Five Below (FIVE) AI Stock Analysis

• Market Cap: $7.23B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.46
• Revenue Growth: 10.71%
• EPS Growth: -10.36%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Specialty Retail
• EPS (TTM): 0.86
• Shares Outstanding: 55,058,006
• 10 Day Avg. Volume: 1,303,482
• 30 Day Avg. Volume: 1,622,183
• PEG Ratio: 6.61
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.69
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 4.11
• 1Y Price Target: $126.31
• Price Target Upside: -3.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 83 Outperform
• Price Target: $146.00 ▲(11.12%Upside)

Five Below's overall stock score is driven by strong financial performance and robust technical indicators. While its valuation is somewhat high, the growth prospects justify the premium. The earnings call and corporate events reinforce a positive outlook, despite some operational challenges.

Positive Factors

Sales and Guidance

Given FIVE's positive sales tone, guidance looks beatable, especially in the back half.

Store Growth

The path of least resistance for FIVE's stock seems to be up, with guidance looking beatable and management backing accelerated store growth.

Turnaround Progress

The company's turnaround remains on track, expect potential upside to '25 estimates, and see FIVE continuing to recapture a growth multiple.

Negative Factors

Earnings Growth Challenges

Analyst retains an Underperform rating due to difficulty in arguing for multiple expansion with declining F25 EPS and flattish F26 EPS.

Margin Pressure

Margins are likely to be pressured in the second half due to tariffs and higher SG&A from incentive comp and store investments.

Tariff Impact

The tariff environment remains dynamic and is expected to be a headwind to gross margins, limiting earnings growth.

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 makes money primarily through the sale of its diverse range of products, which are sourced at low cost and sold at prices typically between $1 and $5. The company's revenue model is based on high-volume sales and rapid inventory turnover, capitalizing on impulse buying and seasonal trends. Key revenue streams include in-store sales across its growing network of brick-and-mortar locations, with an expanding footprint in various regions. In addition to physical stores, Five Below also generates revenue through its e-commerce platform, which extends its reach to digital-savvy consumers. The company's earnings are further supported by strategic partnerships with suppliers that help maintain low product costs, along with efficient supply chain operations that optimize inventory levels and minimize expenses.

Five Below Financial Statement Overview

Summary

Five Below has delivered strong financials with robust revenue growth and profitability. The company maintains strong margins and a solid equity position, despite a relatively high debt-to-equity ratio. Cash flow management is efficient, underscoring significant free cash flow growth.

Income Statement

Five Below has demonstrated consistent revenue growth with a significant increase from prior years. The gross profit margin remains strong at 34.1% TTM, indicating efficient cost management. Net profit margin and EBIT margin are healthy at 6.5% and 8.4% respectively, showcasing sustained profitability. The company's ability to grow its revenue while maintaining strong margins highlights its effective operational strategies in the competitive retail sector.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 41.9% TTM, reflecting stability. However, the debt-to-equity ratio is relatively high at 1.06, indicating significant leverage which could pose risks if not managed carefully. Return on equity is strong at 14.2%, showcasing the company's ability to generate returns from its equity base. Overall, the balance sheet reflects a well-managed, albeit leveraged, financial position.

Cash Flow

Five Below has exhibited robust cash flow management with a notable free cash flow growth rate of 148.1% TTM. The operating cash flow to net income ratio of 2.04 signifies strong cash conversion capability. Consistent free cash flow generation supports future growth initiatives and debt servicing. The cash flow statement indicates a positive trajectory in liquidity and cash efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.04B	3.88B	3.56B	3.08B	2.85B	1.96B
Gross Profit	1.38B	1.35B	1.27B	1.10B	1.03B	652.33M
EBITDA	520.99M	506.11M	516.32M	450.66M	464.71M	224.15M
Net Income	263.29M	253.61M	301.11M	261.53M	278.81M	123.36M
Balance Sheet
Total Assets	4.45B	4.34B	3.87B	3.32B	2.88B	2.31B
Cash, Cash Equivalents and Short-Term Investments	623.99M	528.79M	460.09M	399.17M	342.11M	409.71M
Total Debt	1.98B	1.98B	1.74B	1.50B	1.30B	1.11B
Total Liabilities	2.59B	2.53B	2.29B	1.96B	1.76B	1.43B
Stockholders Equity	1.86B	1.81B	1.58B	1.36B	1.12B	881.89M
Cash Flow
Free Cash Flow	264.53M	106.65M	164.57M	62.97M	39.74M	165.78M
Operating Cash Flow	536.87M	430.65M	499.62M	314.93M	327.91M	365.97M
Investing Cash Flow	-195.52M	-232.94M	-556.34M	-3.94M	-465.60M	-286.89M
Financing Cash Flow	-10.19M	-45.74M	-95.86M	-43.63M	-66.13M	-12.78M

Five Below Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 131.39 is above the 20-day moving average (MA) of 126.45, above the 50-day MA of 108.07, and above the 200-day MA of 94.24, indicating a bullish trend. The MACD of 6.13 indicates Positive momentum. The RSI at 68.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 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	83 Outperform	$7.23B	27.54	15.30%	―	10.71%	-10.36%
BBW	79 Outperform	$698.60M	12.70	40.17%	1.66%	6.09%	19.27%
SBH	76 Outperform	$1.02B	5.74	29.74%	―	0.17%	20.26%
ASO	70 Neutral	$3.15B	8.73	20.14%	1.10%	-3.57%	-17.43%
Sector *	67 Neutral	¥252.06B	13.21	6.57%	2.79%	5.06%	-11.45%
ETSY	64 Neutral	$5.52B	37.62	-39.97%	―	2.18%	-32.87%
AAP	55 Neutral	$2.94B	59.62	-23.77%	2.04%	-16.55%	-941.57%

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.

The most recent analyst rating on (FIVE) stock is a Hold with a $113.00 price target. To see the full list of analyst forecasts on Five Below stock, see the FIVE Stock Forecast page.

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.

The most recent analyst rating on (FIVE) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Five Below stock, see the FIVE Stock Forecast page.

Five Below Raises Q1 2025 Financial Outlook

On April 28, 2025, Five Below announced that co-founder and Executive Chairman Thomas G. Vellios will not stand for re-election at the 2025 Annual Meeting, transitioning to an advisory role by the end of 2025. The company also raised its first quarter 2025 financial outlook, expecting net sales of approximately $967 million and the opening of 55 new stores, reflecting a strong performance under CEO Winnie Park’s leadership and a strategic focus on product, value, and store experience.