Five Below (FIVE)
NASDAQ:FIVE
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Five Below
(NASDAQ:FIVE)
Select Model
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Rating:74Outperform
Price Target:
$263.00
▲(18.62% Upside)
Action:UpgradedDate:03/20/26
The score is driven primarily by improving financial fundamentals and strong price momentum. Positive FY26 guidance supports the outlook, while premium valuation, margin pressure, and leverage/inventory risks keep the score from being higher.
Positive Factors
Revenue & comparable-sales momentum
Sustained high single- to double-digit comp growth and a 23% sales increase demonstrate durable consumer demand and effective merchandising. Over 2–6 months this underpins revenue visibility, supports operating leverage, and validates the value-price model and trend-driven product cadence.
Negative Factors
Moderately leveraged balance sheet
Debt near parity with equity constrains financial flexibility and increases sensitivity to demand shocks or rising rates. Over a 2–6 month horizon elevated leverage raises refinancing and covenant risk, limits opportunistic investment, and amplifies the impact of any cash-flow volatility from working-capital swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & comparable-sales momentum
Sustained high single- to double-digit comp growth and a 23% sales increase demonstrate durable consumer demand and effective merchandising. Over 2–6 months this underpins revenue visibility, supports operating leverage, and validates the value-price model and trend-driven product cadence.
Read all positive factors
Five Below (FIVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.25B
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)29.5
Beta (1Y)1.67
Revenue Growth15.78%
EPS Growth14.99%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength84
IndustryDiscount Stores
Share Statistics
EPS (TTM)4.31
Shares Outstanding55,238,434
10 Day Avg. Volume1,617,226
30 Day Avg. Volume1,121,005
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)4.82
Price to Sales (P/S)2.22
P/FCF Ratio25.69
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue2.85
Enterprise Value/Gross Profit8.14
Enterprise Value/Ebitda20.87
Forecast
1Y Price Target
$252.83Price Target Upside14.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)8.14
Revenue Forecast (FY)$5.31B
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, a...
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:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational and financial performance in FY2025 with broad-based comp growth, margin expansion, record store productivity and solid cash generation, driven by a deliberate transformation (social-first marketing, improved in-stock execution, cross-functional 'curtain-up' cadence). Management provided constructive FY2026 and Q1 guidance while acknowledging transitory tariff impacts, a sizable inventory build and macro/ tariff uncertainty. Overall, positive momentum and a clear strategic plan were emphasized, though execution and external risks (tariffs, inventory/working capital, consumer softness) temper upside.Positive Updates
Record Annual Sales and Strong Comparable Growth
Fiscal 2025 net sales increased ~23% to $4.8B (Winnie said >$4.7B), driven by a comparable sales increase near 12.8% (nearly 13%) and broad-based strength across categories and districts.
Negative Updates
Tariff-Related Margin Pressure and Uncertainty
Transitory tariff costs pressured gross margin (~160 bps headwind in Q4); management disclosed ~90 bps full-year tariff headwind in 2025 and assumed existing tariff rates for FY26 guidance, excluding the recently enacted 150-day Section 122 tariffs (unmodeled), creating potential downside risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Sales and Strong Comparable Growth
Fiscal 2025 net sales increased ~23% to $4.8B (Winnie said >$4.7B), driven by a comparable sales increase near 12.8% (nearly 13%) and broad-based strength across categories and districts.
Read all positive updates
Company Guidance
The company guided fiscal 2026 sales of $5.2–$5.3 billion (≈+10% at the midpoint) with comparable sales +3% to +5% (≈+17% on a two‑year stack at the midpoint), adjusted operating margin rising ~100 bps to 10.9%, adjusted diluted EPS of $8 (≈+20% vs. 2025 on 55.7M shares outstanding), net interest income ≈$26M, an effective tax rate of ≈26%, and capital expenditures of $230–$250M (excluding tenant allowances) to support ~150 net new stores; the outlook assumes global tariff rates in place at the start of the year (and excludes the temporary Section 122 tariff impact). For Q1 2026 they expect sales of $1.18–$1.20B (≈+23% at the midpoint), comps +14% to +16% (the highest‑comping quarter), ~45 net new stores in ~24 states, adjusted operating margin ≈9.7% (vs. 6.1% LY, a ≈360 bp improvement) and adjusted diluted EPS ≈$1.63 (≈+90% vs. prior year).Five Below Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.76B | 3.88B | 3.56B | 3.08B | 2.85B |
| Gross Profit | 1.52B | 1.35B | 1.27B | 1.10B | 1.03B |
| EBITDA | 649.52M | 491.26M | 516.32M | 450.66M | 464.71M |
| Net Income | 358.64M | 253.61M | 301.11M | 261.53M | 278.81M |
Balance Sheet | |||||
| Total Assets | 5.52B | 4.34B | 3.87B | 3.32B | 2.88B |
| Cash, Cash Equivalents and Short-Term Investments | 932.21M | 528.79M | 460.09M | 399.17M | 342.11M |
| Total Debt | 2.03B | 1.98B | 1.74B | 1.50B | 1.30B |
| Total Liabilities | 3.33B | 2.53B | 2.29B | 1.96B | 1.76B |
| Stockholders Equity | 2.19B | 1.81B | 1.58B | 1.36B | 1.12B |
Cash Flow | |||||
| Free Cash Flow | 411.69M | 106.65M | 164.57M | 62.97M | 39.74M |
| Operating Cash Flow | 586.43M | 430.65M | 499.62M | 314.93M | 327.91M |
| Investing Cash Flow | -186.18M | -232.94M | -556.34M | -3.94M | -465.60M |
| Financing Cash Flow | -8.27M | -45.74M | -95.86M | -43.63M | -66.13M |
Five Below Technical Analysis
Positive
221.72
Price Trends
210.55
Positive
191.76
Positive
167.07
Positive
Market Momentum
4.53
Positive
51.93
Neutral
65.00
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 221.72 is above the 20-day moving average (MA) of 221.69, above the 50-day MA of 210.55, and above the 200-day MA of 167.07, indicating a bullish trend. The MACD of 4.53 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.25B | 29.49 | 18.14% | ― | 15.78% | 14.99% | |
69 Neutral | $5.03B | 28.32 | 25.85% | 3.10% | 13.37% | -19.37% | |
67 Neutral | $1.57B | 29.01 | 12.82% | ― | 9.24% | 35.68% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.38B | 7.11 | -44.22% | 4.16% | -1.04% | -20.88% | |
54 Neutral | $9.91B | 25.55 | 8.00% | ― | -12.13% | 426.82% | |
53 Neutral | $403.98M | -38.47 | -34.47% | ― | -4.90% | 50.77% |
* Consumer Cyclical Sector Average
FIVE
Five Below
221.72
146.80
195.92%
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Five Below Corporate Events
Executive/Board Changes
Five Below Announces Executive Departure and Severance Agreement
Neutral
Feb 9, 2026
On February 3, 2026, George S. Hill’s employment with Five Below ended, and on February 8, 2026, the parties entered into a Separation Agreement and Release confirming his entitlement to severance benefits under the company’s Executive...
Business Operations and StrategyFinancial Disclosures
Five Below lifts 2025 outlook after strong holiday sales
Positive
Jan 12, 2026
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 stretc...
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.