NasdaqGS:FIVE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Five Below, Inc. operates as a specialty value retailer in the United States. More Details


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Five Below's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIVE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FIVE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

FIVE

-4.1%

US Specialty Retail

-3.4%

US Market


1 Year Return

95.9%

FIVE

50.0%

US Specialty Retail

29.4%

US Market

Return vs Industry: FIVE exceeded the US Specialty Retail industry which returned 54.6% over the past year.

Return vs Market: FIVE exceeded the US Market which returned 41.9% over the past year.


Shareholder returns

FIVEIndustryMarket
7 Day-1.2%-4.1%-3.4%
30 Day11.4%2.5%0.6%
90 Day18.1%14.2%6.3%
1 Year95.9%95.9%51.0%50.0%32.2%29.4%
3 Year178.9%178.9%95.0%87.0%51.3%41.7%
5 Year404.7%404.7%91.3%76.1%119.6%95.2%

Long-Term Price Volatility Vs. Market

How volatile is Five Below's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Five Below undervalued compared to its fair value and its price relative to the market?

97.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FIVE ($194.49) is trading above our estimate of fair value ($93.45)

Significantly Below Fair Value: FIVE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FIVE is poor value based on its PE Ratio (99.1x) compared to the US Specialty Retail industry average (19.2x).

PE vs Market: FIVE is poor value based on its PE Ratio (99.1x) compared to the US market (21.7x).


Price to Earnings Growth Ratio

PEG Ratio: FIVE is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: FIVE is overvalued based on its PB Ratio (14.5x) compared to the US Specialty Retail industry average (2.9x).


Next Steps

Future Growth

How is Five Below forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIVE's forecast earnings growth (36.4% per year) is above the savings rate (2%).

Earnings vs Market: FIVE's earnings (36.4% per year) are forecast to grow faster than the US market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FIVE's revenue (21.3% per year) is forecast to grow faster than the US market (10.7% per year).

High Growth Revenue: FIVE's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FIVE's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has Five Below performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIVE has high quality earnings.

Growing Profit Margin: FIVE's current net profit margins (6.1%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: FIVE's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: FIVE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FIVE had negative earnings growth (-28.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (22.7%).


Return on Equity

High ROE: FIVE's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Five Below's financial position?


Financial Position Analysis

Short Term Liabilities: FIVE's short term assets ($712.3M) exceed its short term liabilities ($496.8M).

Long Term Liabilities: FIVE's short term assets ($712.3M) do not cover its long term liabilities ($929.1M).


Debt to Equity History and Analysis

Debt Level: FIVE is debt free.

Reducing Debt: FIVE has not had any debt for past 5 years.

Debt Coverage: FIVE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FIVE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Five Below current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FIVE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FIVE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FIVE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FIVE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FIVE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Joel Anderson (55 yo)

6.08yrs

Tenure

US$5,969,576

Compensation

Mr. Joel D. Anderson has been the Chief Executive Officer and Director of Five Below, Inc. since February 1, 2015 and has been its President since July 2014. Mr. Anderson has been a Independent Director of...


CEO Compensation Analysis

Compensation vs Market: Joel's total compensation ($USD5.97M) is below average for companies of similar size in the US market ($USD10.44M).

Compensation vs Earnings: Joel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Vellios
Co-Founder & Non-Executive Chairman6.08yrsUS$439.91k0.73%
$ 78.2m
Joel Anderson
President6.08yrsUS$5.97m0.46%
$ 49.3m
Kenneth Bull
CFO & Treasurer8.92yrsUS$1.24m0.14%
$ 14.8m
Eric Specter
Chief Administrative Officer6.67yrsUS$1.25m0.058%
$ 6.2m
Michael Romanko
Chief Merchandising Officer6.17yrsUS$1.23m0.044%
$ 4.7m
Judith Werthauser
Chief Experience Officer2.08yrsUS$2.16m0.0028%
$ 297.7k
George Hill
Executive Vice President of Operations3.83yrsUS$1.43m0.031%
$ 3.3m
Rob Feuerman
Chief Information Officer2.5yrsno datano data
Christiane Pelz
Vice President of Investor Relationsno datano datano data
Ronald Masciantonio
Secretaryno datano datano data

6.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FIVE's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Vellios
Co-Founder & Non-Executive Chairman6.08yrsUS$439.91k0.73%
$ 78.2m
Joel Anderson
President6.08yrsUS$5.97m0.46%
$ 49.3m
Ronald Sargent
Independent Director17.17yrsUS$227.40k0.19%
$ 20.2m
Thomas Ryan
Independent Director10.17yrsUS$234.90k0.19%
$ 20.9m
Richard Markee
Independent Director4.83yrsUS$209.90k0.011%
$ 1.2m
Michael Devine
Independent Director8yrsUS$234.90k0.024%
$ 2.6m
Kathleen Barclay
Independent Director6yrsUS$209.90k0.016%
$ 1.7m
Catherine Buggeln
Independent Director6yrsUS$209.90k0.021%
$ 2.2m
Dinesh Lathi
Independent Director3yrsUS$209.90k0.0039%
$ 419.1k
Zuhairah Washington
Independent Director0.50yrno data0.0014%
$ 149.4k

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: FIVE's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FIVE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Five Below, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Five Below, Inc.
  • Ticker: FIVE
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$10.746b
  • Shares outstanding: 55.87m
  • Website: https://www.fivebelow.com

Number of Employees


Location

  • Five Below, Inc.
  • 701 Market Street
  • Suite 300
  • Philadelphia
  • Pennsylvania
  • 19106
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIVENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2012
6F1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2012
0IPDLSE (London Stock Exchange)YesCommon StockGBUSDJul 2012

Biography

Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and botto...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 23:38
End of Day Share Price2021/03/03 00:00
Earnings2020/10/31
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.