FIVE BELOW (FIVE) Stock Fundamental Analysis
NASDAQ:FIVE - Nasdaq - US33829M1018 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FIVE. FIVE was compared to 121 industry peers in the Specialty Retail industry. FIVE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, FIVE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
FIVE had positive earnings in the past year.
FIVE had a positive operating cash flow in the past year.
Each year in the past 5 years FIVE has been profitable.
FIVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FIVE's Return On Assets of 5.91% is fine compared to the rest of the industry. FIVE outperforms 73.55% of its industry peers.
The Return On Equity of FIVE (14.17%) is better than 71.90% of its industry peers.
FIVE has a better Return On Invested Capital (7.07%) than 66.12% of its industry peers.
FIVE had an Average Return On Invested Capital over the past 3 years of 8.48%. This is below the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 14.17% | ||
| ROIC | 7.07% |
ROA(3y)7.16%
ROA(5y)7.3%
ROE(3y)17.41%
ROE(5y)18.22%
ROIC(3y)8.48%
ROIC(5y)9.59%
1.3 Margins
FIVE has a Profit Margin of 6.52%. This is amongst the best in the industry. FIVE outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of FIVE has declined.
FIVE's Operating Margin of 8.39% is fine compared to the rest of the industry. FIVE outperforms 79.34% of its industry peers.
In the last couple of years the Operating Margin of FIVE has declined.
With a Gross Margin value of 35.02%, FIVE perfoms like the industry average, outperforming 46.28% of the companies in the same industry.
In the last couple of years the Gross Margin of FIVE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 6.52% | ||
| GM | 35.02% |
OM growth 3Y-21.23%
OM growth 5Y-6.62%
PM growth 3Y-12.57%
PM growth 5Y-7.15%
GM growth 3Y-1.19%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FIVE is destroying value.
FIVE has less shares outstanding than it did 1 year ago.
FIVE has less shares outstanding than it did 5 years ago.
FIVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.51 indicates that FIVE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.51, FIVE is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
FIVE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.74
WACC9.55%
2.3 Liquidity
A Current Ratio of 1.71 indicates that FIVE should not have too much problems paying its short term obligations.
FIVE has a Current ratio of 1.71. This is in the better half of the industry: FIVE outperforms 73.55% of its industry peers.
FIVE has a Quick Ratio of 1.71. This is a bad value and indicates that FIVE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FIVE (0.89) is better than 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for FIVE have decreased by -0.93% in the last year.
The Earnings Per Share has been growing by 10.07% on average over the past years. This is quite good.
FIVE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.70%.
Measured over the past years, FIVE shows a quite strong growth in Revenue. The Revenue has been growing by 15.99% on average per year.
EPS 1Y (TTM)-0.93%
EPS 3Y0.6%
EPS 5Y10.07%
EPS Q2Q%43.33%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y10.82%
Revenue growth 5Y15.99%
Sales Q2Q%19.54%
3.2 Future
Based on estimates for the next years, FIVE will show a very strong growth in Earnings Per Share. The EPS will grow by 30.76% on average per year.
The Revenue is expected to grow by 16.48% on average over the next years. This is quite good.
EPS Next Y-5.21%
EPS Next 2Y2.51%
EPS Next 3Y6.75%
EPS Next 5Y30.76%
Revenue Next Year14.18%
Revenue Next 2Y12.06%
Revenue Next 3Y11.01%
Revenue Next 5Y16.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.43, which indicates a rather expensive current valuation of FIVE.
FIVE's Price/Earnings ratio is a bit cheaper when compared to the industry. FIVE is cheaper than 64.46% of the companies in the same industry.
FIVE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.44, FIVE is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as FIVE.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FIVE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 24.44 |
4.2 Price Multiples
FIVE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIVE indicates a somewhat cheap valuation: FIVE is cheaper than 65.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.95 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
The decent profitability rating of FIVE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y2.51%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
FIVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
129.46
-0.72 (-0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.17%
Inst Owner Change0.01%
Ins Owners0.95%
Ins Owner Change4.82%
Market Cap7.13B
Analysts72.14
Price Target133.05 (2.77%)
Short Float %6.18%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)1.27%
Max EPS beat(2)3.28%
EPS beat(4)3
Avg EPS beat(4)36.99%
Min EPS beat(4)-2.24%
Max EPS beat(4)145.65%
EPS beat(8)4
Avg EPS beat(8)18.01%
EPS beat(12)6
Avg EPS beat(12)19.93%
EPS beat(16)8
Avg EPS beat(16)17.62%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)3.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.08%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)20.41%
PT rev (3m)29.79%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)22.06%
EPS NY rev (1m)0.98%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)5.6%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 24.44 | ||
| P/S | 1.77 | ||
| P/FCF | 26.95 | ||
| P/OCF | 13.28 | ||
| P/B | 3.84 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)5.3
EY4.09%
EPS(NY)5.3
Fwd EY4.09%
FCF(TTM)4.8
FCFY3.71%
OCF(TTM)9.75
OCFY7.53%
SpS73.29
BVpS33.75
TBVpS33.75
PEG (NY)N/A
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 14.17% | ||
| ROCE | 9.43% | ||
| ROIC | 7.07% | ||
| ROICexc | 8.55% | ||
| ROICexgc | 8.55% | ||
| OM | 8.39% | ||
| PM (TTM) | 6.52% | ||
| GM | 35.02% | ||
| FCFM | 6.56% |
ROA(3y)7.16%
ROA(5y)7.3%
ROE(3y)17.41%
ROE(5y)18.22%
ROIC(3y)8.48%
ROIC(5y)9.59%
ROICexc(3y)9.94%
ROICexc(5y)11.39%
ROICexgc(3y)9.94%
ROICexgc(5y)11.39%
ROCE(3y)11.31%
ROCE(5y)12.79%
ROICexcg growth 3Y-24.82%
ROICexcg growth 5Y-8.07%
ROICexc growth 3Y-24.82%
ROICexc growth 5Y-8.07%
OM growth 3Y-21.23%
OM growth 5Y-6.62%
PM growth 3Y-12.57%
PM growth 5Y-7.15%
GM growth 3Y-1.19%
GM growth 5Y-0.89%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.01% | ||
| Cap/Sales | 6.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.18% | ||
| Profit Quality | 100.47% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.51 |
F-Score6
WACC9.55%
ROIC/WACC0.74
Cap/Depr(3y)229.46%
Cap/Depr(5y)263.43%
Cap/Sales(3y)8.65%
Cap/Sales(5y)9.26%
Profit Quality(3y)40.25%
Profit Quality(5y)53.87%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.93%
EPS 3Y0.6%
EPS 5Y10.07%
EPS Q2Q%43.33%
EPS Next Y-5.21%
EPS Next 2Y2.51%
EPS Next 3Y6.75%
EPS Next 5Y30.76%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y10.82%
Revenue growth 5Y15.99%
Sales Q2Q%19.54%
Revenue Next Year14.18%
Revenue Next 2Y12.06%
Revenue Next 3Y11.01%
Revenue Next 5Y16.48%
EBIT growth 1Y-10.76%
EBIT growth 3Y-12.71%
EBIT growth 5Y8.3%
EBIT Next Year49.6%
EBIT Next 3Y22.15%
EBIT Next 5Y30.4%
FCF growth 1Y122.11%
FCF growth 3Y39.02%
FCF growth 5YN/A
OCF growth 1Y49.92%
OCF growth 3Y9.51%
OCF growth 5Y18.16%