For those who appreciate growth without the sticker shock, NASDAQ:FIVE is worth considering.

Last update: Aug 9, 2024

Uncover the potential of FIVE BELOW (NASDAQ:FIVE), a growth stock that our stock screener found to be reasonably priced. NASDAQ:FIVE is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Exploring NASDAQ:FIVE's Growth

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:

FIVE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.16%, which is quite good.
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.
The Revenue has grown by 15.24% in the past year. This is quite good.
Measured over the past years, FIVE shows a quite strong growth in Revenue. The Revenue has been growing by 17.94% on average per year.
The Earnings Per Share is expected to grow by 25.19% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.34% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Valuation: NASDAQ:FIVE

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:FIVE scores a 5 out of 10:

FIVE's Price/Earnings ratio is a bit cheaper when compared to the industry. FIVE is cheaper than 78.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.78. FIVE is valued rather cheaply when compared to this.
72.00% of the companies in the same industry are more expensive than FIVE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FIVE to the average of the S&P500 Index (20.41), we can say FIVE is valued slightly cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FIVE indicates a rather cheap valuation: FIVE is cheaper than 80.80% of the companies listed in the same industry.
The decent profitability rating of FIVE may justify a higher PE ratio.

Assessing Health Metrics for NASDAQ:FIVE

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:FIVE has received a 7 out of 10:

FIVE's Altman-Z score of 2.78 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.

How do we evaluate the Profitability for 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:

Looking at the Return On Assets, with a value of 7.47%, FIVE is in the better half of the industry, outperforming 78.40% of the companies in the same industry.
FIVE has a better Return On Equity (18.62%) than 77.60% of its industry peers.
With a decent Return On Invested Capital value of 8.89%, FIVE is doing good in the industry, outperforming 71.20% of the companies in the same industry.
Looking at the Profit Margin, with a value of 8.09%, FIVE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
FIVE has a better Operating Margin (10.41%) than 84.80% of its industry peers.

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

Our latest full fundamental report of FIVE contains the most current fundamental analsysis.

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.