NasdaqGS:FIVE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

FIVE

2.6%

US Specialty Retail

1.5%

US Market


1 Year Return

-10.4%

FIVE

17.3%

US Specialty Retail

20.1%

US Market

Return vs Industry: FIVE underperformed the US Specialty Retail industry which returned 17.3% over the past year.

Return vs Market: FIVE underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

FIVEIndustryMarket
7 Day3.6%2.6%1.5%
30 Day-0.3%0.2%1.4%
90 Day-4.5%4.1%8.7%
1 Year-10.4%-10.4%19.1%17.3%22.7%20.1%
3 Year191.1%191.1%45.0%38.1%50.1%40.5%
5 Year263.2%263.2%50.0%37.8%73.1%54.1%

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?

41.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FIVE ($115.69) is trading above our estimate of fair value ($38.74)

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 (42x) compared to the Specialty Retail industry average (16.7x).

PE vs Market: FIVE is poor value based on its PE Ratio (42x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: FIVE is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: FIVE is overvalued based on its PB Ratio (10x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Five Below forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIVE's forecast earnings growth (16.9% per year) is above the savings rate (1.7%).

Earnings vs Market: FIVE's earnings (16.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: FIVE's earnings are forecast to grow, but not significantly.

Revenue vs Market: FIVE's revenue (18% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FIVE's revenue (18% per year) is forecast to grow slower 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 (25.9%)


Next Steps

Past Performance

How has Five Below performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIVE has a high level of non-cash earnings.

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


Past Earnings Growth Analysis

Earnings Trend: FIVE's earnings have grown significantly by 28.3% per year over the past 5 years.

Accelerating Growth: FIVE's earnings growth over the past year (20.5%) is below its 5-year average (28.3% per year).

Earnings vs Industry: FIVE earnings growth over the past year (20.5%) exceeded the Specialty Retail industry 5.8%.


Return on Equity

High ROE: FIVE's Return on Equity (23.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Five Below's financial position?


Financial Position Analysis

Short Term Liabilities: FIVE's short term assets ($626.0M) exceed its short term liabilities ($397.8M).

Long Term Liabilities: FIVE's short term assets ($626.0M) do not cover its long term liabilities ($790.6M).


Debt to Equity History and Analysis

Debt Level: FIVE is debt free.

Reducing Debt: FIVE had no debt 5 years ago.

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

Inventory Level: FIVE has a high level of physical assets or inventory.

Debt Coverage by Assets: FIVE's debt is not covered by short term assets (assets are -5.5060903491113E+15x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

5.0yrs

Average management tenure


CEO

Joel Anderson (54yo)

5yrs

Tenure

US$5,492,154

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 Director of Sprouts Far ...


CEO Compensation Analysis

Compensation vs Market: Joel's total compensation ($USD5.49M) is about average for companies of similar size in the US market ($USD6.26M).

Compensation vs Earnings: Joel's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Vellios
Co-Founder & Non-Executive Chairman5yrsUS$366.69k1.09% $69.9m
Joel Anderson
President5yrsUS$5.49m0.25% $15.9m
Kenneth Bull
CFO & Treasurer7.8yrsUS$1.46m0.14% $8.9m
Eric Specter
Chief Administrative Officer5.6yrsUS$1.52m0.028% $1.8m
Michael Romanko
Chief Merchandising Officer5.1yrsUS$1.93m0.018% $1.2m
George Hill
Executive Vice President of Retail Operations2.8yrsUS$1.43m0.0076% $489.5k
Rob Feuerman
Chief Information Officer1.4yrsno datano data
Christiane Pelz
Vice President of Investor Relations0yrsno datano data
David Makuen
Executive Vice President of Marketing2.3yrsno data0.026% $1.7m
Judith Werthauser
Chief Experience Officer1yrsno data0.015% $989.3k

5.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FIVE's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Vellios
Co-Founder & Non-Executive Chairman5yrsUS$366.69k1.09% $69.9m
Joel Anderson
President5yrsUS$5.49m0.25% $15.9m
Ronald Sargent
Independent Director16.1yrsUS$184.93k0.23% $14.9m
Thomas Ryan
Independent Director9.1yrsUS$194.93k0.19% $12.4m
Richard Markee
Independent Director3.8yrsUS$169.93k0.0091% $584.2k
Michael Devine
Independent Director6.9yrsUS$194.93k0.022% $1.4m
Kathleen Barclay
Independent Director4.9yrsUS$169.93k0.013% $852.1k
Catherine Buggeln
Independent Director4.9yrsUS$169.93k0.019% $1.2m
Dinesh Lathi
Independent Director1.9yrsUS$164.16k0.0037% $240.9k

5.0yrs

Average Tenure

63yo

Average Age

Experienced Board: FIVE's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$6.441b
  • Shares outstanding: 55.67m
  • 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 bottoms, and T-shirts, as well as nail polishes, lip glosses, fragrances, and branded cosmetics; and items used to complete and personalize living space, including glitter lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, and related items, as well as provides storage options for the customers room. The company also provides sport balls; team sports merchandise and fitness accessories, such as hand weights, jump ropes, and gym balls; games, including name brand board games, puzzles, collectibles, and toys covering remote control; and pool, beach, and outdoor toys, as well as games and accessories. In addition, it offers accessories, such as cases, chargers, headphones, and other related items for cell phones, tablets, audio, and computers; books, video games, and DVDs; craft activity kits; arts and crafts supplies that consist of crayons, markers, and stickers; and trend-right items for school comprising backpacks, fashion notebooks and journals, novelty pens and pencils, locker accessories, and everyday name brand items. Further, the company provides party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise products; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food; chilled drinks through coolers; and seasonally-specific items used to celebrate and decorate for events. It primarily serves tween and teen customers. As of August 28, 2019, Five Below, Inc. operated 800 stores in 36 states. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was founded in 2002 and is headquartered in Philadelphia, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:01
End of Day Share Price2020/02/14 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


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.