A Business at a Glance
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FIVE BELOW, INC
FIVE
$11.3B
Mkt Cap
$203.19
+0.93%
FIVE BELOW, INC (FIVE) has a current P/E ratio of 31.9, compared to its historical median P/E of 36.4. The stock is currently considered Fair based on its historical valuation range.
FIVE BELOW, INC (FIVE) has a 5-year average return on invested capital (ROIC) of 27.4%. This indicates strong capital allocation and a potential competitive advantage.
FIVE BELOW, INC (FIVE) has a market capitalization of $11.2B. It is classified as a large-cap stock.
FIVE BELOW, INC (FIVE) does not currently pay a regular dividend.
Based on historical P/E analysis, FIVE BELOW, INC (FIVE) appears fair. The current P/E of 31.9 is 12% below its historical median of 36.4. The estimated fair value CAGR (P/E method) is 8.5%.
FIVE BELOW, INC (FIVE) operates in the Retail-Variety Stores industry, within the Consumer Defensive sector.
FIVE BELOW, INC (FIVE) reported annual revenue of $4.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Five Below is a high-growth value retailer offering trend-right, dynamic merchandise primarily priced at $5 and below, targeting tweens, teens, and beyond with an assortment spanning eight merchandising worlds: Style, Room, Sports, Tech, Create, Party, Candy, and New & Now. The company operates a store-based retail model supplemented by e-commerce through its fivebelow.com website and mobile app, offering home delivery and buy-online-pickup-in-store options, with all e-commerce sales included in comparable sales metrics. Five Below locates its approximately 9,500-square-foot stores in power, community, and lifestyle shopping centers across urban, suburban, and semi-rural markets, having grown from 1,340 stores at the end of fiscal 2022 to 1,771 stores at the end of fiscal 2024, with plans to open approximately 150 new stores in fiscal 2025 and a long-term opportunity to reach more than 3,500 locations. The company's business model emphasizes a customer-centric, experience-first approach with maniacal focus on its target demographic, delivering curated product stories and newness through connected customer journeys spanning social media to in-store experiences, supported by strategic pricing actions and inventory management. Five Below generates revenue through merchandise sales across its store network and digital channels, with unit economics characterized by strong comparable sales growth, fixed cost leverage on higher sales volumes, and gross margin expansion driven by merchandise margins, pricing strategies, and distribution center efficiencies, while managing supply chain costs including tariff impacts and transportation expenses.
【Strong momentum with macro caution】 Management remains highly convicted in Five Below's ability to generate durable, sustainable growth, evidenced by raising full-year guidance following first-quarter outperformance with 23% comparable sales growth and strong new store productivity. Despite acknowledging a challenging and increasingly cautious macro environment with geopolitical uncertainties, the company has maintained its back-half comparable sales assumptions unchanged, reflecting confidence in execution of its customer-centric strategy centered on target customer focus, connected customer journeys from social to in-store, and cross-functional collaboration. The company expects operating margin expansion driven by gross margin gains from merchandise margins, fixed cost leverage, and lower shrink accruals, partially offset by higher supply chain and fuel costs on outbound transportation and increased marketing investments in social media channels. Management is focused on amplifying product newness and curated assortment storytelling, leveraging viral social trends and creator content engagement, while continuing to invest in technology infrastructure and store labor to support the next phase of growth and omnichannel capabilities.
| Metric | Target | Period |
|---|---|---|
| Total sales | $5.4 billion–$5.48 billion | Full year fiscal 2026 |
| Comparable sales growth | 6% to 8% | Full year fiscal 2026 |
| Adjusted operating margin | 11.6% | Full year fiscal 2026 |
| Adjusted diluted earnings per share | $8.85 | Full year fiscal 2026 |
| Capital expenditures | $230 million–$250 million | Full year fiscal 2026 |
| Q2 total sales | $1.18 billion–$1.2 billion | Q2 fiscal 2026 |
| Q2 comparable sales growth | 7% to 9% | Q2 fiscal 2026 |
| Q2 adjusted diluted earnings per share | $1.23 | Q2 fiscal 2026 |
Total sales (Full year fiscal 2026): “Full-year sales are expected to be in the range of $5.4 billion-$5.48 billion, an increase of 14% at the midpoint versus last year.”
Comparable sales growth (Full year fiscal 2026): “Comparable sales growth is expected to be between 6% and 8%, or nearly 20% growth at the midpoint on a two-year stack basis.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 4.4B | 4.8B | 3.9B | 3.6B | 3.1B | 2.8B |
| Net Income | 313M | 359M | 254M | 301M | 262M | 279M |
| EPS | $5.67 | $6.47 | $4.60 | $5.41 | $4.69 | $4.95 |
| Free Cash Flow | 553M | 412M | 107M | 165M | 63M | 40M |
| ROIC | 24.0% | 24.9% | 18.1% | 26.9% | 25.7% | 41.5% |
| Gross Margin | - | 36.0% | 34.9% | 35.8% | 35.6% | 36.2% |
| Debt/Equity | 0.00 | 1.25 | 1.40 | 1.44 | 1.44 | 1.57 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 401M | 457M | 324M | 386M | 345M | 380M |
| Operating Margin | 9.2% | 9.6% | 8.4% | 10.8% | 11.2% | 13.3% |
| ROE | 16.4% | 17.9% | 14.9% | 20.4% | 21.1% | 27.9% |
| Shares Outstanding | 55M | 55M | 55M | 56M | 56M | 56M |
FIVE BELOW, INC passes 3 of 9 quality checks, indicating weak fundamentals.
FIVE BELOW, INC trades at 31.9x trailing earnings, compared to its 15-year median P/E of 36.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 30.2x vs a median of 49.5x. The company's 5-year average ROIC is 27.4% with a gross margin of 35.7%. At current prices, the estimated annualized return to fair value is +16.9%.
FIVE BELOW, INC (FIVE) has a net profit margin of 7.5%. This is a modest margin.
FIVE BELOW, INC (FIVE) generated $412 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
FIVE BELOW, INC (FIVE) has a debt-to-equity ratio of 1.25. This indicates moderate leverage.
FIVE BELOW, INC (FIVE) reported earnings per share (EPS) of $6.47 in its most recent fiscal year.
FIVE BELOW, INC (FIVE) has a return on equity (ROE) of 17.9%. This indicates the company generates strong returns for shareholders.
FIVE BELOW, INC (FIVE) has a 5-year average gross margin of 35.7%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for FIVE BELOW, INC (FIVE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
FIVE BELOW, INC (FIVE) has a book value per share of $39.57, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management remains highly convicted in Five Below's ability to generate durable, sustainable growth, evidenced by raising full-year guidance following first-quarter outperformance with 23% comparable sales growth and strong new store productivity. Despite acknowledging a challenging and increasingly cautious macro environment with geopolitical uncertainties, the company has maintained its back-half comparable sales assumptions unchanged, reflecting confidence in execution of its customer-centric strategy centered on target customer focus, connected customer journeys from social to in-store, and cross-functional collaboration. The company expects operating margin expansion driven by gross margin gains from merchandise margins, fixed cost leverage, and lower shrink accruals, partially offset by higher supply chain and fuel costs on outbound transportation and increased marketing investments in social media channels. Management is focused on amplifying product newness and curated assortment storytelling, leveraging viral social trends and creator content engagement, while continuing to invest in technology infrastructure and store labor to support the next phase of growth and omnichannel capabilities.
Based on recent SEC filings and earnings calls, FIVE BELOW, INC (FIVE) has provided the following forward guidance: Total sales: $5.4 billion–$5.48 billion (Full year fiscal 2026); Comparable sales growth: 6% to 8% (Full year fiscal 2026); Adjusted operating margin: 11.6% (Full year fiscal 2026); Adjusted diluted earnings per share: $8.85 (Full year fiscal 2026); Capital expenditures: $230 million–$250 million (Full year fiscal 2026), plus 3 additional metrics.
Adjusted operating margin (Full year fiscal 2026): “Adjusted operating margin is expected to increase 170 basis points to 11.6% at the midpoint, driven by gross margin expansion.”
Adjusted diluted earnings per share (Full year fiscal 2026): “Adjusted diluted earnings per share is expected to be $8.85 at the midpoint on 55.7 million shares outstanding or growth of 33% versus 2025.”
Capital expenditures (Full year fiscal 2026): “Capital expenditures are still expected to be between $230 and $250 million, excluding the impact of tenant allowances, which reflects approximately 150 net new store openings and increased investments in technology and infrastructure.”
Q2 total sales (Q2 fiscal 2026): “We now expect total sales in the range of $1.18 to $1.2 billion, or growth of 16% at the midpoint versus last year's Q2”
Q2 comparable sales growth (Q2 fiscal 2026): “with comparable sales growth between 7% and 9%”
Q2 adjusted diluted earnings per share (Q2 fiscal 2026): “Adjusted diluted earnings per share at the midpoint is expected to be $1.23 compared to $0.81 last year.”