📊 FIVE Key Takeaways
Is FIVE a Good Investment? Thesis Analysis
Five Below demonstrates exceptional fundamental strength with robust revenue growth of 22.9% YoY and outstanding net income expansion of 41.4% YoY, indicating strong operational leverage and execution. The company maintains fortress-like financial health with zero long-term debt, strong liquidity (2.01x current ratio), excellent free cash flow generation ($411.7M, 8.6% margin), and solid profitability metrics across all levels.
Why Buy FIVE? Key Strengths
- Superior revenue growth at 22.9% YoY coupled with accelerating net income growth of 41.4% YoY demonstrates strong operational leverage
- Fortress balance sheet with zero long-term debt, $723.7M cash position, and 2.01x current ratio provides significant financial flexibility
- Strong free cash flow generation of $411.7M with healthy 8.6% FCF margin and 669.7x interest coverage ratio
- Solid profitability with 15.2% gross margin, 9.6% operating margin, and 7.5% net margin showing healthy pricing power
- Respectable return metrics with 16.4% ROE and 7.3% ROA indicate efficient capital deployment
- High insider activity with 28 Form 4 filings in last 90 days suggests management confidence
FIVE Investment Risks to Consider
- Retail sector cyclicality and consumer discretionary spending sensitivity to macroeconomic downturns
- Modest operating margin of 9.6% provides limited cushion for cost pressures or competitive intensity
- Capital intensity with $174.7M annual capex requirements suggests ongoing investment needs for growth
- Rising inventory risk in variety retail if consumer demand softens unexpectedly
Key Metrics to Watch
- Revenue growth trajectory and comp store sales trends to confirm sustainability
- Gross margin stability amid inflationary pressures and sourcing costs
- Free cash flow conversion and capital efficiency of new store investments
- Operating margin expansion as revenue grows and operating leverage increases
FIVE Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.01x current ratio provides a solid financial cushion.
FIVE Profitability Ratios
FIVE vs Consumer Sector
How FIVE BELOW, INC compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FIVE Overvalued or Undervalued?
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 Balance Sheet & Liquidity
FIVE 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
FIVE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $668.9M | $32.7M | $0.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FIVE Capital Allocation
FIVE SEC 10-K & 10-Q Filing 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 an AI rating of STRONG BUY with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FIVE's key strengths?
Claude: Superior revenue growth at 22.9% YoY coupled with accelerating net income growth of 41.4% YoY demonstrates strong operational leverage. Fortress balance sheet with zero long-term debt, $723.7M cash position, and 2.01x current ratio provides significant financial flexibility.
What are the risks of investing in FIVE?
Claude: Retail sector cyclicality and consumer discretionary spending sensitivity to macroeconomic downturns. Modest operating margin of 9.6% provides limited cushion for cost pressures or competitive intensity.
What is FIVE's revenue and growth?
FIVE BELOW, INC reported revenue of $4.8B.
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 $6.47.
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 rating reflects both perspectives for balanced insights.
Is FIVE a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FIVE BELOW, INC has a STRONG BUY rating with 85% 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 16.4% (sector avg: 18%), net margin of 7.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy FIVE stock in 2026?
Our dual AI analysis gives FIVE BELOW, INC a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FIVE's free cash flow?
FIVE BELOW, INC's operating cash flow is $586.4M, with capital expenditures of $174.7M. FCF margin is 8.6%.
How does FIVE compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 7.5% (avg: 8%), ROE 16.4% (avg: 18%), current ratio 2.01 (avg: 1.5).