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Relative to Consumer Discretionary Sector Median (N=442)
Metric
FIVE
Benchmark
P/E Ratio
105.5x
+331%
EV/EBITDA
38.7x
+690%
Price / Book
5.7x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-80.8%
$41.76Spot: $217.37
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
5.4%
Sector: 6.2%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, FIVE BELOW, INC (FIVE) receives a "Hold" rating with a composite score of 51.6/100, ranked #147 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 73/100. This is quantitative analysis only — not investment advice.
FIVE BELOW, INC (FIVE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIVE BELOW, INC Do?
Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including 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, such as glitter lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, 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 for cell phones, tablets, audio, and computers, such as cases, chargers, headphones, and other items; books, video games, and DVDs; craft activity kits; arts and crafts supplies, such as 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 January 29, 2022, the company operated approximately 1,190 stores in 40 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 incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania. FIVE BELOW, INC (FIVE) is classified as a large-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Joel D. Anderson and employs approximately 20,200 people, headquartered in PHILADELPHIA, Pennsylvania. With a market capitalization of $13.0B, FIVE is one of the prominent companies in the Consumer Discretionary sector.
FIVE BELOW, INC (FIVE) Stock Rating — Hold (April 2026)
As of April 2026, FIVE BELOW, INC receives a Hold rating with a composite score of 51.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FIVE ranks #147 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, FIVE BELOW, INC ranks #4 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FIVE Stock Price and 52-Week Range
FIVE BELOW, INC (FIVE) currently trades at $217.37. The stock lost $7.82 (3.5%) in the most recent trading session. The 52-week high for FIVE is $229.33, which means the stock is currently trading -5.2% from its annual peak. The 52-week low is $52.38, putting the stock 315.0% above its annual trough. Recent trading volume was 1.2M shares, reflecting moderate market activity.
Is FIVE Overvalued or Undervalued? — Valuation Analysis
FIVE BELOW, INC (FIVE) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 105.51x, compared to the Consumer Discretionary sector average of 24.47x — a premium of 331%. The price-to-book ratio stands at 5.71x, versus the sector average of 1.99x. The price-to-sales ratio is 3.41x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, FIVE trades at 38.73x EV/EBITDA, versus 4.91x for the sector.
Overall, FIVE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FIVE BELOW, INC Profitability — ROE, Margins, and Quality Score
FIVE BELOW, INC (FIVE) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 5.4%, compared to the Consumer Discretionary sector average of 6.2%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.4% versus the sector average of 2.5%.
On a margin basis, FIVE BELOW, INC reports gross margins of 32.5%, compared to 36.9% for the sector. The operating margin is 3.8% (sector: 3.8%). Net profit margin stands at 3.1%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 26.5% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FIVE Debt, Balance Sheet, and Financial Health
FIVE BELOW, INC has a debt-to-equity ratio of 125.0%, compared to the Consumer Discretionary sector average of 89.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.01x, indicating strong short-term liquidity. Cash and equivalents stand at $351M.
FIVE has a beta of 1.39, meaning it is more volatile than the broader market — a $10,000 investment in FIVE would be expected to move 38.7% more than the S&P 500 on any given day. The stability factor score for FIVE BELOW, INC is 40/100, reflecting average volatility within the normal range for its sector.
FIVE BELOW, INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIVE BELOW, INC reported revenue of $3.67B and earnings per share (EPS) of $6.51. Net income for the quarter was $119M. Gross margin was 32.5%. Operating income came in at $144M.
In FY 2026, FIVE BELOW, INC reported revenue of $4.76B and earnings per share (EPS) of $6.51. Net income for the quarter was $359M. Gross margin was 36.0%. Revenue grew 22.9% year-over-year compared to FY 2025. Operating income came in at $457M.
In Q2 2026, FIVE BELOW, INC reported revenue of $1.03B and earnings per share (EPS) of $0.78. Net income for the quarter was $43M. Gross margin was 33.3%. Revenue grew 23.7% year-over-year compared to Q2 2025. Operating income came in at $52M.
In Q1 2026, FIVE BELOW, INC reported revenue of $971M and earnings per share (EPS) of $0.75. Net income for the quarter was $41M. Gross margin was 33.4%. Revenue grew 19.5% year-over-year compared to Q1 2025. Operating income came in at $51M.
Over the past 8 quarters, FIVE BELOW, INC has demonstrated a growth trajectory, with revenue expanding from $812M to $3.67B. Investors analyzing FIVE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FIVE Dividend Yield and Income Analysis
FIVE BELOW, INC (FIVE) does not currently pay a dividend. This is common among growth-oriented companies in the Retail industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.
FIVE Momentum and Technical Analysis Profile
FIVE BELOW, INC (FIVE) has a momentum factor score of 73/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 34/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FIVE vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing FIVE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FIVE vs S&P 500 (SPY) comparison to assess how FIVE BELOW, INC stacks up against the broader market across all factor dimensions.
FIVE Next Earnings Date
No upcoming earnings date has been announced for FIVE BELOW, INC (FIVE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FIVE? — Investment Thesis Summary
FIVE BELOW, INC presents a balanced picture with arguments on both sides. Price momentum is positive at 73/100, suggesting the trend favors buyers.
In summary, FIVE BELOW, INC (FIVE) earns a Hold rating with a composite score of 51.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FIVE stock.
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Institutional Research Dossier
FIVE BELOW, INC (FIVE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Five Below, Inc. (FIVE) is a leading specialty value retailer catering to the tween and teen demographic in the United States. The BCR quant model has assigned FIVE a Buy rating (4-star, Composite Score: 50.4/100, Rank #49 of 4446) based on its strong momentum, attractive valuation, and competitive position in a large and growing market. Despite near-term profitability and investment concerns, the company's unique product assortment, omnichannel capabilities, and nimble business model position it for continued strong growth and shareholder returns.
Business Strategy & Overview
Five Below operates a chain of specialty value retail stores that offer a broad range of trend-right, high-quality merchandise targeted at the tween and teen customer segment. The company's product assortment spans a wide range of categories, including accessories, home décor, sports gear, tech products, craft supplies, and seasonal/holiday items, all priced at $5 or below. This value-oriented, differentiated model has allowed Five Below to carve out a defensible niche in the highly competitive retail landscape, appealing to its core demographic's desire for trendy, affordable, and accessible merchandise.
The company's strategy is centered around rapidly expanding its physical store footprint, with plans to grow from approximately 1,190 stores currently to over 2,500 locations nationwide over the long term. Five Below is also investing in its omnichannel capabilities, including a robust e-commerce platform and buy-online-pickup-in-store (BOPIS) functionality, to enhance the customer experience and drive incremental sales. Additionally, the company is continually refreshing its product assortment to stay ahead of evolving consumer preferences and capitalize on emerging trends.
Five Below operates in the broader consumer discretionary sector, which has historically been cyclical and sensitive to macroeconomic conditions. However, the company's focus on value, its diversified product mix, and its appeal to a younger demographic have helped insulate it from some of the more severe downturns experienced by other retailers. As the economy and consumer spending recover from the COVID-19 pandemic, Five Below is well-positioned to capture market share and accelerate its growth trajectory.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
26.5%
Sector: 3.3%
+704% VS SCTR
Economic Moat Analysis
Five Below has built a narrow economic moat around its business, primarily driven by its strong brand recognition, differentiated product assortment, and efficient operating model. The company's focus on the tween and teen demographic, a large and largely underserved market, has allowed it to establish a unique position in the value retail landscape. The Five Below brand has become synonymous with trendy, high-quality merchandise at extremely affordable prices, fostering a loyal customer base and creating barriers to entry for potential competitors.
The company's ability to leverage its scale and buyer power to secure favorable terms from suppliers gives it a cost advantage over smaller competitors. Additionally, Five Below's centralized distribution network and lean, flexible store operations enable it to maintain industry-leading operating margins, further strengthening its moat. The company's nimble sourcing and merchandising strategies also allow it to quickly adapt to changing consumer preferences and capitalize on emerging trends, making it difficult for rivals to replicate its success.
While Five Below does not enjoy the same level of network effects or switching costs as some of its e-commerce-focused peers, its combination of brand recognition, product differentiation, and operational efficiency creates a formidable barrier to entry. This moat is further reinforced by the company's continuous investment in store expansion, digital capabilities, and talent development, positioning it to maintain its competitive edge in the years to come.
Financial Health & Profitability
Five Below has demonstrated a strong financial performance, with robust revenue growth and profitability metrics that outpace its consumer discretionary peers. Over the past four fiscal years, the company has achieved a remarkable revenue CAGR of 26.5%, far exceeding the sector average of 3.2%. This growth has been driven by a combination of new store openings, strong same-store sales, and the successful execution of the company's omnichannel strategy.
In terms of profitability, Five Below has maintained a consistently healthy gross margin, averaging 34.9% over the past four fiscal years, compared to the sector average of 36.9%. However, the company's operating margin has lagged behind, averaging 8.4% during the same period, slightly below the sector's 8.8% average. This is primarily due to the company's ongoing investments in store expansion, technology, and talent, as well as the impact of the COVID-19 pandemic on its operations.
Despite the near-term pressure on profitability, Five Below's balance sheet remains solid, with a current ratio of 2.01 as of the most recent quarter, indicating strong liquidity. The company's debt levels are also manageable, with a debt-to-equity ratio of 125.00, slightly higher than the sector average of 91.00. Going forward, the company's ability to continue generating robust revenue growth and improving its operational efficiency will be critical to maintaining its strong financial health and creating long-term shareholder value.
Valuation Assessment
At its current valuation, Five Below appears to be reasonably priced, with a P/E ratio of 34.9x and an EV/EBITDA multiple of 4.8x, both of which are in line with the company's historical averages and the consumer discretionary sector. These multiples suggest that the market is pricing in the company's strong growth potential and competitive positioning, while also reflecting the near-term challenges it faces in maintaining profitability.
Compared to its peers, Five Below's valuation is slightly higher than the sector averages of 28.0x P/E and 5.3x EV/EBITDA. However, this premium is justified by the company's superior revenue growth, higher net margins, and stronger competitive moat. Additionally, the stock's current free cash flow yield of approximately 3.5% (based on the company's trailing 12-month FCF) suggests that the market may be underappreciating the value-creation potential of Five Below's business model.
Given the company's long-term growth prospects, its disciplined capital allocation, and its ability to navigate the changing retail landscape, the current valuation appears reasonable and presents an attractive entry point for investors with a longer-term investment horizon. As Five Below continues to execute on its strategic initiatives and capitalize on the evolving consumer preferences, the stock could see further upside from its current levels.
Risk & Uncertainty
While Five Below's business model and growth prospects are compelling, the company does face several risks and uncertainties that could impact its future performance. One of the primary concerns is the highly competitive nature of the retail industry, particularly the value-oriented segment. The company faces intense competition from both brick-and-mortar and online retailers, as well as potential new entrants that may be able to replicate or undercut Five Below's value proposition.
Another risk factor is the company's reliance on consumer discretionary spending, which can be volatile and sensitive to macroeconomic conditions. A prolonged economic downturn or a shift in consumer preferences could put pressure on Five Below's margins and growth trajectory. Additionally, the company's rapid expansion plans and significant investments in technology and talent development may strain its operational and financial resources, potentially impacting its profitability in the short to medium term.
Lastly, regulatory and legal risks, such as changes in labor laws, product safety regulations, or data privacy requirements, could also pose challenges for Five Below and increase its cost of doing business. The company's centralized distribution model and reliance on third-party vendors may also expose it to supply chain disruptions or other operational disruptions beyond its control.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFive Below's unique positioning in the value retail space, with its focus on trend-right, affordable merchandise for the tween and teen demographic, provides a significant competitive advantage and a long runway for growth. The company's nimble sourcing and merchandising strategies allow it to quickly adapt to changing consumer preferences, driving strong customer loyalty and market share gains.
BULL VIEWFive Below's aggressive store expansion plans, combined with its investments in omnichannel capabilities, position the company to capture a larger share of the growing value retail market. As the economy and consumer spending recover from the pandemic, Five Below is well-poised to accelerate its revenue and earnings growth, driving significant shareholder value.
BULL VIEWThe company's strong brand recognition, efficient operating model, and disciplined capital allocation have enabled Five Below to consistently generate robust profitability and cash flow, which can be reinvested to fuel further expansion and innovation. This virtuous cycle positions the company for continued outperformance in the years ahead.
The Bear Case
BEAR VIEWFive Below's reliance on discretionary consumer spending and its exposure to macroeconomic volatility could limit the company's growth and profitability, particularly if the economy faces a prolonged downturn. The highly competitive nature of the value retail industry may also put pressure on the company's margins and market share, making it difficult to maintain its current growth trajectory.
BEAR VIEWThe company's aggressive store expansion plans and investments in technology and talent development may strain its operational and financial resources, leading to higher costs and reduced profitability in the short to medium term. This could put the company's valuation at risk and make it more vulnerable to competitive threats.
BEAR VIEWFive Below's centralized distribution model and reliance on third-party vendors expose the company to supply chain disruptions and operational risks that could disrupt its operations and impact its financial performance. Additionally, the company's exposure to regulatory and legal risks, such as changes in labor laws or product safety requirements, could increase its cost of doing business and erode its competitive edge.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FIVE and 4,400+ other equities.
FIVE BELOW, INC exhibits a 593% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.4%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
32.5%
Sector: 36.9%
Operating Margin
Core business profitability
3.8%
Sector: 3.8%
Net Margin
Bottom-line profitability
3.1%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
