FIVE
Five Below Inc.
Consumer
04/29/2014
Presented
| Date | 04/24/2014 |
| Price | $38.36 |
| Market Cap | $2.08B |
| Ent Value | $2.05B |
| P/E Ratio | 40.14x |
| Book Value | $2.55 |
| Div Yield | N/A |
| Shares O/S | 54.19M |
| Ave Daily Vol | 10,900,000 |
| Short Int | 18.79% |
Current
| Price | $93.60 |
| Market Cap | $5.15B |
| Five Below, Inc. operates as a specialty value retailer in the United States. The company offers various products priced at $5 and below. It offers accessories, such as novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, and ‘attitude’ T-shirts, as well as beauty products, including nail polish, lip gloss, fragrance, and branded cosmetics; and items used to complete and personalize living space comprising glitter lamps, posters, frames, fleece blankets, pillows, candles, incense and related items, and storage options for the customer’s room and locker. The company also provides sport balls; team sports merchandise and fitness accessories, including hand weights, jump ropes, and gym balls; games comprising name brand board games, puzzles, toys, and plush items; and pool, beach and outdoor toys, games, and accessories. In addition, it offers accessories for PCs, cell phones, MP3 players, and tablet computers; cases, chargers, headphones, and other related items; and books, video games, and DVDs. Further, the company provides craft activity kits; arts and crafts supplies, such as crayons, markers, and stickers; trend-right items for school comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and everyday name brand items; and party goods, decorations, and greeting cards, as well as every day and special occasion merchandise. Additionally, it offers assortment of classic and novelty candy bars, and movie-size box candy, as well as gum and snack food; chilled drinks through coolers; and seasonally-specific items used to celebrate and decorate for events, such as Christmas, Easter, Halloween, and St. Patrick’s Day. As of February 1, 2014, Five Below, Inc. operated 304 stores under the Five Below name. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was founded in 2002 and is headquartered in Philadelphia, Pennsylvania. |
Highlights
Shares of Five Below (FIVE) have underperformed year-to-date (down ~10%) and despite reaching the mid $50s over the past year, the stock is flat. The presenter is short at present levels (~$38) and while relatively high short interest is a potential risk if news flow is positive and bears have to cover, he likes the risk/ reward and set up. FIVE recently put up 4th quarter results that were not as bad as expected ($0.59 cents in annual EPS for 2014), and the stock rallied to the low $40s; however, the optimism appears to have waned on inventory concerns and competition.
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