FIVE BELOW (FIVE) Stock Fundamental Analysis
NASDAQ:FIVE - Nasdaq - US33829M1018 - Common Stock - Currency: USD
FIVE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. FIVE has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
In the past 5 years FIVE has always been profitable.
In the past 5 years FIVE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FIVE (5.84%) is better than 72.73% of its industry peers.
With a decent Return On Equity value of 14.02%, FIVE is doing good in the industry, outperforming 71.07% of the companies in the same industry.
FIVE has a better Return On Invested Capital (6.78%) than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FIVE is below the industry average of 12.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.84% | ||
| ROE | 14.02% | ||
| ROIC | 6.78% |
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
The Profit Margin of FIVE (6.54%) is better than 81.82% of its industry peers.
FIVE's Profit Margin has declined in the last couple of years.
FIVE's Operating Margin of 8.35% is fine compared to the rest of the industry. FIVE outperforms 78.51% of its industry peers.
FIVE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.89%, FIVE is in line with its industry, outperforming 45.45% 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 | 8.35% | ||
| PM (TTM) | 6.54% | ||
| GM | 34.89% |
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
FIVE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FIVE has less shares outstanding
Compared to 5 years ago, FIVE has less shares outstanding
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 3.26 indicates that FIVE is not in any danger for bankruptcy at the moment.
FIVE's Altman-Z score of 3.26 is fine compared to the rest of the industry. FIVE outperforms 74.38% of its industry peers.
There is no outstanding debt for FIVE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.69
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.79 indicates that FIVE should not have too much problems paying its short term obligations.
FIVE has a Current ratio of 1.79. This is in the better half of the industry: FIVE outperforms 76.03% of its industry peers.
FIVE has a Quick Ratio of 1.79. 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 (0.91) is better than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
FIVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.01%.
FIVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.07% yearly.
FIVE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
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)-7.01%
EPS 3Y0.6%
EPS 5Y10.07%
EPS Q2Q%-4.66%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y10.82%
Revenue growth 5Y15.99%
Sales Q2Q%3.97%
3.2 Future
The Earnings Per Share is expected to grow by 30.76% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.48% on average over the next years. This is quite good.
EPS Next Y-6.13%
EPS Next 2Y0.33%
EPS Next 3Y4.25%
EPS Next 5Y30.76%
Revenue Next Year12.22%
Revenue Next 2Y10.8%
Revenue Next 3Y10.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
FIVE is valuated rather expensively with a Price/Earnings ratio of 22.21.
64.46% of the companies in the same industry are more expensive than FIVE, based on the Price/Earnings ratio.
FIVE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 23.66 indicates a rather expensive valuation of FIVE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FIVE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FIVE to the average of the S&P500 Index (22.43), we can say FIVE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 23.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FIVE is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.77 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
FIVE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y0.33%
EPS Next 3Y4.25%
5. Dividend
5.1 Amount
FIVE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.93
+2.99 (+2.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.51%
Inst Owner Change-0.12%
Ins Owners1.73%
Ins Owner Change7.11%
Market Cap6.16B
Analysts72.41
Price Target101.83 (-9.02%)
Short Float %8.62%
Short Ratio1.59
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)73.46%
Min EPS beat(2)1.27%
Max EPS beat(2)145.65%
EPS beat(4)2
Avg EPS beat(4)34.67%
Min EPS beat(4)-6.03%
Max EPS beat(4)145.65%
EPS beat(8)4
Avg EPS beat(8)18.2%
EPS beat(12)5
Avg EPS beat(12)19.61%
EPS beat(16)8
Avg EPS beat(16)19.42%
Revenue beat(2)1
Avg Revenue beat(2)1.22%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)3.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)3.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.28%
Revenue beat(16)4
Avg Revenue beat(16)-0.55%
PT rev (1m)-0.66%
PT rev (3m)-18.35%
EPS NQ rev (1m)35.68%
EPS NQ rev (3m)39.65%
EPS NY rev (1m)4.35%
EPS NY rev (3m)-10.23%
Revenue NQ rev (1m)4.71%
Revenue NQ rev (3m)6.46%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 23.66 | ||
| P/S | 1.59 | ||
| P/FCF | 57.77 | ||
| P/OCF | 14.31 | ||
| P/B | 3.41 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)5.04
EY4.5%
EPS(NY)4.73
Fwd EY4.23%
FCF(TTM)1.94
FCFY1.73%
OCF(TTM)7.82
OCFY6.99%
SpS70.42
BVpS32.85
TBVpS32.85
PEG (NY)N/A
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.84% | ||
| ROE | 14.02% | ||
| ROCE | 9.04% | ||
| ROIC | 6.78% | ||
| ROICexc | 7.95% | ||
| ROICexgc | 7.95% | ||
| OM | 8.35% | ||
| PM (TTM) | 6.54% | ||
| GM | 34.89% | ||
| FCFM | 2.75% |
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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 193.49% | ||
| Cap/Sales | 8.36% | ||
| Interest Coverage | 770.99 | ||
| Cash Conversion | 87.66% | ||
| Profit Quality | 42.05% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.26 |
F-Score6
WACC9.79%
ROIC/WACC0.69
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)-7.01%
EPS 3Y0.6%
EPS 5Y10.07%
EPS Q2Q%-4.66%
EPS Next Y-6.13%
EPS Next 2Y0.33%
EPS Next 3Y4.25%
EPS Next 5Y30.76%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y10.82%
Revenue growth 5Y15.99%
Sales Q2Q%3.97%
Revenue Next Year12.22%
Revenue Next 2Y10.8%
Revenue Next 3Y10.4%
Revenue Next 5Y16.48%
EBIT growth 1Y-16.01%
EBIT growth 3Y-12.71%
EBIT growth 5Y8.3%
EBIT Next Year45.77%
EBIT Next 3Y21.65%
EBIT Next 5Y30.4%
FCF growth 1Y-35.19%
FCF growth 3Y39.02%
FCF growth 5YN/A
OCF growth 1Y-13.8%
OCF growth 3Y9.51%
OCF growth 5Y18.16%