FIVE BELOW (FIVE) Stock Fundamental Analysis
NASDAQ:FIVE - Nasdaq - US33829M1018 - Common Stock - Currency: USD
Overall FIVE gets a fundamental rating of 5 out of 10. We evaluated FIVE against 121 industry peers in the Specialty Retail industry. FIVE has an excellent financial health rating, but there are some minor concerns on its profitability. FIVE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FIVE was profitable.
FIVE had a positive operating cash flow in the past year.
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
FIVE has a Return On Assets of 5.91%. This is in the better half of the industry: FIVE outperforms 73.55% of its industry peers.
With a decent Return On Equity value of 14.17%, FIVE is doing good in the industry, outperforming 71.90% of the companies in the same industry.
FIVE has a better Return On Invested Capital (7.07%) than 66.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FIVE is below the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 14.17% | ||
| ROIC | 7.07% |
ROA(3y)7.16%
ROA(5y)7.3%
ROE(3y)17.41%
ROE(5y)18.22%
ROIC(3y)8.48%
ROIC(5y)9.59%
1.3 Margins
FIVE has a better Profit Margin (6.52%) than 81.82% of its industry peers.
FIVE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.39%, FIVE is doing good in the industry, outperforming 79.34% of the companies in the same industry.
In the last couple of years the Operating Margin of FIVE has declined.
FIVE has a Gross Margin of 35.02%. This is comparable to the rest of the industry: FIVE outperforms 46.28% of its industry peers.
In the last couple of years the Gross Margin of FIVE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 6.52% | ||
| GM | 35.02% |
OM growth 3Y-21.23%
OM growth 5Y-6.62%
PM growth 3Y-12.57%
PM growth 5Y-7.15%
GM growth 3Y-1.19%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FIVE is destroying value.
FIVE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FIVE has been reduced compared to 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 3.50 indicates that FIVE is not in any danger for bankruptcy at the moment.
FIVE has a better Altman-Z score (3.50) than 76.03% of its industry peers.
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 | 3.5 |
ROIC/WACC0.74
WACC9.55%
2.3 Liquidity
FIVE has a Current Ratio of 1.71. This is a normal value and indicates that FIVE is financially healthy and should not expect problems in meeting its short term obligations.
FIVE has a Current ratio of 1.71. This is in the better half of the industry: FIVE outperforms 73.55% of its industry peers.
FIVE has a Quick Ratio of 1.71. This is a bad value and indicates that FIVE is not financially healthy enough and could expect problems in meeting its short term obligations.
FIVE has a better Quick ratio (0.89) than 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
FIVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.93%.
Measured over the past years, FIVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.07% on average per year.
Looking at the last year, FIVE shows a quite strong growth in Revenue. The Revenue has grown by 10.70% in the last year.
FIVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.99% yearly.
EPS 1Y (TTM)-0.93%
EPS 3Y0.6%
EPS 5Y10.07%
EPS Q2Q%43.33%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y10.82%
Revenue growth 5Y15.99%
Sales Q2Q%19.54%
3.2 Future
FIVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.76% yearly.
Based on estimates for the next years, FIVE will show a quite strong growth in Revenue. The Revenue will grow by 16.48% on average per year.
EPS Next Y-5.02%
EPS Next 2Y2.78%
EPS Next 3Y6.41%
EPS Next 5Y30.76%
Revenue Next Year14.2%
Revenue Next 2Y12.11%
Revenue Next 3Y11.3%
Revenue Next 5Y16.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.43, the valuation of FIVE can be described as rather expensive.
64.46% of the companies in the same industry are more expensive than FIVE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. FIVE is around the same levels.
FIVE is valuated rather expensively with a Price/Forward Earnings ratio of 24.32.
FIVE's Price/Forward Earnings ratio is in line with the industry average.
FIVE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 24.32 |
4.2 Price Multiples
FIVE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FIVE is valued a bit cheaper than the industry average as 66.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.95 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
The decent profitability rating of FIVE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y2.78%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
FIVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
129.46
-0.72 (-0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.17%
Inst Owner Change0.01%
Ins Owners0.95%
Ins Owner Change4.82%
Market Cap7.13B
Analysts72.14
Price Target133.05 (2.77%)
Short Float %6.18%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)1.27%
Max EPS beat(2)3.28%
EPS beat(4)3
Avg EPS beat(4)36.99%
Min EPS beat(4)-2.24%
Max EPS beat(4)145.65%
EPS beat(8)4
Avg EPS beat(8)18.01%
EPS beat(12)6
Avg EPS beat(12)19.93%
EPS beat(16)8
Avg EPS beat(16)17.62%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)3.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.08%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)20.41%
PT rev (3m)29.79%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)24.9%
EPS NY rev (1m)1.18%
EPS NY rev (3m)3.12%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)5.64%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 24.32 | ||
| P/S | 1.77 | ||
| P/FCF | 26.95 | ||
| P/OCF | 13.28 | ||
| P/B | 3.84 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)5.3
EY4.09%
EPS(NY)5.32
Fwd EY4.11%
FCF(TTM)4.8
FCFY3.71%
OCF(TTM)9.75
OCFY7.53%
SpS73.29
BVpS33.75
TBVpS33.75
PEG (NY)N/A
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 14.17% | ||
| ROCE | 9.43% | ||
| ROIC | 7.07% | ||
| ROICexc | 8.55% | ||
| ROICexgc | 8.55% | ||
| OM | 8.39% | ||
| PM (TTM) | 6.52% | ||
| GM | 35.02% | ||
| FCFM | 6.56% |
ROA(3y)7.16%
ROA(5y)7.3%
ROE(3y)17.41%
ROE(5y)18.22%
ROIC(3y)8.48%
ROIC(5y)9.59%
ROICexc(3y)9.94%
ROICexc(5y)11.39%
ROICexgc(3y)9.94%
ROICexgc(5y)11.39%
ROCE(3y)11.31%
ROCE(5y)12.79%
ROICexcg growth 3Y-24.82%
ROICexcg growth 5Y-8.07%
ROICexc growth 3Y-24.82%
ROICexc growth 5Y-8.07%
OM growth 3Y-21.23%
OM growth 5Y-6.62%
PM growth 3Y-12.57%
PM growth 5Y-7.15%
GM growth 3Y-1.19%
GM growth 5Y-0.89%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.01% | ||
| Cap/Sales | 6.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.18% | ||
| Profit Quality | 100.47% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.5 |
F-Score6
WACC9.55%
ROIC/WACC0.74
Cap/Depr(3y)229.46%
Cap/Depr(5y)263.43%
Cap/Sales(3y)8.65%
Cap/Sales(5y)9.26%
Profit Quality(3y)40.25%
Profit Quality(5y)53.87%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.93%
EPS 3Y0.6%
EPS 5Y10.07%
EPS Q2Q%43.33%
EPS Next Y-5.02%
EPS Next 2Y2.78%
EPS Next 3Y6.41%
EPS Next 5Y30.76%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y10.82%
Revenue growth 5Y15.99%
Sales Q2Q%19.54%
Revenue Next Year14.2%
Revenue Next 2Y12.11%
Revenue Next 3Y11.3%
Revenue Next 5Y16.48%
EBIT growth 1Y-10.76%
EBIT growth 3Y-12.71%
EBIT growth 5Y8.3%
EBIT Next Year49.6%
EBIT Next 3Y22.15%
EBIT Next 5Y30.4%
FCF growth 1Y122.11%
FCF growth 3Y39.02%
FCF growth 5YN/A
OCF growth 1Y49.92%
OCF growth 3Y9.51%
OCF growth 5Y18.16%