Five Below Intrinsic Value – Is Five Below Worth the Investment of Your Confidence?

December 27, 2023

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When it comes to investing, it is important to consider whether or not the opportunity is worth your confidence. This is especially true when it comes to considering investing in Five Below ($NASDAQ:FIVE), a leading retailer of value-priced merchandise. By offering discount prices to its customers, Five Below has been able to build a successful business model and gain a loyal customer base. Investing in Five Below offers investors the opportunity to benefit from the company’s growth and profitability. The company also has a strong commitment to financial strength, with positive net income and cash flow each year since going public. In addition to the potential financial benefits of investing in Five Below, investors can have peace of mind knowing that the company’s management team is committed to creating long-term value for its shareholders.

Five Below is focused on expanding its footprint into new markets and continuing to offer customers low prices on a wide variety of items. This commitment to its customers is what has made the company so successful, and it is likely to continue to drive growth for many years to come. Overall, the long-term outlook for Five Below is encouraging, making it a worthwhile investment for those who are confident in the potential returns. With its strong financial performance, commitment to creating value for shareholders, and dedication to providing customers with low prices, Five Below is certainly worth the investment of your confidence.

Stock Price

Tuesday was a good day for investors in FIVE BELOW stock, with the stock opening at $204.6 and closing at $210.4, up by 3.8% from its previous closing price of 202.7. This increase in share price indicates that the market may be confident in the company’s financial future. But is FIVE BELOW really worth the investment of your personal confidence? Investors should look at a variety of factors when deciding whether to invest in a company like FIVE BELOW. The company’s current financial standing, long-term prospects, current trends in the industry, and other factors should all be taken into account.

In addition, investors should also consider the company’s management team and how they have handled past successes or failures. All of these considerations can help an investor make an informed decision about whether FIVE BELOW is the right choice for their own investments. Ultimately, the decision to invest in FIVE BELOW comes down to each individual investor’s own assessment of the company’s strengths and weaknesses. While Tuesday’s stock prices show that the market believes in the company’s future, every investor must make their own determination as to whether FIVE BELOW is worth their own confidence. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Five Below. More…

    Total Revenues Net Income Net Margin
    3.34k 270.23 8.1%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Five Below. More…

    Operations Investing Financing
    451.8 -237.56 -95.53
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Five Below. More…

    Total Assets Total Liabilities Book Value Per Share
    3.66k 2.28k 24.74
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Five Below are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    23.1% 38.4% 10.3%
    FCF Margin ROE ROA
    4.2% 15.2% 5.9%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Five Below Intrinsic Value

    At GoodWhale, we strive to help our users make truly informed investment decisions. For this reason, we analyze the fundamentals of Five Below to provide our users with an accurate understanding of the company’s performance and potential. After running our proprietary Valuation Line analysis on Five Below, we concluded that the fair value of a single share is around $208.6. Currently, the stock is trading at $210.4, which is slightly higher than the fair value but still considered to be a fair price. This indicates that there is an opportunity for investors to benefit from investing in Five Below. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    Despite the intense competition, Five Below Inc continues to thrive and has managed to carve out a niche for itself in the market.

    – Ross Stores Inc ($NASDAQ:ROST)

    Ross Stores Inc is a chain of American off-price department stores. It operates under two brands, Ross and dd’s DISCOUNTS. As of 2022, the company had a market cap of 40.44B, making it one of the largest retailers in the United States. In addition, Ross Stores Inc also has a strong Return on Equity (ROE) of 29.12%, which indicates that the company is making effective use of its shareholders’ funds. The company’s success is attributed to its effective management strategies and cost containment practices. The company has been able to maintain its market share and profitability despite the presence of competitors.

    – O’Reilly Automotive Inc ($NASDAQ:ORLY)

    O’Reilly Automotive Inc is an American retail company specializing in the distribution of automotive aftermarket parts, tools, supplies, equipment and accessories. As of 2022, O’Reilly Automotive Inc has a market capitalization of 50.97 billion US dollars, making it one of the largest publicly traded auto parts retailers in the US. The company’s Return on Equity (ROE) stands at -159.26%, indicating that it is not generating enough returns for its shareholders. Despite this, the company continues to focus on expanding its operations in order to increase its market share and profitability.

    – Kirkland’s Inc ($NASDAQ:KIRK)

    Kirkland’s Inc is a specialty retailer of home décor, furniture, and gifts. It has a market cap of 46.43M as of 2022, which is relatively low compared to other companies in the home décor industry. Despite this, the company has still managed to maintain a negative Return on Equity (-43.0%) which indicates that the company has failed to generate a return on the investments of its shareholders. This could be due to their lack of resources, or because their current strategy may not be optimal for creating shareholder value.

    Summary

    Five Below is a rapidly growing retailer of value-priced merchandise for teens and pre-teens.

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