FIVE

Five Below Inc

Consumer


Presented:06/20/2023
Price:$193.26
Cap:$10.76B
Current Price:$93.60
Cap:$5.15B

Presented

Date06/20/2023
Price$193.26
Market Cap$10.76B
Ent Value$12.10B
P/E Ratio40.48x
Book Value$24.92
Div Yield0%
Shares O/S55.66M
Ave Daily Vol784,043
Short Int7.74%

Current

Price$93.60
Market Cap$5.15B
Five Below, Inc. operates as a specialty value retailer. It operates through the following segments: Leisure, Fashion and Home, and Party and Snack. The Leisure segment includes items such as sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts. The Fashion and Home segment consists of personal accessories, “attitude” t-shirts, beauty offerings, home goods, and storage options. The Party and Snack segment offers party and seasonal goods, greeting cards, candy, and other snacks and beverages. The company was founded by David Schlessinger and Thomas G. Vellios in January 2002 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Five Below Inc (FIVE)

Highlights

The presenter is long shares of Five Below Inc (FIVE), a specialty value retailer known for its assortment of $5 or below merchandise. FIVE has some aspects of a dollar store, but the presenter considers it a less discretionary competitor of toy stores. There is a unit expansion story underway with a significant store opening runway and an industry-leading payback period of less than one year. His 2023 outlook is roughly in line with management guidance and Street expectations of 200 store openings and LSD% comp growth, but he sees 30% upside from the current $193 share price, mostly due to operating leverage from new store openings that drives margins above Street estimates in the out years.

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Idea Discussion

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