Five Below Inc. Common Stock (FIVE)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable advantages and a sensible price. Five Below fits the first part: it is a specialty value retailer selling candy, snacks, beauty items, accessories, and party goods across the U.S. The FairStock Lynch rule calls it a FAST GROWER, with profit compounding at 23.8% a year and revenue at 19.4% over five years. The filed numbers show momentum. In fiscal 2025, the year ended 2026-01-31, revenue was $4.8B, net income was $358.6M, and diluted EPS was $6.47, up from $3.9B, $253.6M, and $4.60 in fiscal 2024, the year ended 2025-02-01. In the quarter ended 2026-08-01, revenue was $1.3B and net income was $221.4M, versus $1.0B and $42.8M in the quarter ended 2025-08-02. That is powerful. Financial health is decent: TTM free cash flow of $599.3M, a 5.1% FCF yield, ROE of 28.25%, and an Altman Z-Score of 3.83. But ROCE of 7.84% is modest, D/E is 0.82, and retail has no strong moat because competitors can copy low prices. Valuation gives pause. At the 2026-10-13 close of $213.35, FairStock calculates a P/E of 19.12, P/B of 4.74, EV/EBITDA of 13.44, PEG of 0.05, and a Graham Number of $106.28, leaving a margin of safety of -100.74%. The FairStock Score is 47/100. I would call this a quality growth candidate, not a Graham bargain.

In plain English: Five Below is a U.S. discount retailer that sells candy, snacks, beauty products, toys, and party goods at low prices. The business has grown sales and profits and produces plenty of cash, but it has some debt and its profit record has not moved in a straight line. At the recent price, the stock looks priced for more growth rather than sitting in the bargain bin based on its assets or earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer