📊 FIVE Key Takeaways
Is Five Below, Inc. (FIVE) a Good Investment?
Five Below demonstrates strong fundamental growth with revenue expanding 22.9% YoY and EPS surging 40.7%, supported by exceptional cash generation (14.8% FCF margin) and a pristine balance sheet with $638.9M cash, zero debt, and 2.1x current ratio. However, low ROE (5.3%) and ROA (2.4%) reveal capital inefficiency, with operating expenses consuming a substantial portion of its strong 56.2% gross margin, warranting monitoring of operational leverage improvements.
Five Below shows strong fundamental momentum, with revenue up 22.9%, net income up 41.4%, and diluted EPS up 40.7%, indicating that growth is translating into materially higher profitability. The balance sheet is very healthy with no meaningful long-term debt, strong liquidity, and solid free cash flow generation, which supports continued store expansion and operating flexibility. Overall, the business appears fundamentally strong, though its relatively thin retail margins and execution dependence keep it short of the highest conviction tier.
Five Below, Inc. Key Strengths (FIVE)
- Strong topline growth of 22.9% YoY with aggressive EPS expansion of 40.7%
- Fortress balance sheet: $638.9M cash, zero debt, 2.1x current ratio, and 225.8x interest coverage
- Exceptional free cash flow generation of $190.0M (14.8% FCF margin) demonstrates quality of earnings
- Healthy gross margin of 56.2% indicates pricing power and efficient merchandising
- Positive operating cash flow of $227.2M well above net income of $123.1M
- Strong top-line and earnings growth with net income and EPS rising faster than revenue
- Healthy financial position supported by $723.70M in cash, a 2.01x current ratio, and effectively no leverage
- Good cash generation with $586.43M in operating cash flow and $411.69M in free cash flow
FIVE Stock Risks: Five Below, Inc. Investment Risks
- Depressed ROE (5.3%) and ROA (2.4%) signal capital inefficiency despite strong profitability metrics
- Operating margin of 12% significantly lags gross margin of 56.2%, suggesting elevated SG&A or operating expenses consuming margins
- High insider trading activity (27 Form 4 filings in 90 days) requires scrutiny to determine if executives are reducing holdings
- Retail sector exposure to consumer discretionary spending and potential economic slowdown
- Limited visibility on sustainability of 22.9% revenue growth rate in mature retail markets
- Retail margins remain relatively thin, leaving profitability sensitive to freight, labor, and merchandise cost pressure
- Growth quality depends on continued successful store expansion and sustained customer demand in a discretionary retail category
- Any slowdown in comparable sales or inventory missteps could pressure gross margin and earnings leverage
Key Metrics to Watch
- Operating margin expansion and SG&A efficiency improvements
- Return on equity and return on assets trajectory and capital deployment
- Free cash flow sustainability relative to revenue growth rate
- Same-store sales growth and store count expansion metrics
- Insider trading patterns to assess management confidence
- Gross margin trend
- Free cash flow conversion
Five Below, Inc. (FIVE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.10x current ratio provides a solid financial cushion.
FIVE Profit Margin, ROE & Profitability Analysis
FIVE vs Consumer Sector: How Five Below, Inc. Compares
How Five Below, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Five Below, Inc. Stock Overvalued? FIVE Valuation Analysis 2026
Based on fundamental analysis, Five Below, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Five Below, Inc. Balance Sheet: FIVE Debt, Cash & Liquidity
FIVE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Five Below, Inc.'s revenue has grown significantly by 67% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.41 reflects profitable operations.
FIVE Revenue Growth, EPS Growth & YoY Performance
FIVE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $970.5M | $41.1M | $0.75 |
| Q3 2025 | $843.7M | $1.7M | $0.03 |
| Q2 2025 | $830.1M | $31.5M | $0.60 |
| Q1 2025 | $811.9M | $31.5M | $0.57 |
| Q3 2024 | $736.4M | $1.7M | $0.03 |
| Q2 2024 | $759.0M | $31.5M | $0.60 |
| Q1 2024 | $726.2M | $31.5M | $0.57 |
| Q3 2023 | $645.0M | $14.6M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Five Below, Inc. Dividends, Buybacks & Capital Allocation
FIVE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Five Below, Inc. (CIK: 0001177609)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FIVE
What is the AI rating for FIVE?
Five Below, Inc. (FIVE) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FIVE's key strengths?
Claude: Strong topline growth of 22.9% YoY with aggressive EPS expansion of 40.7%. Fortress balance sheet: $638.9M cash, zero debt, 2.1x current ratio, and 225.8x interest coverage. ChatGPT: Strong top-line and earnings growth with net income and EPS rising faster than revenue. Healthy financial position supported by $723.70M in cash, a 2.01x current ratio, and effectively no leverage.
What are the risks of investing in FIVE?
Claude: Depressed ROE (5.3%) and ROA (2.4%) signal capital inefficiency despite strong profitability metrics. Operating margin of 12% significantly lags gross margin of 56.2%, suggesting elevated SG&A or operating expenses consuming margins. ChatGPT: Retail margins remain relatively thin, leaving profitability sensitive to freight, labor, and merchandise cost pressure. Growth quality depends on continued successful store expansion and sustained customer demand in a discretionary retail category.
What is FIVE's revenue and growth?
Five Below, Inc. reported revenue of $1.3B.
Does FIVE pay dividends?
Five Below, Inc. does not currently pay dividends.
Where can I find FIVE SEC filings?
Official SEC filings for Five Below, Inc. (CIK: 0001177609) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FIVE's EPS?
Five Below, Inc. has a diluted EPS of $2.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FIVE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Five Below, Inc. has a A grade with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FIVE stock overvalued or undervalued?
Valuation metrics for FIVE: ROE of 5.3% (sector avg: 18%), net margin of 9.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is FIVE's AI grade for 2026?
Our dual AI analysis gives Five Below, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FIVE's free cash flow?
Five Below, Inc.'s operating cash flow is $227.2M, with capital expenditures of $37.2M. FCF margin is 14.8%.
How does FIVE compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.6% (avg: 8%), ROE 5.3% (avg: 18%), current ratio 2.10 (avg: 1.5).