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Is this Large Market Cap Stock target price reasonable for Five Below, Inc. (NASDAQ:FIVE)?

The company in question is, Five Below, Inc. (NASDAQ:FIVE) currently with a stock price of 37.55 (-1.44% today). The market cap for Five Below, Inc. is 2061.97, and is in the sector Services, and Specialty Retail, Other industry. The target price for Five Below, Inc. is 50.08. Currently Five Below, Inc. is trading with a P/E of 33.13, and a forward P/E of 23.64. Average volume for Five Below, Inc. is 1040.42 and so far today it is 421641.

Performance in the last year for Five Below, Inc. has been 13.36%. For EPS growth, Five Below, Inc. has seen a growth of 19.70%, and is looking to grow in the next year to 22.59%. More long term stats show that EPS growth has been 135.10% over the last five years and could be 23.58% for the next five years. Five Below, Inc. has seen sales growth quarter over quarter at 20.80%, with EPS growth quarter over quarter at 39.70%. The 20-day simple moving average is -14.24%, with the 200-day simple moving average coming to -9.35%.

Since the IPO date for Five Below, Inc. on the 7/19/2012, Five Below, Inc. has seen performance year to date to be 18.69%. With Five Below, Inc. trading at 37.55, the dividend yield is *TBA, and the EPS is 1.15.

So could Five Below, Inc., be undervalued? Well as said before P/E is 33.13. The PEG is 1.4, P/S is 2.27 and the P/B is at 7.74. The P/cash is 21.48, with P/free cash flow at 63.25.

Five Below, Inc. ability to deal with debt shows that the current ratio is 2.8, and the quick ratio is 1.2. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Five Below, Inc. has a gross margin of 35.10%, an operating margin of 11.10% and a profit margin of 6.90%.Payout ratio for Five Below, Inc. is 0.00%. Return on assets come to 15.70% with return on investment coming to 23.70%.

Insider ownership for Five Below, Inc., is at 0.70% and institutional ownership comes to *TBA. Outstanding shares are at 54.12. While shares float is 53.57. The float short is currently 15.03%, and short ratio is 7.74.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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