Five Below FIVE
United StatesConsumer Cyclical · Specialty RetailUSD
310.48 USD (+52.0%)
21 analysts
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Five Below is a US discount retailer selling value merchandise (toys, tech, fashion, home, and candy) mostly priced under $5, targeting young consumers and budget-conscious families.
Key points
from its scores- ✓Good share-price trend9.7
- ✓Strong growth9.2
- ✕Little or no dividend1.5
AI analysis
bottom line, main risk, context and newsGrowth and valuation are attractive, but the tight operating margin and lack of dividend limit short-term upside.
Five Below shows exceptional growth (revenue +22.9%, earnings +418.2%) with reasonable valuation (P/E 18.3, PEG 0.98) and a healthy balance sheet (ND/EBITDA 1.04), although its dividend yield is nil and operating margin (8.86%) is moderate.
The main risk is intense competition in discount retail (Dollar Tree, Dollar General, Amazon) which could compress the operating margin (currently 8.86%) and slow revenue growth if the low-income consumer becomes more pressured.
Context and risks
No recent relevant news and no material exposure to current macro factors. Five Below's discount retail business does not depend on commodities, shipping routes, or significant external financing (ND/EBITDA of 1.04), so the rise in rates and geopolitics do not alter its risk profile.
Is Five Below stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 17% above the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 18.3 | 17.8 | +3% |
| EV / EBITDA | 14.7 | 11.2 | +31% |
| Price / book | 4.5 | 2.9 | +58% |
| Price / sales | 2.1 | 1.3 | +69% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.5 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 310.48 USD, +52.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.1 (sector 5.7), Growth 9.2 (sector 5.9).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 18.3
- Forward P/E
- 18.5
- EV / EBITDA
- 14.7
- Price / book
- 4.5
- Price / sales
- 2.1
- PEG
- 0.98
- Market cap
- 11.2B USD
- Enterprise value
- 12.1B USD
Profitability
- ROE
- 28.3%
- ROA
- 7.8%
- ROIC (approx.)
- 10.4%
- Gross margin
- 37.6%
- Operating margin
- 8.9%
- Net margin
- 11.7%
- Free cash flow
- 367.4M USD
- FCF yield
- 3.3%
- Cash conversion
- 45%
Solvency
- Total debt
- 2.0B USD
- Net debt
- 850.7M USD
- Cash
- 1.2B USD
- EBITDA
- 820.4M USD
- Net debt / EBITDA
- 1.04
- Debt / equity
- 82.33
- Current ratio
- 2.22
- Quick ratio
- 1.18
Growth
- Revenue growth
- +22.9%
- Earnings growth
- +418.2%
- EPS (TTM)
- 11.16 USD
- EPS (forward)
- 11.06 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.94
- Analyst consensus
- Buy (21)
- Target price
- 310.48 USD
- 52-week range
- 137.77 – 263.88
Recent news
All FIVE news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Five Below
Is Five Below stock cheap or expensive?
On P/E and EV / EBITDA, it trades 17% above the Consumer Cyclical median on average. Valuation score: 6.5 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 310.48 USD, +52.0% versus the price. This is not investment advice.
What score does Five Below get on MeridIAn Screener?
It scores 6.7 out of 10, rank 382 of 2,130 (better than 80% of the companies analysed). Its strongest category is Momentum (9.7) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Five Below's P/E ratio?
Its P/E is 18.3: the share price equals 18.3 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 18.5.
How much is Five Below worth on the stock market?
Its market capitalisation is 11.2B USD and its enterprise value, debt included, is 12.1B USD.
How much debt does Five Below have?
Its net debt (debt minus cash) is 850.7M USD. That is 1.04 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Five Below pay a dividend?
It pays no dividend, or almost none.
How has Five Below stock performed over the last year?
It has risen 47.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 137.77 and 263.88 USD. Past performance does not guarantee future results.
What do analysts think of Five Below?
21 analysts cover it; their average recommendation is “Buy” and their average target is 310.48 USD (+52.0% versus the price). It is an estimate, not market data.