Five Below (FIVE) AI Stock Analysis

• Market Cap: $8.29B
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.68
• Revenue Growth: 13.88%
• EPS Growth: -2.64%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Discount Stores
• EPS (TTM): 0.81
• Shares Outstanding: 55,145,462
• 10 Day Avg. Volume: 1,055,306
• 30 Day Avg. Volume: 1,154,667
• 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: 1.05
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 16.22
• 1Y Price Target: $162.47
• Price Target Upside: 8.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 5.13
• Revenue Forecast (FY): $4.51B

• Rating: 75 Outperform
• Price Target: $172.00 ▲(14.48% Upside)

Five Below's strong financial performance and positive earnings call outlook are the most significant factors driving the score. The company's robust sales growth and effective cost management are offset by valuation concerns and potential margin pressures from tariffs and SG&A expenses. Technical indicators show a positive trend, but the stock's premium valuation may limit upside potential.

Positive Factors

Revenue Growth

Achieving significant sales growth indicates strong market demand and effective business strategies, reinforcing Five Below's position in the discount retail sector.

Store Expansion

Expanding into new geographic regions like the Pacific Northwest enhances market reach and customer base, supporting long-term growth and brand presence.

Leadership Enhancements

New leadership in key roles can drive strategic initiatives and operational efficiency, potentially leading to improved financial performance and competitive positioning.

Negative Factors

Tariff Challenges

Ongoing tariff-related costs can pressure margins, impacting profitability and potentially limiting the company's ability to invest in growth initiatives.

SG&A Pressures

Rising SG&A expenses can erode operating margins, affecting overall profitability and financial flexibility in the long term.

Moderate Leverage

Moderate leverage could pose a risk if not managed carefully, potentially impacting the company's ability to finance future growth and navigate economic downturns.

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 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: Neutral
• Last Price: 150.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVE, the sentiment is Neutral. The current price of 150.24 is below the 20-day moving average (MA) of 155.18, below the 50-day MA of 152.53, and above the 200-day MA of 116.64, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FIVE.

Five Below Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNSO	78 Outperform	$6.49B	19.58	22.92%	2.98%	10.93%	-10.89%
FIVE	75 Outperform	$8.29B	30.81	15.54%	―	13.88%	-2.64%
RVLV	71 Outperform	$1.58B	27.39	12.19%	―	9.24%	35.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	59 Neutral	$4.67B	6.74	―	3.49%	-0.18%	-18.95%
GME	53 Neutral	$9.86B	29.19	7.58%	―	-15.48%	528.37%
TDUP	52 Neutral	$994.88M	―	-35.37%	―	-4.90%	50.77%

Five Below Corporate Events

Five Below Appoints New CFO and CMO

On October 1, 2025, Five Below announced the appointment of Daniel Sullivan as Chief Financial Officer and Michelle Israel as Chief Merchandising Officer, effective October 6, 2025. Sullivan, with extensive experience in finance and operations, will oversee financial operations and related strategies, while Israel will manage merchandising and product development. These appointments are expected to strengthen Five Below’s executive team and support its growth objectives, enhancing its market position as a trend-right, extreme-value retailer.

The most recent analyst rating on (FIVE) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Five Below stock, see the FIVE Stock Forecast page.

Five Below Inc. Reports Record Sales and Growth

Five Below Inc. recently held its earnings call, presenting a generally positive outlook driven by record sales, strong comparable sales growth, and effective cost management. Despite these positive notes, the company acknowledged ongoing challenges related to tariffs and SG&A pressures. However, Five Below is leveraging its brand strength and customer-centric strategies to sustain growth.

Five Below Reports Strong Q2 Growth and Expansion

Five Below, Inc. is a high-growth value retailer offering a wide range of trend-right, high-quality products primarily priced between $1 and $5, catering to tweens, teens, and beyond, with over 1,850 stores across 44 states.