports reinvestment in merchandising and marketing while buffering the business through consumer cyclicality over the next 2–6 months.
Read all positive factors
Five Below (FIVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.70B
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)24.2
Beta (1Y)1.72
Revenue Growth25.87%
EPS Growth66.82%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength84
IndustryDiscount Stores
Share Statistics
EPS (TTM)7.99
Shares Outstanding55,295,350
10 Day Avg. Volume1,461,318
30 Day Avg. Volume1,457,174
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)4.82
Price to Sales (P/S)2.22
P/FCF Ratio25.69
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.35
Enterprise Value/Gross Profit6.75
Enterprise Value/Ebitda15.24
Forecast
1Y Price Target
$256.93Price Target Upside8.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)8.99
Revenue Forecast (FY)$5.50B
Five Below Business Overview & Revenue Model
Company Description
Five Below, Inc. operates as a prominent specialty discount retailer primarily serving the United States market. The company's diverse inventory spans a wide array of personal accessories, from fashionable novelty socks, sunglasses, and jewelry to...
How the Company Makes Money
Five Below primarily makes money by buying consumer goods from vendors and selling them at a markup through its retail channels, generating revenue mainly from net sales of merchandise. Its core revenue stream is in-store sales across multiple dis...
Five Below Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial performance: strong sales (+~33%), widespread comps (+23%), substantial margin expansion, robust cash and a raised full-year outlook. Management emphasized tactical execution wins (social-first marketing, trend activation, store experience improvements) and maintained investment to support growth. Offsetting this optimism, leadership reiterated caution around macro headwinds (inflation, fuel), higher inventory levels, and the need to cycle tough comparisons in the back half of the year. Overall the message was confidence in the business model and continued execution, tempered by prudent conservatism on external risks.Positive Updates
Top-line Growth and Comparable Sales
Net sales increased nearly 33% to $1.3 billion in Q1, driven by comparable sales growth of ~23% and a 2-year stack comp of ~30%. This marked the fifth consecutive quarter of positive comps and fourth straight quarter of double-digit comp growth.
Negative Updates
Macro Caution and Back-Half Uncertainty
Management flagged a cautious view on the macro environment, consumer sentiment and sticky inflation. Half 2 comparable sales assumptions were left unchanged as a conservative posture given stronger year-ago comps to cycle (e.g., cycling ~15% comp in H2).
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Growth and Comparable Sales
Net sales increased nearly 33% to $1.3 billion in Q1, driven by comparable sales growth of ~23% and a 2-year stack comp of ~30%. This marked the fifth consecutive quarter of positive comps and fourth straight quarter of double-digit comp growth.
Read all positive updates
Company Guidance
Management raised its outlook and gave Q2 and full‑year targets: for Q2 they now expect $1.18–$1.20 billion in sales (≈16% growth at the midpoint) with comparable sales +7–9%, ~50 new stores (vs. 32 LY), adjusted operating margin ~7% (vs. 5.4% LY), adjusted net income ≈$68M at the midpoint and adjusted diluted EPS ≈$1.23 (vs. $0.81 LY), Q2 net interest income ≈$8M and an effective tax rate of ~25%; for the full year they expect $5.40–$5.48 billion in sales (≈14% growth at the midpoint), comparable sales +6–8% (≈20% 2‑yr stack at midpoint), adjusted operating margin ~11.6% (up ~170 bps), SG&A rate of sale flat to 2025, adjusted diluted EPS ≈$8.85 on ~55.7M shares (≈33% growth vs. 2025), net interest income ≈$31M, capital expenditures of $230–$250M (ex. tenant allowances) to support ~150 net new stores, while maintaining H2 comp assumptions, flowing through the 10% global tariff benefit through July 24 (then assuming reversion), and not assuming any IEEPA tariff refunds.Five Below Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.08B | 4.76B | 3.88B | 3.56B | 3.08B | 2.85B |
| Gross Profit | 1.77B | 1.52B | 1.35B | 1.27B | 1.10B | 1.03B |
| EBITDA | 783.06M | 672.49M | 506.11M | 531.85M | 453.15M | 455.01M |
| Net Income | 440.55M | 358.64M | 253.61M | 301.11M | 261.53M | 278.81M |
Balance Sheet | ||||||
| Total Assets | 5.06B | 5.52B | 4.34B | 3.87B | 3.32B | 2.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 932.21M | 528.79M | 460.09M | 399.17M | 342.11M |
| Total Debt | 2.00B | 2.03B | 1.98B | 1.74B | 1.50B | 1.30B |
| Total Liabilities | 2.74B | 3.33B | 2.53B | 2.29B | 1.96B | 1.76B |
| Stockholders Equity | 2.31B | 2.19B | 1.81B | 1.58B | 1.36B | 1.12B |
Cash Flow | ||||||
| Free Cash Flow | 505.27M | 411.69M | 106.65M | 164.57M | 62.97M | 39.74M |
| Operating Cash Flow | 680.99M | 586.43M | 430.65M | 499.62M | 314.93M | 327.91M |
| Investing Cash Flow | -453.56M | -186.18M | -232.94M | -556.34M | -3.94M | -465.60M |
| Financing Cash Flow | -16.00M | -8.27M | -45.74M | -95.86M | -43.63M | -66.13M |
Five Below Technical Analysis
Negative
236.26
Price Trends
217.24
Negative
216.82
Negative
191.39
Positive
Market Momentum
-7.60
Positive
39.93
Neutral
42.82
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 236.26 is above the 20-day moving average (MA) of 204.83, above the 50-day MA of 217.24, and above the 200-day MA of 191.39, indicating a neutral trend. The MACD of -7.60 indicates Positive momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 42.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVE.
Five Below Risk Analysis
Five Below disclosed 33 risk factors in its most recent earnings report. Five Below reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Five Below Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $10.70B | 24.21 | 21.07% | ― | 25.87% | 66.82% | |
69 Neutral | $1.56B | 24.24 | 12.85% | ― | 10.02% | 26.46% | |
66 Neutral | $3.61B | 11.71 | 18.85% | 3.10% | 30.50% | -13.32% | |
63 Neutral | $3.96B | 5.66 | -52.38% | 4.16% | -1.40% | -4.34% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $762.63M | -34.44 | -36.11% | ― | 10.25% | 70.25% | |
54 Neutral | $9.49B | 12.44 | 14.03% | ― | 1.61% | 260.81% |
* Consumer Cyclical Sector Average
FIVE
Five Below
193.45
69.17
55.66%
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Five Below Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Five Below Shareholders Back Board, Governance Reforms at Meeting
Positive
Jun 16, 2026
At the June 16, 2026 annual meeting, Five Below shareholders elected nine directors to serve until the 2027 meeting, with each nominee receiving strong majority support, underscoring broad investor backing for the company’s board composition...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.