Report
John Brick, CFA
EUR 101.80 For Business Accounts Only

Five Below's Value Proposition Drives Traffic But Little Upside To Shares

Narrow-moat Five Below’s fourth-quarter results offered few surprises, as its 28% top-line growth and 12.3% operating margin (including a 53rd week) placed the firm within our full-year 2017 expectations of 27% and 12.4%, respectively. Further, we saw little to prompt a major change to our long-term assumptions (15% average top-line growth and 12% average operating margins over the next decade), leaving our $66 fair value relatively unscathed outside of the time value of money. With shares tradi...
Underlying
Five Below Inc.

Five Below is a retailer providing a range of merchandise targeted at the tween and teen demographic. The company provides an assortment of products, all priced at $5 and below, including select brands and licensed merchandise across eight worlds: Style, Room, Sports, Tech, Create, Party, Candy and Now. The company operates in states that include Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Massachusetts, New Hampshire, West Virginia, North Carolina, New York, Connecticut, Rhode Island, Ohio, Illinois, Indiana, Michigan, Missouri, Georgia, Texas, Tennessee, Maine, Alabama, Kentucky, Kansas, Florida, South Carolina, Mississippi, Louisiana, Wisconsin, Oklahoma, Minnesota, California and Arkansas.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
John Brick, CFA

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