FIVE BELOW (FIVE)
US33829M1018 - Common Stock
FIVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. FIVE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FIVE is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make FIVE a good candidate 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.
In the past 5 years FIVE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.01%, FIVE is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
The Return On Equity of FIVE (17.49%) is better than 76.86% of its industry peers.
FIVE's Return On Invested Capital of 8.18% is fine compared to the rest of the industry. FIVE outperforms 70.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FIVE is in line with the industry average of 12.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 17.49% | ||
| ROIC | 8.18% |
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
Looking at the Profit Margin, with a value of 7.57%, FIVE belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
In the last couple of years the Profit Margin of FIVE has declined.
FIVE has a better Operating Margin (9.75%) than 83.47% of its industry peers.
FIVE's Operating Margin has declined in the last couple of years.
FIVE has a Gross Margin of 35.25%. This is comparable to the rest of the industry: FIVE outperforms 46.28% of its industry peers.
FIVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.75% | ||
| PM (TTM) | 7.57% | ||
| GM | 35.25% |
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.
The number of shares outstanding for FIVE has been reduced compared to 1 year ago.
Compared to 5 years ago, FIVE has less shares outstanding
There is no outstanding debt for FIVE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
FIVE has an Altman-Z score of 3.00. This indicates that FIVE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.00, FIVE is in the better half of the industry, outperforming 67.77% of the companies in the same industry.
There is no outstanding debt for FIVE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3 |
ROIC/WACC0.86
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.63 indicates that FIVE should not have too much problems paying its short term obligations.
FIVE has a better Current ratio (1.63) than 67.77% of its industry peers.
FIVE has a Quick Ratio of 1.63. This is a bad value and indicates that FIVE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FIVE (0.70) is better than 62.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.70% over the past year.
FIVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.56% yearly.
FIVE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.24%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
EPS 1Y (TTM)3.7%
EPS 3Y35.47%
EPS 5Y15.56%
EPS Q2Q%-35.71%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y21.96%
Revenue growth 5Y17.94%
Sales Q2Q%9.37%
3.2 Future
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.
EPS Next Y-13.75%
EPS Next 2Y-4.38%
EPS Next 3Y1.65%
EPS Next 5Y25.19%
Revenue Next Year6.12%
Revenue Next 2Y7.89%
Revenue Next 3Y8.93%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.53, the valuation of FIVE can be described as correct.
FIVE's Price/Earnings ratio is a bit cheaper when compared to the industry. FIVE is cheaper than 70.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. FIVE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.85, the valuation of FIVE can be described as correct.
Based on the Price/Forward Earnings ratio, FIVE is valued a bit cheaper than 64.46% of the companies in the same industry.
FIVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FIVE is valued a bit cheaper than the industry average as 68.59% of the companies are valued more expensively.
FIVE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 256.66 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
The decent profitability rating of FIVE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-4.38%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
FIVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FIVE BELOW
NASDAQ:FIVE (11/21/2024, 8:00:00 PM)
After market: 83.52 +0.03 (+0.04%)83.49
+0.39 (+0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 16.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 17.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.75% | ||
| PM (TTM) | 7.57% | ||
| GM | 35.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.7%
EPS 3Y35.47%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.24%
Revenue growth 3Y21.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y