Is Five Below Stock a Good Investment?
Five Below Investment Advice | FIVE |
- Examine Five Below's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Five Below's leadership team and their track record. Good management can help Five Below navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Other Specialty Retail space and any emerging trends that could impact Five Below's business and its evolving consumer preferences.
- Compare Five Below's performance and market position to its competitors. Analyze how Five Below is positioned in terms of product offerings, innovation, and market share.
- Check if Five Below pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Five Below's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Five Below stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Five Below is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Moves slightly opposite to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Five Below Stock
Researching Five Below's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The book value of Five Below was currently reported as 29.23. The company has Price/Earnings To Growth (PEG) ratio of 0.72. Five Below recorded earning per share (EPS) of 5.07. The entity had not issued any dividends in recent years.
To determine if Five Below is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Five Below's research are outlined below:
| Five Below had very high historical volatility over the last 90 days | |
| Five Below is unlikely to experience financial distress in the next 2 years | |
| Five Below has a strong financial position based on the latest SEC filings | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Five Below, Inc. AnnouncesThird Quarter Fiscal 2024 Earnings Re |
Five Below uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Five Below. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Five Below's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of March 2024 Upcoming Quarterly Report | View | |
| 6th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 20th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Five Below's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Five Below's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-12-01 | 2016-10-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2015-12-03 | 2015-10-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2015-06-03 | 2015-04-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2014-06-04 | 2014-04-30 | 0.06 | 0.07 | 0.01 | 16 | ||
2013-12-05 | 2013-10-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2013-06-12 | 2013-04-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2016-06-02 | 2016-04-30 | 0.1 | 0.12 | 0.02 | 20 | ||
2013-09-09 | 2013-07-31 | 0.09 | 0.11 | 0.02 | 22 |
Know Five Below's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Five Below is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Five Below backward and forwards among themselves. Five Below's institutional investor refers to the entity that pools money to purchase Five Below's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-06-30 | 968 K | Point72 Asset Management, L.p. | 2024-06-30 | 908.4 K | Fidelity International Ltd | 2024-06-30 | 905 K | Atreides Management, Lp | 2024-09-30 | 777 K | Jpmorgan Chase & Co | 2024-06-30 | 759.4 K | Giverny Capital Inc. | 2024-09-30 | 725.2 K | Ameriprise Financial Inc | 2024-06-30 | 718.1 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 615.8 K | Charles Schwab Investment Management Inc | 2024-09-30 | 614.3 K | Blackrock Inc | 2024-06-30 | 5.1 M | Vanguard Group Inc | 2024-09-30 | 5 M |
Five Below's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.57 B.Market Cap |
|
Five Below's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.08 | 0.16 | |
| Return On Capital Employed | 0.12 | 0.36 | |
| Return On Assets | 0.08 | 0.16 | |
| Return On Equity | 0.19 | 0.28 |
Determining Five Below's profitability involves analyzing its financial statements and using various financial metrics to determine if Five Below is a good buy. For example, gross profit margin measures Five Below's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Five Below's profitability and make more informed investment decisions.
Please note, the presentation of Five Below's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Five Below's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Five Below's management manipulating its earnings.
Evaluate Five Below's management efficiency
Five Below has return on total asset (ROA) of 0.0599 % which means that it generated a profit of $0.0599 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1846 %, meaning that it created $0.1846 on every $100 dollars invested by stockholders. Five Below's management efficiency ratios could be used to measure how well Five Below manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.16. The current year's Return On Capital Employed is expected to grow to 0.36. At present, Five Below's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 17.8 M, whereas Intangibles To Total Assets are forecasted to decline to (11.86).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 28.56 | 3.21 | |
| Tangible Book Value Per Share | 28.56 | 3.21 | |
| Enterprise Value Over EBITDA | 22.48 | 18.50 | |
| Price Book Value Ratio | 6.34 | 10.37 | |
| Enterprise Value Multiple | 22.48 | 18.50 | |
| Price Fair Value | 6.34 | 10.37 | |
| Enterprise Value | 11.6 B | 1.7 B |
The leadership approach at Five Below's fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.
Beta 1.203 |
Basic technical analysis of Five Stock
As of the 21st of November, Five Below shows the Mean Deviation of 2.5, coefficient of variation of 1998.16, and Downside Deviation of 2.99. Five Below technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Five Below information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Five Below is priced favorably, providing market reflects its regular price of 83.49 per share. Given that Five Below has jensen alpha of 0.1971, we urge you to verify Five Below's prevailing market performance to make sure the company can sustain itself at a future point.Five Below's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Five Below insiders, such as employees or executives, is commonly permitted as long as it does not rely on Five Below's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Five Below insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Five Below's Outstanding Corporate Bonds
Five Below issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Five Below uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Five bonds can be classified according to their maturity, which is the date when Five Below has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Five Below's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Five Below's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0453 | |||
| Market Risk Adjusted Performance | (0.26) | |||
| Mean Deviation | 2.5 | |||
| Semi Deviation | 2.88 | |||
| Downside Deviation | 2.99 | |||
| Coefficient Of Variation | 1998.16 | |||
| Standard Deviation | 3.19 | |||
| Variance | 10.17 | |||
| Information Ratio | 0.0201 | |||
| Jensen Alpha | 0.1971 | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | 0.0215 | |||
| Treynor Ratio | (0.27) | |||
| Maximum Drawdown | 16.58 | |||
| Value At Risk | (4.34) | |||
| Potential Upside | 5.04 | |||
| Downside Variance | 8.95 | |||
| Semi Variance | 8.27 | |||
| Expected Short fall | (2.82) | |||
| Skewness | (0.03) | |||
| Kurtosis | 0.7822 |
| Risk Adjusted Performance | 0.0453 | |||
| Market Risk Adjusted Performance | (0.26) | |||
| Mean Deviation | 2.5 | |||
| Semi Deviation | 2.88 | |||
| Downside Deviation | 2.99 | |||
| Coefficient Of Variation | 1998.16 | |||
| Standard Deviation | 3.19 | |||
| Variance | 10.17 | |||
| Information Ratio | 0.0201 | |||
| Jensen Alpha | 0.1971 | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | 0.0215 | |||
| Treynor Ratio | (0.27) | |||
| Maximum Drawdown | 16.58 | |||
| Value At Risk | (4.34) | |||
| Potential Upside | 5.04 | |||
| Downside Variance | 8.95 | |||
| Semi Variance | 8.27 | |||
| Expected Short fall | (2.82) | |||
| Skewness | (0.03) | |||
| Kurtosis | 0.7822 |
Consider Five Below's intraday indicators
Five Below intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Five Below stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Five Below Corporate Filings
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
F4 | 6th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 18th of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 29th of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Five Stock media impact
Far too much social signal, news, headlines, and media speculation about Five Below that are available to investors today. That information is available publicly through Five media outlets and privately through word of mouth or via Five internal channels. However, regardless of the origin, that massive amount of Five data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Five Below news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Five Below relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Five Below's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Five Below alpha.
Five Below Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Five Below can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Five Below Historical Investor Sentiment
Investor biases related to Five Below's public news can be used to forecast risks associated with an investment in Five. The trend in average sentiment can be used to explain how an investor holding Five can time the market purely based on public headlines and social activities around Five Below. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Five Below's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Five Below and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Five Below news discussions. The higher the estimate score, the more favorable the investor's outlook on Five Below.
Five Below Corporate Management
| Michael Romanko | Executive VP of Merchandising | Profile | |
| Christiane Pelz | Vice Relations | Profile | |
| Ronald Masciantonio | Secretary | Profile | |
| Amit Jhunjhunwala | Chief Officer | Profile | |
| Ronald JD | Secretary | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Five Below. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. For information on how to trade Five Stock refer to our How to Trade Five Stock guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Other Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Five Below. If investors know Five will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Five Below listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Earnings Share 5.07 | Revenue Per Share 67.314 | Quarterly Revenue Growth 0.094 | Return On Assets 0.0599 |
The market value of Five Below is measured differently than its book value, which is the value of Five that is recorded on the company's balance sheet. Investors also form their own opinion of Five Below's value that differs from its market value or its book value, called intrinsic value, which is Five Below's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Five Below's market value can be influenced by many factors that don't directly affect Five Below's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Five Below's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Five Below is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Five Below's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.