Five Below (FIVE) AI Stock Analysis

• Market Cap: $7.60B
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.44
• Revenue Growth: 10.71%
• EPS Growth: -10.36%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Specialty Retail
• EPS (TTM): 0.86
• Shares Outstanding: 55,058,006
• 10 Day Avg. Volume: 974,918
• 30 Day Avg. Volume: 1,084,083
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: $135.60
• Price Target Upside: -1.95% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 77 Outperform
• Price Target: $159.00 ▲(14.97% Upside)

Five Below's strong financial performance and positive earnings call were significant factors driving the score. Technical indicators suggest an upward trend, though overbought signals warrant caution. Valuation metrics point to a moderately overvalued position, and corporate events show effective management amidst leadership transitions.

Positive Factors

Merchandising Execution

Strong merchandising execution continues to drive momentum into the next quarter.

Sales Performance

Comps increased 7.1%, driven by transactions and ticket, with strength in style, beauty, and novelty food.

Turnaround Strategy

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 Guidance

Management is expected to maintain conservative EPS guidance due to incremental China tariffs and consumer uncertainty in the second half.

Leadership Change

FIVE announced its CFO, Kristy Chipman, will be stepping down for personal reasons.

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. is a leading retail chain in the United States that specializes in selling a wide variety of products for teenagers and pre-teens, all priced at $5 or below. The company operates in the discount retail sector, offering an extensive range of merchandise including toys, games, electronics, fashion accessories, beauty products, and seasonal items. With a focus on fun and trendy products, Five Below aims to create an engaging shopping experience for its target demographic, which primarily includes young consumers looking for affordable goods.

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 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: 138.30
• 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 138.3 is above the 20-day moving average (MA) of 137.36, above the 50-day MA of 131.60, and above the 200-day MA of 100.33, indicating a bullish trend. The MACD of 1.40 indicates Positive momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.57 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
BBW	78 Outperform	$735.59M	13.38	40.17%	1.48%	6.09%	19.27%
FIVE	77 Outperform	$7.60B	28.99	15.30%	―	10.71%	-10.36%
SBH	72 Outperform	$1.24B	7.30	28.94%	―	-0.38%	35.78%
ASO	72 Outperform	$3.46B	9.58	20.14%	0.87%	-3.57%	-17.43%
ETSY	63 Neutral	$6.59B	53.17	-39.97%	―	2.38%	-38.88%
Sector *	59 Neutral	€9.01B	10.12	-13.89%	4.58%	0.76%	-39.51%
AAP	54 Neutral	$3.54B	59.62	-24.78%	1.62%	-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.