Investors seeking growth at a reasonable cost should explore NASDAQ:FIVE.

FIVE BELOW (NASDAQ:FIVE) was identified as an affordable growth stock by our stock screener. NASDAQ:FIVE is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Analysis for NASDAQ:FIVE

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:FIVE has received a 7 out of 10:

• FIVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.56% yearly.
• Looking at the last year, FIVE shows a quite strong growth in Revenue. The Revenue has grown by 14.32% in the last year.
• FIVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.94% yearly.
• Based on estimates for the next years, FIVE will show a very strong growth in Earnings Per Share. The EPS will grow by 25.19% on average per year.
• FIVE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.34% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Examination for NASDAQ:FIVE

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:FIVE has received a 5 out of 10:

• Based on the Price/Earnings ratio, FIVE is valued a bit cheaper than the industry average as 72.65% of the companies are valued more expensively.
• FIVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.99.
• Based on the Price/Forward Earnings ratio, FIVE is valued a bit cheaper than the industry average as 67.52% of the companies are valued more expensively.
• FIVE is valuated cheaply when we compare the Price/Forward Earnings ratio to 96.58, which is the current average of the S&P500 Index.
• FIVE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FIVE is cheaper than 65.81% of the companies in the same industry.
• FIVE has a very decent profitability rating, which may justify a higher PE ratio.

Health Assessment of 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 2.90 is fine compared to the rest of the industry. FIVE outperforms 63.25% 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 Examination for NASDAQ:FIVE

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:FIVE was assigned a score of 6 for profitability:

• FIVE's Return On Assets of 6.41% is fine compared to the rest of the industry. FIVE outperforms 73.50% of its industry peers.
• FIVE has a better Return On Equity (16.61%) than 74.36% of its industry peers.
• FIVE has a better Return On Invested Capital (7.85%) than 67.52% of its industry peers.
• FIVE has a better Profit Margin (7.02%) than 83.76% of its industry peers.
• FIVE's Operating Margin of 9.04% is amongst the best of the industry. FIVE outperforms 82.05% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.