Five Below, Inc. — Specialty Retail. Scored on the same transparent 7-signal model behind the daily rankings.
★
FIVE
Five Below, Inc. · Specialty Retail
FCF$505mC+
Rev+22.9%A-
D/E0.86B
P/E23.2xB
PEG0.98B+
78.8Score
$184.24$10.2B
1Y Target$260.57Analyst consensus · 21 analysts
5Y Target$328.97Compound horizon
10Y Target$421.89Long-dated conviction
FCF$505mTTMC+
FCF $505m — respectable but not differentiating
Rev+22.9%TTM YoYA-
Revenue +22.9% — strong growth, well above S&P median (~7%)
D/E0.86B
D/E 0.86 — near the Consumer Cyclical debt median (≈60th pctile)
P/E23.2xB
P/E 23.2 — near the Consumer Cyclical median (≈60th pctile)
PEG0.98B+
PEG 0.98 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 78.8
Quality0.73
Growth0.99
Value0.68
Why this score
Durable high returns
Entry · Margin of safety
52-week rangeMid-range
27% off the 12-month high
vs DCF fair value24% aboveest. fair value ~$148
Quality signals · context only
Gross profitability37% · B+gross profit ÷ total assets (Novy-Marx)
ROIC19.2% · A-return on invested capital — not score-weighted
Why now
Five Below’s relentless rollout of personalized living‑space décor (lamps, posters, accent furniture) is the engine of compounding growth, underpinned by 22.9% YoY revenue growth, $505m of free cash flow, and a 0.98 PEG that signals cheap, high‑growth earnings – the thesis rests on that décor‑driven revenue tailwind staying intact.
Moat
The company’s curated décor assortment creates a pricing premium and low‑cost sourcing advantage, delivering a 19% ROE while maintaining a modest 0.86 debt‑to‑equity, a margin profile competitors can’t quickly replicate in the value‑oriented specialty retail space.
Risk
A P/E of 22.2 and profit margin of 8.7% leave little cushion if growth decelerates; a slip in revenue growth below 15% YoY or margin compression under 7% would force a re‑rating, confirming the bear case. The key signal is a sustained slowdown in the décor segment’s sales momentum.
Horizon
1-3 yr $260.57 (21-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $328.97 at ~12% CAGR — dividend + buyback compounding. 10 yr $421.89 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · FIVE
$
%
%
Shares to buy
10
Position size
$1,842
3.7% of portfolio
Stop price
$138.18
25% below $184.24
$ at risk if stopped
$460.60
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Five Below, Inc. (FIVE): score, valuation & FAQ
Five Below, Inc. (FIVE) is a Specialty Retail company that scores 78.8 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-) and PEG (B+). On valuation, FIVE sits about 24% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is FIVE a good stock to buy?
Bull Rankings scores FIVE 78.8 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (A-) and PEG (B+). A score is a quantitative screen of Five Below, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does FIVE score 78.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). FIVE earns its highest marks on Rev (A-) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is FIVE overvalued or undervalued?
Based on $184.24, FIVE sits about 24% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 23.2x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in FIVE?
A P/E of 22.2 and profit margin of 8.7% leave little cushion if growth decelerates; a slip in revenue growth below 15% YoY or margin compression under 7% would force a re‑rating, confirming the bear case. The key signal is a sustained slowdown in the décor segment’s sales momentum.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.