Five Below Inc

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FIVE : NASDAQ : Services
$42.12 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 996,400
09/27/16 - 4:00 PM ET

Financial Analysis


FIVE BELOW INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. FIVE BELOW INC has weak liquidity. Currently, the Quick Ratio is 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 40.14% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)220.13182.19
EBITDA ($mil)22.2717.05
EBIT ($mil)15.7111.56
Net Income ($mil)9.857.06


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)96.0460.92
Total Assets ($mil)421.07339.3
Total Debt ($mil)0.00.0
Equity ($mil)269.7192.44


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin33.3232.84
EBITDA Margin10.119.35
Operating Margin7.146.34
Sales Turnover2.162.17
Return on Assets14.9414.13
Return on Equity23.3324.92
Debt Q2 FY16 Q2 FY15
Current Ratio2.792.26
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)54.8654.53
Div / share0.00.0
EPS0.180.13
Book value / share4.923.53
Institutional Own % n/a n/a
Avg Daily Volume971514.0878769.0

Valuation


BUY. FIVE BELOW INC's P/E ratio indicates a significant premium compared to an average of 21.96 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 8.57 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 12.35. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, FIVE BELOW INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FIVE 36.62 Peers 21.96   FIVE 29.50 Peers 14.09

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

FIVE is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

FIVE is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FIVE 26.16 Peers 19.56   FIVE 1.48 Peers 1.91

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

FIVE is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

FIVE trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FIVE 8.57 Peers 12.35   FIVE 30.68 Peers 0.78

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FIVE is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

FIVE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FIVE 2.54 Peers 1.48   FIVE 23.21 Peers 7.28

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

FIVE is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FIVE has a sales growth rate that significantly exceeds its peers.

 

 

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