FIVE (Five Below Inc) vs S&P 500 Comparison

FIVE

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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FIVE

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

FIVE

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

FIVE

TSCO

ULTA

DKS

601888

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Five Below Inc
Glance View

Market Cap

5.5B USD

Industry

Retail

Five Below Inc., born from the vision of David Schlessinger and Tom Vellios in 2002, is a retail phenomenon that carved its niche by delighting the budget-conscious shopper with a twist of youthful exuberance. Headquartered in Philadelphia, the chain emerged with a unique proposition: offering a treasure trove of products all under five dollars, originally targeting the elusive teenage demographic. What sets Five Below apart is its vibrant, ever-evolving array of merchandise ranging from fashion and beauty products to tech gadgets, toys, and seasonal decor. By cultivating an atmosphere where shopping is an adventure, their stores invite customers to explore and discover, effectively enticing them to make impulse purchases. This strategy is elevated by a dynamic store environment with lively colors and catchy signage, creating a sensory retail experience. At the heart of Five Below's business model lies an astute and agile supply chain, allowing them to stay ahead of trends at a price point that's hard to beat. The company collaborates closely with vendors to source products that resonate with their demographic's current desires, often capitalizing on fleeting trends or seasonal demands. This adds to the immediacy and relevance of their product offering. Furthermore, Five Below's carefully crafted pricing strategy is not just a hook; it leverages economies of scale and vendor negotiations to maintain margins while keeping the price floor genuinely appealing. While expanding their presence rapidly across the United States, they also tap into a broad customer base that includes not only young shoppers but also their families, transcending the initial teenage market and establishing itself as a vital player in the discount retail space.

View FIVE Analysis

FIVE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US		Tractor Supply Co NASDAQ:TSCO	Select
US		Ulta Beauty Inc NASDAQ:ULTA	Select
US		DICK'S Sporting Goods Inc NYSE:DKS	Select
CN		China Tourism Group Duty Free Corp Ltd SSE:601888	Select
CN		Pop Mart International Group Ltd HKEX:9992	Select
HK		Chow Tai Fook Jewellery Group Ltd HKEX:1929	Select
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JP		Sanrio Co Ltd TSE:8136	Select
US		Bath & Body Works Inc NYSE:BBWI	Select
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US		Tractor Supply Co NASDAQ:TSCO	Add
US		Ulta Beauty Inc NASDAQ:ULTA	Add
US		DICK'S Sporting Goods Inc NYSE:DKS	Add
CN		China Tourism Group Duty Free Corp Ltd SSE:601888	Add
CN		Pop Mart International Group Ltd HKEX:9992	Add
HK		Chow Tai Fook Jewellery Group Ltd HKEX:1929	Add
NL	G	Grandvision NV F:8GV	Add
JP		Sanrio Co Ltd TSE:8136	Add
US		Bath & Body Works Inc NYSE:BBWI	Add
UK		JD Sports Fashion PLC LSE:JD	Add

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FIVE

vs

S&P 500

Stocks Performance
FIVE vs S&P 500

Performance Gap
FIVE vs S&P 500

Performance By Year
FIVE vs S&P 500

Competitors Performance
Five Below Inc vs Peers

Five Below Inc
Glance View

Company

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FIVE vs S&P 500

Stocks Performance FIVE vs S&P 500

Performance Gap FIVE vs S&P 500

Performance By Year FIVE vs S&P 500

Competitors Performance Five Below Inc vs Peers

Five Below Inc Glance View

Company

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Stocks

FIVE

vs

S&P 500

Stocks Performance
FIVE vs S&P 500

Performance Gap
FIVE vs S&P 500

Performance By Year
FIVE vs S&P 500

Competitors Performance
Five Below Inc vs Peers

Five Below Inc
Glance View