Five Below Price to Book vs. Price to Sales

FIVE
 Stock
  

USD 160.83  0.80  0.49%   

For Five Below profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Five Below to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Five Below utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Five Below's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Five Below over time as well as its relative position and ranking within its peers. Please check Investing Opportunities.
  
Five Below Return on Sales is projected to increase slightly based on the last few years of reporting. The past year's Return on Sales was at 0.11. Five Below Net Income Common Stock is projected to increase significantly based on the last few years of reporting. The past year's Net Income Common Stock was at 48 Million. The current year Preferred Dividends Income Statement Impact is expected to grow to about 18.5 K, whereas Operating Income is forecasted to decline to about 240.5 M.

Five Below Revenues

1.86 Billion

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
(0.36) 
Market Capitalization
B
Quarterly Revenue Growth YOY
0.035
Return On Assets
0.0719
Return On Equity
0.22
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.

Five Below Price to Sales vs. Price to Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Five Below's current stock value. Our valuation model uses many indicators to compare Five Below value to that of its competitors to determine the firm's financial worth.
Five Below is rated # 5 in price to book category among related companies. It is rated # 4 in price to sales category among related companies fabricating about  0.40  of Price to Sales per Price to Book. The ratio of Price to Book to Price to Sales for Five Below is roughly  2.51 . The current year Price to Sales Ratio is expected to grow to 3.29. Comparative valuation analysis is a catch-all model that can be used if you cannot value Five Below by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Five Below's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Five Below's earnings, one of the primary drivers of an investment's value.

Five Below Price to Sales vs. Price to Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Five Below 
P/B 
 = 
MV Per Share 
BV Per Share 
7.72 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Five Below 
P/S 
 = 
MV Per Share 
Revenue Per Share 
3.08 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Five Below Price to Sales Comparison

Five Below is currently under evaluation in price to sales category among related companies.

Five Below Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Five Below, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Five Below will eventually generate negative long term returns. The profitability progress is the general direction of Five Below's change in net profit over the period of time. It can combine multiple indicators of Five Below, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Consolidated Income48 M71.4 M
Net Income278.8 M172 M
Net Income Common Stock48 M66.6 M
Operating Income379.9 M240.5 M
Preferred Dividends Income Statement Impact18 K18.5 K
Income Tax Expense28.6 M33.9 M
Net Income Per Employee13.8 K11.1 K

Five Below Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Five Below. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Five Below position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Five Below's important profitability drivers and their relationship over time.

Use Five Below in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Five Below position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Five Below will appreciate offsetting losses from the drop in the long position's value.

Five Below Pair Trading

Five Below Pair Trading Analysis

The ability to find closely correlated positions to Five Below could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Five Below when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Five Below - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Five Below to buy it.
The correlation of Five Below is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Five Below moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Five Below moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Five Below can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Five Below position

In addition to having Five Below in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Books Thematic Idea Now

Books
Books Theme
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Books Theme or any other thematic opportunities.
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Please check Investing Opportunities. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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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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To fully project Five Below's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Five Below at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Five Below's income statement, its balance sheet, and the statement of cash flows.
Potential Five Below investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Five Below investors may work on each financial statement separately, they are all related. The changes in Five Below's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Five Below's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.