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Five Below (FIVE) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Consumer Cyclical•Specialty Retail
B
GoodMetricSide Score: 67/100
ProfitabilityProfit20/30
GrowthGrowth25/25
Balance SheetBalance17/25
Cash QualityCash5/20
Price & Volume
Market Cap $10.08B

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

Moat Signals

Competitive analysis based on 55 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging 8.4%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Moderate Moat

ROE averages 16.0% but has fluctuated — the competitive advantage may be cyclical or emerging.

Cash Generation

Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~36.7% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 55 quarters

Some Concerns

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$5.08B
25.9%
Q. Revenue
$1.29B
TTM EBITDA
$757.48M
47.0%
TTM Op. Income
$560.79M
65.7%
Q. Op. Income
$154.24M
TTM Net Income
$440.55M
67.3%
Q. Net Income
$123.06M
EPS
$2.23
Shares Out.
$55.26M
0.4%
$5.08B in TTM revenue grew 25.9% YoY, reaching $1.29B last quarter. TTM EBITDA of $757.48M and TTM operating income of $560.79M shows growth is flowing through. Net income of $440.55M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
37.2%
11.6%
EBITDA Margin
16.0%
Op. Margin
12.0%
129.0%
Net Margin
9.6%
125.8%
Op. margin of 12.0% is up 6.8% YoY — cost efficiency is improving. Net margin at 9.6% and gross margin of 37.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
22.9x
P/S Ratio
2.0x
P/B Ratio
4.4x
At 22.9x P/E, the stock trades in line with market averages — fairly valued. P/S of 2.0x and P/B of 4.4x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$5.06B
Cash
$638.89M
Long-Term Debt
N/A
Book Value
$2.31B
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$227.22M
Free Cash Flow
$190.03M
97.0%
FCF Margin
3.7%
FCF / Net Income
1.5
FCF of $190.03M on $227.22M in operating cash flow. The FCF / Net Income ratio of 0.4x indicates partial cash conversion — earnings quality needs attention.

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