Investors should take note of NASDAQ:FIVE, a growth stock that remains attractively priced.

Last update: Jul 19, 2024

Consider FIVE BELOW (NASDAQ:FIVE) as an affordable growth stock, identified by our stock screening tool. NASDAQ:FIVE is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: NASDAQ:FIVE

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:FIVE boasts a 7 out of 10:

The Earnings Per Share has grown by an nice 12.16% over the past year.
Measured over the past years, FIVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.56% on average per year.
FIVE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.24%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
FIVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.19% yearly.
The Revenue is expected to grow by 16.34% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NASDAQ:FIVE's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:FIVE has achieved a 5 out of 10:

Based on the Price/Earnings ratio, FIVE is valued a bit cheaper than 74.40% of the companies in the same industry.
FIVE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.83.
Based on the Price/Forward Earnings ratio, FIVE is valued a bit cheaper than 70.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FIVE to the average of the S&P500 Index (20.60), we can say FIVE is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, FIVE is valued a bit cheaper than 74.40% of the companies in the same industry.
FIVE has a very decent profitability rating, which may justify a higher PE ratio.

Health Examination for NASDAQ:FIVE

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:FIVE, the assigned 7 reflects its health status:

FIVE's Altman-Z score of 2.93 is fine compared to the rest of the industry. FIVE outperforms 64.00% of its industry peers.
FIVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Profitability Assessment of NASDAQ:FIVE

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:FIVE, the assigned 6 is noteworthy for profitability:

FIVE has a Return On Assets of 7.47%. This is in the better half of the industry: FIVE outperforms 76.80% of its industry peers.
With a decent Return On Equity value of 18.62%, FIVE is doing good in the industry, outperforming 76.00% of the companies in the same industry.
FIVE has a Return On Invested Capital of 8.89%. This is in the better half of the industry: FIVE outperforms 69.60% of its industry peers.
FIVE has a Profit Margin of 8.09%. This is amongst the best in the industry. FIVE outperforms 84.00% of its industry peers.
The Operating Margin of FIVE (10.41%) is better than 84.80% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of FIVE

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.