NasdaqGS:FIVE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.0%

FIVE

0.5%

US Specialty Retail

0.4%

US Market


1 Year Return

12.7%

FIVE

8.4%

US Specialty Retail

11.4%

US Market

Return vs Industry: FIVE exceeded the US Specialty Retail industry which returned 8.4% over the past year.

Return vs Market: FIVE exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

FIVEIndustryMarket
7 Day-5.0%0.5%0.4%
30 Day-1.3%4.0%0.3%
90 Day4.0%3.6%-1.2%
1 Year12.7%12.7%10.3%8.4%13.9%11.4%
3 Year248.0%248.0%44.7%37.1%47.2%37.6%
5 Year228.4%228.4%55.6%42.3%62.4%44.6%

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?

44.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FIVE ($126.42) is trading above our estimate of fair value ($55.79)

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 (44.9x) compared to the Specialty Retail industry average (15.7x).

PE vs Market: FIVE is poor value based on its PE Ratio (44.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: FIVE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: FIVE is overvalued based on its PB Ratio (10.8x) 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 21 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIVE's forecast earnings growth (19.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FIVE's earnings (19.7% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: FIVE's revenue (20.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FIVE's revenue (20.1% 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 (29.3%)


Next Steps

Past Performance

How has Five Below performed over the past 5 years?

29.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FIVE's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: FIVE's earnings growth over the past year (26.8%) is below its 5-year average (29% per year).

Earnings vs Industry: FIVE earnings growth over the past year (26.8%) exceeded the Specialty Retail industry 6.8%.


Return on Equity

High ROE: FIVE's Return on Equity (24.1%) is considered high.


Return on Assets

ROA vs Industry: FIVE has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: FIVE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Five Below's financial position?


Financial Position Analysis

Short Term Liabilities: FIVE's short term assets ($605.1M) exceeds its short term liabilities ($305.9M)

Long Term Liabilities: FIVE's short term assets (605.1M) do not cover its long term liabilities (701.6M)


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 covered by short term assets (assets are 5.3225422760169E+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%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Five Below's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Joel Anderson (54yo)

4.7yrs

Tenure

US$5,492,154

Compensation

Mr. Joel D. Anderson has been the Chief Executive Officer and President of Five Below, Inc. since February 1, 2015 and July 2014 respectively. Mr. Anderson served as Chief Operating Officer of Five Below,  ...


CEO Compensation Analysis

Compensation vs. Market: Joel's total compensation ($USD5.49M) is about average for companies of similar size in the US market ($USD6.91M).

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


Management Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

Experienced Management: FIVE's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

62yo

Average Age

Experienced Board: FIVE's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$7,998,45021 Oct 19
Thomas Vellios
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares60,000
Max PriceUS$133.31
SellUS$352,14522 Apr 19
Kathleen Barclay
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$140.86
SellUS$4,222,86622 Apr 19
Ronald Sargent
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$140.76
SellUS$3,074,49818 Dec 18
Ronald Sargent
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares31,500
Max PriceUS$97.60

Ownership Breakdown


Management Team

  • Eric Specter (61yo)

    Chief Administrative Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.52m
  • Ken Bull (56yo)

    CFO & Treasurer

    • Tenure: 7.5yrs
    • Compensation: US$1.46m
  • David Makuen (51yo)

    Executive Vice President of Marketing

    • Tenure: 1.9yrs
  • Joel Anderson (54yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$5.49m
  • Christiane Pelz

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Judy Werthauser (53yo)

    Chief Experience Officer

    • Tenure: 0.7yrs
  • George Hill (53yo)

    Executive Vice President of Retail Operations

    • Tenure: 2.4yrs
    • Compensation: US$1.43m
  • Michael Romanko (53yo)

    Chief Merchandising Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.93m
  • Karen Procell

    Secretary

    • Tenure: 0yrs
  • Rob Feuerman

    Chief Information Officer

    • Tenure: 1.1yrs

Board Members

  • Ron Sargent (63yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$184.93k
  • Tom Ryan (66yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$194.93k
  • Rick Markee (66yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$169.93k
  • Mike Devine (61yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$194.93k
  • Tom Vellios (64yo)

    Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: US$366.69k
  • Katy Barclay (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$169.93k
  • Kate Buggeln (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$169.93k
  • Joel Anderson (54yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$5.49m
  • Dinesh Lathi (48yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$164.16k
  • Dan Kaufman (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$169.93k

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$7.037b
  • 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 botto ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:34
End of Day Share Price2019/10/23 00:00
Earnings2019/08/03
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.