Five Below (FIVE) AI Stock Analysis

• Market Cap: $10.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.63
• 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: 1,347,407
• 30 Day Avg. Volume: 1,123,042
• 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: 0.94
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: 17.24
• 1Y Price Target: $208.88
• Price Target Upside: 6.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 6.15
• Revenue Forecast (FY): $4.70B

• Rating: 73 Outperform
• Price Target: $221.00 ▲(12.36% Upside)

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

Revenue Growth

Strong revenue growth indicates robust demand and effective sales strategies, enhancing Five Below's market position and long-term viability.

Store Expansion

Continued store expansion strengthens Five Below's physical presence and customer reach, supporting sustained revenue growth and market penetration.

Executive Appointments

New leadership in key roles is expected to bolster strategic direction and operational efficiency, enhancing Five Below's competitive edge and growth potential.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain financial flexibility and cash flow, posing risks to long-term stability if not managed carefully.

Cash Flow Challenges

Declining free cash flow may hinder Five Below's ability to invest in growth opportunities and manage debt, impacting future financial health.

Tariff Headwinds

Tariff challenges can erode profit margins, affecting Five Below's cost structure and competitiveness in the discount retail market.

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

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. Overall, the company is well-positioned in the specialty retail industry, with a strong cash flow foundation and effective equity utilization.

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	4.43B	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: 196.69
• 50DMA: Positive
• 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 Positive. The current price of 196.69 is above the 20-day moving average (MA) of 193.32, above the 50-day MA of 174.58, and above the 200-day MA of 138.02, indicating a bullish trend. The MACD of 6.78 indicates Positive momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, 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
RVLV	77 Outperform	$2.21B	39.44	12.19%	―	9.24%	35.68%
FIVE	73 Outperform	$10.92B	35.32	17.27%	―	15.78%	14.99%
MNSO	72 Outperform	$6.13B	20.27	20.83%	3.10%	13.37%	-19.37%
GME	62 Neutral	$9.57B	25.67	8.35%	―	-12.13%	426.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TDUP	54 Neutral	$710.81M	-17.92	-35.37%	―	-4.90%	50.77%
BBWI	53 Neutral	$4.79B	7.19	―	4.16%	-1.04%	-20.88%

Five Below Corporate Events

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.