Five Below, Inc. cash flow to debt ratio of 28.86% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Five Below, Inc.'s free cash flow has increased 286.00% from $106.65M last year to $411.69M, signaling increasing performance

Five Below, Inc.'s debt to equity ratio is 0.86, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Five Below, Inc.'s debt has decreased relative to shareholder equity from 1.10 last year to 0.86 today, signaling strengthened financials

Five Below, Inc. has a net debt to EBITDA ratio of 1.95x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Five Below, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Five Below, Inc.'s profit margin has increased (32.58%) in the last year from 6.54% to 8.67%, signaling increasing performance

Five Below, Inc.'s short-term assets of $1.92G exceed its short-term liabilities of $954.01M

Five Below, Inc.'s return on assets of 8.72% is higher than the 5.00% threshold, indicating efficient asset utilization

Five Below, Inc.'s return on equity of 21.07%, is higher than 15.00%, indicating good performance

Five Below, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Five Below, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Five Below, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Five Below, Inc. has a free cash flow yield of 3.95%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Five Below, Inc.'s yearly earnings has increased 41.41% since last year from $253.61M to $358.64M, signaling increasing performance

Five Below, Inc.'s yearly revenue has increased 22.90% since last year from $3.88G to $4.76G, signaling increasing performance

ROIC 9.64% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Five Below, Inc.'s 3-year revenue CAGR of 15.70% is positive, indicating growing revenue over the past 3 years

Five Below, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Five Below, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Five Below, Inc. is overvalued relative to its fair value price of 108.61 based on Discounted Cash Flow model

Five Below, Inc. has an earnings yield of 4.23%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Five Below, Inc. is overvalued relative to its fair value price of 58.63 based on EBITDA multiple model

Five Below, Inc. has an EV/EBITDA ratio of 15.04x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Five Below, Inc. is overvalued relative to its fair value price of 168.44 based on Earnings Fair Value model

Five Below, Inc. has a PEG-ratio under 1 which is considered undervalued

Five Below, Inc. has a price-to-book ratio of 4.50x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Five Below, Inc. has a price-to-sales ratio of 2.05x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue