Recent News
On November 7th Five Below opened a first wave of new Pacific Northwest stores as part of a planned ~150‑store expansion for 2025, with grand‑opening promotions planned for early November. Customers reported site/app store‑locator issues and uneven product rollouts across regions through September and October, with several user‑reported threads describing wrong store assignments and delayed item availability.
Technical Analysis
ADX at 13.21 indicates no trend, which reduces confidence that current price action will sustain a clear directional move tied to the holiday season or recent news; low ADX supports a range‑bound bias against the stated valuation.
DI+ at 19.27 shows a peak & reversal, a bearish signal given the rules for directional indicators; DI‑ at 24.48 also shows a peak & reversal, which, under the same rules, counts as bullish. Those opposing DI signals create short‑term directional conflict while ADX signals trend absence.
MACD sits at -1.10 with a decreasing trend while the MACD signal reads -0.09; negative and declining MACD points to bearish momentum and no bullish MACD cross above the signal line has occurred to offset that momentum bias.
MRO reads 8.16 and trends downward; a positive MRO indicates price currently sits above the model target, implying modest downside potential, and the declining MRO reduces that downside potential only gradually.
RSI at 50.81 with a decreasing trend shows loss of short‑term upside momentum without reaching oversold levels, supporting a view of muted volatility rather than a sharp mean reversion.
Price sits below the 20‑day and 50‑day averages (20‑day $151.68, 50‑day $152.54) while remaining above the 200‑day average ($118.81); short EMAs decline (12‑day EMA falling), placing near‑term bias toward lower trading ranges with structural long‑term support from the 200‑day average. Bollinger bands place the one‑sigma lower band at $147.17 and the one‑sigma upper band at $156.19, with the last close near the lower band, which can act as intra‑session support but not a trend reversal signal. Short‑term beta at 2.39 signals above‑average volatility into holiday trading. SuperTrend upper at $160.88 acts as a clear resistance level above current price.
Fundamental Analysis
Revenue and profitability: Total revenue reached $1,026,847,000 with revenue growth at 5.80% and year‑over‑year revenue growth reported as 158.83%. Gross margin at 33.34% expanded 1.83 percentage points YoY, while operating margin stands at 5.10% (up 1.98 percentage points YoY but down 2.65% QoQ). Operating margin at 5.1% sits slightly above the industry peer low and below the industry peer mean and median, indicating margin recovery that still trails typical peers.
Earnings and cash flow: GAAP EPS came in at $0.77 versus an estimate of $0.61, producing an EPS surprise of $0.16, roughly a 26.23% beat. Operating cash flow totaled $92,996,000 with free cash flow of $48,277,000 and a free cash flow yield of 0.67%, which falls below the industry peer mean and median, suggesting limited cash return relative to current price.
Leverage and coverage: Total debt measures $2,018,626,000, debt‑to‑assets at 43.82% sits marginally above the industry peer mean, while debt‑to‑equity at 1.06 sits below the industry peer mean. Debt‑to‑EBITDA reads 20.18 and interest coverage stands at 14.36x; coverage remains healthy, but the elevated debt‑to‑EBITDA ratio indicates leverage appears stretched relative to earnings.
Efficiency and returns: Asset turnover of 0.2267 remains below the industry peer mean and median, and inventory turnover at 0.9116 trails peers, pointing to slower inventory velocity. Return on equity registers at 2.24% and return on assets at 0.94%, both below peer medians, reflecting low current capital efficiency despite top‑line growth.
Valuation context: Price multiples show P/E at 158.73 and forward P/E near 99.71, both materially above the industry peer mean and median; price‑to‑book at 3.78 sits below the industry peer mean but above the median. Enterprise multiple stands at 85.58, above the industry peer mean. WMDST values the stock as over‑valued given these multiple premiums versus fundamentals, especially elevated P/E and enterprise multiples relative to earnings and cash flow yields.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-08-27 |
| NEXT REPORT DATE: | 2025-12-03 |
| CASH FLOW | Begin Period Cash Flow | $ 427.5 M |
| Operating Cash Flow | $ 93.0 M | |
| Capital Expenditures | $ -44.72 M | |
| Change In Working Capital | $ -9.02 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 135.3 M | |
| End Period Cash Flow | $ 562.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.0 B | |
| Forward Revenue | $ 401.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 684.5 M | |
| Depreciation | $ 47.7 M | |
| Depreciation and Amortization | $ 47.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 974.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 342.4 M | |
| EBITDA | $ 100.1 M | |
| EBIT | $ 52.4 M | |
| Operating Income | $ 52.4 M | |
| Interest Income | $ 5.5 M | |
| Interest Expense | — | |
| Net Interest Income | $ 5.5 M | |
| Income Before Tax | $ 57.9 M | |
| Tax Provision | $ 15.1 M | |
| Tax Rate | 26.151 % | |
| Net Income | $ 42.8 M | |
| Net Income From Continuing Operations | $ 42.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.61 | |
| EPS Actual | $ 0.77 | |
| EPS Difference | $ 0.16 | |
| EPS Surprise | 26.23 % | |
| Forward EPS | $ 1.21 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.6 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 1.9 B | |
| Total Current Assets | $ 1.6 B | |
| Cash and Short-Term Investments | $ 670.2 M | |
| Cash | $ 562.7 M | |
| Net Receivables | — | |
| Inventory | $ 799.6 M | |
| Long-Term Investments | $ 21.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 371.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 924.6 M | |
| Net Debt | — | |
| Total Debt | $ 2.0 B | |
| Total Liabilities | $ 2.7 B | |
| EQUITY | ||
| Total Equity | $ 1.9 B | |
| Retained Earnings | $ 1.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 34.59 | |
| Shares Outstanding | 55.146 M | |
| Revenue Per-Share | $ 18.62 | |
| VALUATION | Market Capitalization | $ 7.2 B |
| Enterprise Value | $ 8.6 B | |
| Enterprise Multiple | 85.579 | |
| Enterprise Multiple QoQ | 30.323 % | |
| Enterprise Multiple YoY | 37.993 % | |
| Enterprise Multiple IPRWA | FIVE: 85.579 high: 72.281 mean: 48.279 median: 46.609 low: 17.483 |
|
| EV/R | 8.339 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.415 | |
| Asset To Liability | 1.707 | |
| Debt To Capital | 0.514 | |
| Debt To Assets | 0.438 | |
| Debt To Assets QoQ | -1.208 % | |
| Debt To Assets YoY | 596.677 % | |
| Debt To Assets IPRWA | high: 0.549 FIVE: 0.438 mean: 0.414 median: 0.35 low: 0.345 |
|
| Debt To Equity | 1.058 | |
| Debt To Equity QoQ | -0.433 % | |
| Debt To Equity YoY | 574.054 % | |
| Debt To Equity IPRWA | high: 2.13 mean: 1.426 median: 1.295 FIVE: 1.058 low: 0.884 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.782 | |
| Price To Book QoQ | 39.293 % | |
| Price To Book YoY | 16.471 % | |
| Price To Book IPRWA | high: 7.904 mean: 5.05 FIVE: 3.782 median: 2.988 low: 0.32 |
|
| Price To Earnings (P/E) | 158.733 | |
| Price To Earnings QoQ | 48.958 % | |
| Price To Earnings YoY | -9.698 % | |
| Price To Earnings IPRWA | FIVE: 158.733 high: 138.093 mean: 77.72 median: 58.392 low: 8.181 |
|
| PE/G Ratio | -27.302 | |
| Price To Sales (P/S) | 7.026 | |
| Price To Sales QoQ | 35.138 % | |
| Price To Sales YoY | 11.691 % | |
| Price To Sales IPRWA | high: 8.195 FIVE: 7.026 mean: 4.434 median: 2.231 low: 0.354 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 99.713 | |
| Forward PE/G | -17.151 | |
| Forward P/S | 17.972 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.514 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.227 | |
| Asset Turnover Ratio QoQ | 2.682 % | |
| Asset Turnover Ratio YoY | 8.698 % | |
| Asset Turnover Ratio IPRWA | high: 0.442 median: 0.384 mean: 0.38 low: 0.262 FIVE: 0.227 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 0.912 | |
| Inventory Turnover Ratio QoQ | -4.021 % | |
| Inventory Turnover Ratio YoY | 3.679 % | |
| Inventory Turnover Ratio IPRWA | high: 1.516 median: 1.381 mean: 1.331 FIVE: 0.912 low: 0.656 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.555 | |
| CapEx To Revenue | -0.044 | |
| CapEx To Depreciation | -0.938 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.9 B | |
| Net Invested Capital | $ 1.9 B | |
| Invested Capital | $ 1.9 B | |
| Net Tangible Assets | $ 1.9 B | |
| Net Working Capital | $ 660.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.725 | |
| Current Ratio | 1.714 | |
| Current Ratio QoQ | 0.273 % | |
| Current Ratio YoY | 4.996 % | |
| Current Ratio IPRWA | FIVE: 1.714 high: 1.577 median: 1.253 mean: 1.239 low: 0.99 |
|
| Quick Ratio | 0.849 | |
| Quick Ratio QoQ | -5.077 % | |
| Quick Ratio YoY | 21.558 % | |
| Quick Ratio IPRWA | high: 0.983 FIVE: 0.849 mean: 0.519 median: 0.32 low: 0.188 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 20.175 | |
| Cost Of Debt | 0.135 % | |
| Interest Coverage Ratio | 14.358 | |
| Interest Coverage Ratio QoQ | 2.985 % | |
| Interest Coverage Ratio YoY | 26.153 % | |
| Interest Coverage Ratio IPRWA | high: 85.038 mean: 35.176 FIVE: 14.358 median: 11.5 low: 3.577 |
|
| Operating Cash Flow Ratio | 0.095 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 45.744 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.453 % | |
| Revenue Growth | 5.803 % | |
| Revenue Growth QoQ | -119.201 % | |
| Revenue Growth YoY | 158.831 % | |
| Revenue Growth IPRWA | high: 10.916 % mean: 5.819 % FIVE: 5.803 % median: 5.724 % low: -1.494 % |
|
| Earnings Growth | -5.814 % | |
| Earnings Growth QoQ | -92.278 % | |
| Earnings Growth YoY | -41.86 % | |
| Earnings Growth IPRWA | high: 57.692 % median: 6.122 % mean: 5.372 % FIVE: -5.814 % low: -1138.462 % |
|
| MARGINS | ||
| Gross Margin | 33.342 % | |
| Gross Margin QoQ | -0.099 % | |
| Gross Margin YoY | 1.829 % | |
| Gross Margin IPRWA | high: 43.288 % FIVE: 33.342 % mean: 29.934 % median: 28.987 % low: 27.617 % |
|
| EBIT Margin | 5.1 % | |
| EBIT Margin QoQ | -2.653 % | |
| EBIT Margin YoY | 1.98 % | |
| EBIT Margin IPRWA | high: 12.273 % mean: 7.618 % median: 5.55 % FIVE: 5.1 % low: 5.063 % |
|
| Return On Sales (ROS) | 5.1 % | |
| Return On Sales QoQ | -2.653 % | |
| Return On Sales YoY | 1.98 % | |
| Return On Sales IPRWA | high: 11.544 % mean: 7.325 % median: 5.55 % FIVE: 5.1 % low: 4.54 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 48.3 M | |
| Free Cash Flow Yield | 0.669 % | |
| Free Cash Flow Yield QoQ | -65.01 % | |
| Free Cash Flow Yield YoY | -207.903 % | |
| Free Cash Flow Yield IPRWA | high: 2.359 % median: 2.212 % mean: 1.772 % low: 1.03 % FIVE: 0.669 % |
|
| Free Cash Growth | -49.948 % | |
| Free Cash Growth QoQ | -27.639 % | |
| Free Cash Growth YoY | 5.522 % | |
| Free Cash Growth IPRWA | high: 130.623 % median: 1.525 % mean: -48.054 % FIVE: -49.948 % low: -351.485 % |
|
| Free Cash To Net Income | 1.129 | |
| Cash Flow Margin | 8.589 % | |
| Cash Flow To Earnings | 2.063 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.944 % | |
| Return On Assets QoQ | 0.855 % | |
| Return On Assets YoY | 13.872 % | |
| Return On Assets IPRWA | high: 3.528 % mean: 2.128 % median: 1.64 % low: 1.132 % FIVE: 0.944 % |
|
| Return On Capital Employed (ROCE) | 1.422 % | |
| Return On Equity (ROE) | 0.022 | |
| Return On Equity QoQ | 1.219 % | |
| Return On Equity YoY | 9.206 % | |
| Return On Equity IPRWA | high: 0.089 mean: 0.067 median: 0.061 low: 0.039 FIVE: 0.022 |
|
| DuPont ROE | 2.271 % | |
| Return On Invested Capital (ROIC) | 2.028 % | |
| Return On Invested Capital QoQ | 1.807 % | |
| Return On Invested Capital YoY | -104.963 % | |
| Return On Invested Capital IPRWA | high: 7.091 % mean: 4.433 % median: 3.312 % low: 2.723 % FIVE: 2.028 % |
|