Five Below, Inc. (FIVE) AI Stock Analysis

Five Below, Inc. operates as a specialty value retailer catering primarily to tween and teen customers across the United States. Established in 2002 and headquartered in Philadelphia, Pennsylvania, the company offers a diverse array of trendy and affordable products. Core offerings include accessories, apparel such as athletic wear and t-shirts, room decor, plush items, and novelty home accents. Five Below also sells an extensive selection of entertainment and recreation items, including games, puzzles, toys, electronics accessories, books, craft supplies, and outdoor seasonal goods, along with party supplies, candy, snacks, and beverages.

Five Below's revenue expanded at a 5-year CAGR of 19.4% from FY2021 to FY2026, moving from $2.85B in FY2022 to $4.76B in FY2026. Gross margin stood at 32.0% in FY2026, down from 36.2% in FY2022, while operating margin ended FY2026 at 9.6%. Net income reached $358.6M in FY2026, generating an EPS of $6.66. Over the trailing twelve months ended July 31, 2026, revenue stood at $5.31B with an operating margin of 8.9% and a profit margin of 11.7%. In the latest quarter, revenue grew 22.9% year-over-year, while quarterly earnings surged 418.2%.

As of July 31, 2026, Five Below held $1.19B in cash and short-term investments alongside total debt of $2.04B, resulting in net debt of $850.7M. Shareholders' equity was $2.48B, yielding a debt-to-equity ratio of 0.82 and a current ratio of 2.22. In FY2026, the company generated $586.4M in operating cash flow and $411.7M in free cash flow after funding capital expenditures of $174.7M. Over the past five years, its share count changed by -1.5%.

Five Below trades at a trailing P/E of 20.0x and a forward P/E of 22.1x, above the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value of $13.37B equates to an EV/EBITDA multiple of 13.6x, compared to the peer median of 11.1x. The company's price-to-sales multiple is 2.3x versus the peer median of 0.7x. Over the past year, Five Below's 46.6% return outpaced the S&P 500 (SPY) return of 16.8%, though its 5-year return of 17.2% trailed SPY's 83.0%.

Consensus ratings include 15 Strong Buys, 2 Buys, and 9 Holds, with zero Sells. The mean price target is $305.27, representing a 37.1% premium over the last close of $222.72. For the fiscal year ending January 31, 2027, analysts project revenue of $5.71B and an EPS of $10.25, indicating 53.6% earnings growth. Over the last four quarters, the company beat EPS estimates 3 times. The next earnings date is December 2, 2026.

This page is an AI-written research summary of Five Below, Inc. (FIVE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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