Five Below, Inc (FIVE) stock analysis

P/E below its 5-year median

Five Below's P/E of 22.1 is below its own 5-year median of 31.7.

P/E above the industry

Five Below's P/E of 22.1 is above the Variety Stores median of 22.1.

EV/EBITDA below its 5-year median

Five Below's EV/EBITDA of 12.6 is below its 5-year median of 16.8.

P/B above the industry

Five Below's price-to-book of 5.48 is above the Variety Stores median of 5.48.

Trading below fair value

The share price of $246.68 is below our fair value estimate of $292.99.

Margin of safety under 20%

The price is 15.8% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 15.7% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 11.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 127% over the last twelve months, against a 5-year average of 23.8% a year.

Growing faster than the industry

Revenue grew 25.6% over the last twelve months; the Variety Stores median is 9.6%.

Guidance raised

Five Below raised its full year of Fiscal 2026 Net sales outlook on Jun 3, 2026.

Gross margin improving

Gross margin was 40.3% over the last twelve months, against 35.1% a year earlier.

Return on equity over 15%

Return on equity was 28.3% over the last twelve months and averaged 20.4% over five years.

Return on capital over 10%

Return on invested capital was 46.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Five Below's return on equity of 28.3% is above the Variety Stores median of 24.9%.

Earnings grew over 5 years

Net income grew 23.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.7% over the last twelve months, against a 5-year average of 8.2%.

Net margin above the industry

Five Below's net margin of 11.7% is above the Variety Stores median of 4.0%.

No debt

Five Below has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.22 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.31; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Five Below has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.