Five Below FIVE
Five Below scores excellent on business quality (8.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Five Below does
Five Below operates extreme-value specialty stores targeting teens and tweens with trend-right merchandise priced mostly between $1 and $5, plus higher-priced 'Five Beyond' items up to $25. Customers pay cash for novelty items, toys, and tech accessories.
- What it does best
Five Below excels at extreme-value merchandising for young consumers, posting a revenue growth rate of 22.9% that places it in the top decile of its sector at the 91st percentile. This rapid expansion relies on a treasure-hunt store experience that is difficult for traditional big-box rivals to replicate.
- The main risk
Recent share price weakness, including a 7.8% drop following its earnings report, highlights vulnerability to execution missteps in store rollouts and shifting consumer discretionary spending among lower-income households.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 14.8% with an ROE of 27.7%, showing solid return on equity as the store base scales nationwide.
A brand built on extreme value locks in budget-conscious younger shoppers, ranking in the 48th percentile for gross margin.
Revenue growth hit 22.9% last year, powered by aggressive new store openings and expanding the Five Beyond product tier.
The balance sheet is pristine with zero debt and $932 million in cash, supporting $599 million in free cash flow that gets stronger every year.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
5 sold $5.6M outside pre-planned sales.
Our sealed record on FIVE
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Five Below scores excellent on the Cluenex quality check (8.0 of 10), measured against its own industry. Profitability is fair, moat fair, growth fast and financial health strong.
In the last 90 days of SEC Form 4 filings: 5 sold $5.6M outside pre-planned sales.
Dec 1, 2026.
See FIVE today
- Today's verdict on FIVE, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Five Below (FIVE)”, https://cluenex.com/stocks/five/, data as of Oct 10, 2026.