Five Below (FRA:6F1) Operating Margin %: 12.00% (As of Apr. 2026) — Near Median


FRA:6F1 Five Below Inc FRA:6F1
97 GF Score
Price €163.10
GF Value €173.65
Valuation Fairly Valued
! 1 Warning Sign
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What is Five Below Operating Margin %?

Five Below FRA:6F1 -0.34% 97 Operating Margin % is 12.00% as of Apr. 2026, which is 6% above its 10-year median of 11.31. GuruFocus rates FRA:6F1 with a GF Score™ of 97/100 and a GF Value™ of €173.65 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,128 Retail - Cyclical companies, Five Below ranks better than 80.85% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Five Below's Operating Income for the three months ended in Apr. 2026 was €132 Mil. Five Below's Revenue for the three months ended in Apr. 2026 was €1,099 Mil. Therefore, Five Below's Operating Margin % for the quarter that ended in Apr. 2026 was 12.00%.

Warning Sign:

Five Below Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.3%.

The historical rank and industry rank for Five Below's Operating Margin % or its related term are showing as below:

FRA:6F1' s Operating Margin % Range Over the Past 10 Years
Min: 7.89   Med: 11.31   Max: 13.34
Current: 11.04


FRA:6F1's Operating Margin % is ranked better than
80.85% of 1128 companies
in the Retail - Cyclical industry
Industry Median: 3.905 vs FRA:6F1: 11.04

Five Below's 5-Year Average Operating Margin % Growth Rate was -1.30% per year.

Five Below's Operating Income for the three months ended in Apr. 2026 was €132 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €479 Mil.


Five Below  (FRA:6F1) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Five Below Operating Margin % Related Terms


Five Below Operating Margin % Historical Data

* Premium members only.

The historical data trend for Five Below's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Five Below Operating Margin % Chart

Five Below Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.34 11.22 10.83 8.35 9.60

Five Below Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.24 5.10 4.17 17.99 12.00

FRA:6F1 vs GME, MUSA, BBY: Operating Margin % Comparison

For the Specialty Retail subindustry, Five Below's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Five Below Operating Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Five Below's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Five Below's Operating Margin % falls into.


FRA:6F1
97GF Score
Five Below Inc FRA:6F1
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Five Below Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Five Below's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=389.247 / 4054.289
=9.60 %

Five Below's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2026 ) / Revenue (Q: Apr. 2026 )
=131.878 / 1099.19
=12.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 12.00% mean?
Five Below (FRA:6F1) has a Operating Margin % of 12.00% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Five Below and its competitors. This is near median its historical median of 11.31. Over the past decade, Five Below's Operating Margin % has ranged from 7.89 to 13.34. According to the industry distribution chart, Five Below ranks #216 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 19.1%.
Is Five Below's Operating Margin % too high?
Five Below's current Operating Margin % of 12.00% is near median its 10-year median of 11.31. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 13.34. The Retail - Cyclical industry median Operating Margin % is 3.91. Five Below's value of 12.00% is 207.3% above this industry median. Based on the distribution chart, Five Below ranks #216 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Five Below has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Five Below's Operating Margin % compare to GME and MUSA?
According to the Retail - Cyclical industry distribution chart, Five Below ranks #216 out of 1128 companies for Operating Margin %. This places Five Below in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Five Below's value of 12.00% is 207.3% above this benchmark. Historically, Five Below's own Operating Margin % has ranged from 7.89 to 13.34 over the past decade. While the company's 10-year median is 11.31 vs. the industry median of 3.91, Five Below has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Five Below's current Operating Margin % of 12.00% is 207.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Five Below and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Five Below's current Operating Margin % is 12.00%, which is near median its own 10-year median of 11.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Five Below stock overvalued right now?
Based on GuruFocus' analysis, Five Below (FRA:6F1) is currently considered Fairly Valued. The stock's GF Value™ is €173.65, compared to a current price of €163.10 — trading 6.1% below its estimated fair value. The current Operating Margin % is 12.00%, which is near median its 10-year median of 11.31 and 207.3% above the Retail - Cyclical industry median of 3.91. Five Below's overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Five Below (FRA:6F1), the current Operating Margin % is 12.00% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Five Below (FRA:6F1) Overvalued in 2026?

Based on GuruFocus' analysis, Five Below stock appears to be undervalued. The current stock price of €163.10 is trading 6.1% below its estimated GF Value™ of €173.65. GuruFocus considers Five Below to be Fairly Valued.

Key valuation signals for FRA:6F1:

  • Operating Margin %: 12.00% (near median its 10-year median of 11.31)
  • GF Value™: €173.65 vs. price of €163.10 (6.1% below fair value)
  • GF Score™: 97/100 with 1 warning sign
  • Industry Position: 207.3% above the Retail - Cyclical median (#216 of 1128)

No single metric tells the full story. See the FRA:6F1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Five Below Business Description

Address 701 Market Street, Suite 300, Philadelphia, PA, USA, 19106
Five Below Inc is a specialty value retailer offering a broad range of trend-right, high-quality products loved by the kid and the kid in all of customers. The Company's edited assortment of products includes select brands and licensed merchandise. The Company also sells its merchandise on the internet, through the Company's e-commerce website and mobile app, offering home delivery and the option to buy online and pick up in store. Additionally, the Company sells merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery. It derives revenue from sales of the Company's merchandise to customers.
97GF Score

Get the complete analysis for FRA:6F1

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€163.10
Price
€173.65
GF Value