FIVE BELOW (FIVE) Stock Fundamental Analysis
NASDAQ:FIVE - Nasdaq - US33829M1018 - Common Stock - Currency: USD
FIVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. While FIVE has a great health rating, its profitability is only average at the moment. FIVE is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make FIVE suitable for growth investing!
1. Profitability
1.1 Basic Checks
FIVE had positive earnings in the past year.
In the past year FIVE had a positive cash flow from operations.
FIVE had positive earnings in each of the past 5 years.
Each year in the past 5 years FIVE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.41%, FIVE is doing good in the industry, outperforming 72.65% of the companies in the same industry.
With a decent Return On Equity value of 16.61%, FIVE is doing good in the industry, outperforming 74.36% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.85%, FIVE is doing good in the industry, outperforming 67.52% of the companies in the same industry.
FIVE had an Average Return On Invested Capital over the past 3 years of 11.55%. This is in line with the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 16.61% | ||
| ROIC | 7.85% |
ROA(3y)8.44%
ROA(5y)7.92%
ROE(3y)21.03%
ROE(5y)20.02%
ROIC(3y)11.55%
ROIC(5y)10.28%
1.3 Margins
FIVE's Profit Margin of 7.02% is amongst the best of the industry. FIVE outperforms 83.76% of its industry peers.
In the last couple of years the Profit Margin of FIVE has declined.
Looking at the Operating Margin, with a value of 9.04%, FIVE belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
FIVE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.18%, FIVE is in line with its industry, outperforming 46.15% of the companies in the same industry.
FIVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.04% | ||
| PM (TTM) | 7.02% | ||
| GM | 35.18% |
OM growth 3Y8.83%
OM growth 5Y-2.03%
PM growth 3Y10.39%
PM growth 5Y-2.48%
GM growth 3Y2.49%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
FIVE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FIVE has less shares outstanding than it did 1 year ago.
FIVE has less shares outstanding than it did 5 years ago.
FIVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.92 indicates that FIVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
FIVE has a better Altman-Z score (2.92) than 64.96% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.76
WACC10.27%
2.3 Liquidity
A Current Ratio of 1.38 indicates that FIVE should not have too much problems paying its short term obligations.
FIVE has a Current ratio (1.38) which is comparable to the rest of the industry.
A Quick Ratio of 0.45 indicates that FIVE may have some problems paying its short term obligations.
With a Quick ratio value of 0.45, FIVE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
FIVE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.64%.
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.
Looking at the last year, FIVE shows a quite strong growth in Revenue. The Revenue has grown by 14.32% in the last year.
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.
EPS 1Y (TTM)7.64%
EPS 3Y35.47%
EPS 5Y15.56%
EPS Q2Q%61.54%
Revenue 1Y (TTM)14.32%
Revenue growth 3Y21.96%
Revenue growth 5Y17.94%
Sales Q2Q%14.57%
3.2 Future
FIVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.19% yearly.
Based on estimates for the next years, FIVE will show a quite strong growth in Revenue. The Revenue will grow by 16.34% on average per year.
EPS Next Y-7.12%
EPS Next 2Y-1.39%
EPS Next 3Y3.11%
EPS Next 5Y25.19%
Revenue Next Year8.73%
Revenue Next 2Y9.53%
Revenue Next 3Y9.57%
Revenue Next 5Y16.34%
3.3 Evolution
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
FIVE is valuated correctly with a Price/Earnings ratio of 16.49.
70.94% of the companies in the same industry are more expensive than FIVE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FIVE to the average of the S&P500 Index (29.63), we can say FIVE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.30, the valuation of FIVE can be described as correct.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.68. FIVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FIVE is valued a bit cheaper than the industry average as 63.25% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.33 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
FIVE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-1.39%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
No dividends for FIVE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.92
-3.24 (-3.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.51%
Inst Owner Change0.05%
Ins Owners1.73%
Ins Owner Change2.75%
Market Cap4.73B
Analysts71.33
Price Target121.49 (41.4%)
Short Float %9.9%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)71.71%
Min EPS beat(2)-2.24%
Max EPS beat(2)145.65%
EPS beat(4)1
Avg EPS beat(4)32.99%
Min EPS beat(4)-6.03%
Max EPS beat(4)145.65%
EPS beat(8)3
Avg EPS beat(8)17.81%
EPS beat(12)4
Avg EPS beat(12)19.37%
EPS beat(16)8
Avg EPS beat(16)19.47%
Revenue beat(2)1
Avg Revenue beat(2)1.28%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)3.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)3.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.26%
Revenue beat(12)2
Avg Revenue beat(12)-1.43%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)-3.48%
PT rev (3m)14.31%
EPS NQ rev (1m)3.32%
EPS NQ rev (3m)-9.35%
EPS NY rev (1m)0.14%
EPS NY rev (3m)7.69%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 16.3 | ||
| P/S | 1.24 | ||
| P/FCF | 47.33 | ||
| P/OCF | 9.95 | ||
| P/B | 2.93 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)5.21
EY6.06%
EPS(NY)5.27
Fwd EY6.13%
FCF(TTM)1.82
FCFY2.11%
OCF(TTM)8.63
OCFY10.05%
SpS69.5
BVpS29.37
TBVpS29.37
PEG (NY)N/A
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 16.61% | ||
| ROCE | 10.44% | ||
| ROIC | 7.85% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 8.39% | ||
| OM | 9.04% | ||
| PM (TTM) | 7.02% | ||
| GM | 35.18% | ||
| FCFM | 2.61% |
ROA(3y)8.44%
ROA(5y)7.92%
ROE(3y)21.03%
ROE(5y)20.02%
ROIC(3y)11.55%
ROIC(5y)10.28%
ROICexc(3y)13.55%
ROICexc(5y)12.25%
ROICexgc(3y)13.55%
ROICexgc(5y)12.25%
ROCE(3y)15.37%
ROCE(5y)13.68%
ROICexcg growth 3Y8.42%
ROICexcg growth 5Y-22.66%
ROICexc growth 3Y8.42%
ROICexc growth 5Y-22.66%
OM growth 3Y8.83%
OM growth 5Y-2.03%
PM growth 3Y10.39%
PM growth 5Y-2.48%
GM growth 3Y2.49%
GM growth 5Y-0.25%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 235.8% | ||
| Cap/Sales | 9.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.12% | ||
| Profit Quality | 37.21% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.92 |
F-Score6
WACC10.27%
ROIC/WACC0.76
Cap/Depr(3y)278.25%
Cap/Depr(5y)301.93%
Cap/Sales(3y)9.24%
Cap/Sales(5y)9.88%
Profit Quality(3y)30.98%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.64%
EPS 3Y35.47%
EPS 5Y15.56%
EPS Q2Q%61.54%
EPS Next Y-7.12%
EPS Next 2Y-1.39%
EPS Next 3Y3.11%
EPS Next 5Y25.19%
Revenue 1Y (TTM)14.32%
Revenue growth 3Y21.96%
Revenue growth 5Y17.94%
Sales Q2Q%14.57%
Revenue Next Year8.73%
Revenue Next 2Y9.53%
Revenue Next 3Y9.57%
Revenue Next 5Y16.34%
EBIT growth 1Y0.75%
EBIT growth 3Y32.73%
EBIT growth 5Y15.55%
EBIT Next Year29.06%
EBIT Next 3Y16.34%
EBIT Next 5Y24.8%
FCF growth 1Y210.47%
FCF growth 3Y-0.25%
FCF growth 5Y18.51%
OCF growth 1Y200.15%
OCF growth 3Y10.93%
OCF growth 5Y22.1%