Five Below Beneish M Score

FIVE
 Stock
  

USD 138.56  0.95  0.69%   

This module uses fundamental data of Five Below to approximate the value of its Beneish M Score. Five Below M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Five Below Piotroski F Score and Five Below Altman Z Score analysis.
  
The current year Long Term Debt to Equity is expected to grow to 0.005363, whereas Total Debt is forecasted to decline to about 1.3 B.
At this time, it appears that Five Below is an unlikely manipulator. The earnings manipulation may begin if Five Below's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Five Below executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Five Below's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.56
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset Quality1.36Focus
Expense Coverage1.01Focus
Gross Margin Strengs1.02Focus
Accruals Factor1.01Focus
Depreciation Resistance0.87Focus
Net Sales Growth0.65Focus
Financial Leverage Condition1.27Focus

Five Below Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Five Below's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.9 B2.8 B
Way Down
Increasing
Slightly volatile
Selling General and Administrative Expense427 M650.6 M
Way Down
Increasing
Slightly volatile
Net Cash Flow from Operations204.9 M327.9 M
Way Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion53.7 M84.8 M
Way Down
Increasing
Slightly volatile
Total Assets1.7 B2.9 B
Way Down
Increasing
Slightly volatile
Investments239.9 M314.9 M
Way Down
Increasing
Slightly volatile
Investments Current220 M277.1 M
Significantly Down
Increasing
Slightly volatile
Investments Non Current37.5 M43.4 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.1 B1.9 B
Way Down
Increasing
Slightly volatile
Total Liabilities989.5 M1.8 B
Way Down
Increasing
Slightly volatile
Current Assets580.9 M904.7 M
Way Down
Increasing
Slightly volatile
Assets Non Current1.1 BB
Way Down
Increasing
Slightly volatile
Current Liabilities350.7 M586.9 M
Way Down
Increasing
Slightly volatile
Liabilities Non Current638.8 M1.2 B
Way Down
Increasing
Slightly volatile
Total Debt1.3 B1.3 B
Fairly Down
Increasing
Slightly volatile
Debt Current161.4 M163.5 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current1.1 B1.1 B
Fairly Down
Increasing
Slightly volatile
Operating Income240.5 M379.9 M
Way Down
Increasing
Slightly volatile
Gross Margin0.370.362
Fairly Up
Increasing
Slightly volatile

Five Below Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Five Below's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Five Below in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Five Below's degree of accounting gimmicks and manipulations.

About Five Below Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

53.7 Million

Five Below Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 84.83 Million

About Five Below Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Five Below's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Five Below using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Five Below based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Five Below, Inc. operates as a specialty value retailer in the United States. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania. Five Below operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 6100 people.

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Please check Five Below Piotroski F Score and Five Below Altman Z Score analysis. Note that the Five Below information on this page should be used as a complementary analysis to other Five Below's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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When running Five Below price analysis, check to measure Five Below's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Five Below is operating at the current time. Most of Five Below's value examination focuses on studying past and present price action to predict the probability of Five Below's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Five Below's price. Additionally, you may evaluate how the addition of Five Below to your portfolios can decrease your overall portfolio volatility.
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Is Five Below's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Five Below. If investors know Five Below will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Five Below listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.33
Market Capitalization
7.7 B
Quarterly Revenue Growth YOY
0.07
Return On Assets
0.0829
Return On Equity
0.26
The market value of Five Below is measured differently than its book value, which is the value of Five Below that is recorded on the company's balance sheet. Investors also form their own opinion of Five Below's value that differs from its market value or its book value, called intrinsic value, which is Five Below's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Five Below's market value can be influenced by many factors that don't directly affect Five Below's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Five Below's value and its price as these two are different measures arrived at by different means. Investors typically determine Five Below value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Five Below's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.