| Company name | Five Below Inc |
| Stock ticker | FIVE |
| Live stock price | [stckqut]FIVE[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $194.7 |
| Target stock price (averages with growth) | $201.24 |
| Target stock price (averages with no growth) | $152.98 |
| Target stock price (manual assumptions) | $194.03 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/five
Five Below, Inc., incorporated on January 30, 2002, is a specialty retailer offering a range of merchandise for teen and pre-teen customer. The Company offers an assortment of products, including select brands and licensed merchandise across a range of categories, including Style, Room, Sports, Tech, Create, Party, Candy and Now. Its product groups include leisure, fashion and home, and party and snack. Its Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts. Fashion and home includes items such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Party and snack includes items such as party and seasonal goods, greeting cards, candy and other snacks, and beverages. As of February 2, 2019, the Company had operated 750 stores throughout the Northeast, South, Midwest and West regions of the United States.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Five Below Inc as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Five Below Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $125.88
- Growth: 0.2
- Current EPS (TTM): $2.73
- P/E: 46
- Future EPS Calc: $6.79
- Future Stock Price Calc: $312.48
- Target stock price: $194.02
[/s2If]
I hope that this makes you a Confident Investor.