Quality Investor

Five Below, Inc.

Rank #203Hypergrowth

FIVE · Nasdaq · Consumer Cyclical

Five Below, Inc. (FIVE) — Rank #203 by gross profitability (GP/assets 0.32) · ROE 14.5% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001177609 · all metrics point-in-time as of the filing date.

About

Five Below, Inc. operates as a specialty value retailer in the United States.

Show more

It offers assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, gum, and snack food products, as well as sells chilled drinks through coolers; socks, jewelry, hair accessories, cozy loungewear, and t-shirts; personal care essentials, skincare, fragrance, and branded cosmetics; and party goods, decorations, gag gifts, greeting cards, and every day and special occasion merchandise products. The company also provides personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options; assortment of craft activity kits with various arts and crafts supplies, such as markers, paint, canvas, compounds, slime, beads, and stickers; and supplies craft activities and school products. In addition, it offers cell phone cables and chargers, power banks, phone cases and accessories, screen protectors, auto phone accessories, and computer and tablet accessories, as well as earbuds, headphones, and speakers. Further, the company provides assortment of sport balls, sports accessories and fitness products, including hand weights and yoga mats; toys, including brand name board games, puzzles, action figures, construction sets, remote control, collectibles, novelty toys, and plush products; and outdoor toys for the pool and beach. Additionally, it offers seasonally relevant items to use for the occasions and milestones, such as Holiday, Easter, Halloween, Summer, and Back to School. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc.

was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.

Industry
Specialty Retail
Sector
Consumer Cyclical
State
PA
Filer Category
Large accelerated filer
Fiscal Year End
January 30

Price History

FIVE+26.4% · +4.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$13.14B

P/E (annual)

36.9

P/S (annual)

2.8

P/B

5.3

P/OCF (annual)

22.4

Shareholder Yield

-0.5%

Employees

7,800

Industry

Specialty Retail

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.32
Return on equity
14.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.13
Current ratio
2.22×
Net cash
$1.20B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.7%

Growth

2/2 pass
Revenue growth
22.9%
Piotroski F-Score
7 / 9
Share dilution
0.5%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

14.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.5% — per-share value needs a total required return of 14.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 12.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.5%

r = 10% (base)

14.2%

r = 12%

18.2%

Net debt / market cap: -9.1%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $411.7M3Y mean FCF: $227.6M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

36.3xExpensive
16.5xmed 32.4x85.1x

P / S

Price / revenue per share

2.7xFair
1.1xmed 2.7x5.4x

P / B

Price / book value per share

5.9xFair
2.3xmed 6.2x11.9x

P / GP

Price / gross profit per share

7.6xFair
3.1xmed 7.6x16.1x

P / FCF

Price / free cash flow per share

31.7xCheap
29.2xmed 50.7x226.9x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.32

Primary signal (Novy-Marx).

6th of 6 SIC 53 peers

Return on equity

14.5%

Gross margin

36.0%

4th of 6 SIC 53 peers

Revenue growth (YoY)

22.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

15.7%

Revenue CAGR (5Y)

19.4%

Earnings CAGR (3Y)

11.1%

FCF CAGR (3Y)

87.0%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.13

5th of 6 SIC 53 peers (best = lowest)

Current ratio

2.22×

4th of 6 SIC 53 peers

Quick ratio

Net cash

$1.20B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$411.69M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.15

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Hypergrowth
Op. Leverage