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 Poor
EBIT growth Good
Price growth Good
R&D growth Poor
Income growth Good
Assets growth Good
Return on Assets growth Poor
Income / Rev growth Fair
TWCA Plus Good
Standard TWCA Good
Weighted ann. stock price increase Fair

 

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $145.3
Target stock price (averages with growth) $134.71
Target stock price (averages with no growth) $119.51
Target stock price (manual assumptions) $113.35

 

The following company description is from Reuters: https://finance.yahoo.com/quote/five/profile?p=five

Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and T-shirts, as well as nail polishes, lip glosses, fragrances, and branded cosmetics; and items used to complete and personalize living space, including glitter lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, and related items, as well as provides storage options for the customers room. The company also provides sport balls; team sports merchandise and fitness accessories, such as hand weights, jump ropes, and gym balls; games, including name brand board games, puzzles, collectibles, and toys covering remote control; and pool, beach, and outdoor toys, as well as games and accessories. In addition, it offers accessories, such as cases, chargers, headphones, and other related items for cell phones, tablets, audio, and computers; books, video games, and DVDs; craft activity kits; arts and crafts supplies that consist of crayons, markers, and stickers; and trend-right items for school comprising backpacks, fashion notebooks and journals, novelty pens and pencils, locker accessories, and everyday name brand items. Further, the company provides party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise products; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food; chilled drinks through coolers; and seasonally-specific items used to celebrate and decorate for events. It primarily serves tween and teen customers. As of February 1, 2020, Five Below, Inc. operated 900 stores in 36 states. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was founded in 2002 and is headquartered in Philadelphia, Pennsylvania.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Five Below Inc as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

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: $107.34
  • Growth: 0.160549836980051
  • Current EPS (TTM): $2.84
  • P/E: 30.5324473047083
  • Future EPS Calc: $5.97
  • Future Stock Price Calc: $182.55
  • Target stock price: $113.35

[/s2If]
I hope that this makes you a Confident Investor.

 

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.