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What Sets Five Below Inc. Apart From Other American Businesses? Part 2 | Value Investor Chatter | #98

Value Investor Chatter
Value Investor Chatter
Episode • Apr 14, 2020 • 28m

What sets Five Below Inc. apart from other American businesses? Five Below is a unique company that operates differently than most American businesses. Their focus on offering products for $5 or less has helped them succeed where others have failed. If you're interested in stocks, Five Below is a company you should keep an eye on. Five Below has been able to grow rapidly because of their focus on a niche market. Most American businesses try to be all things to all people, but Five Below has found success by appealing to a specific group of consumers. If you're looking for a company that is doing things differently and succeeding, then you should check out Five Below.

Episode Outline

(00:00) Introduction

(01:39) Is the Company able to Translate its moat into high returns on capital?

(05:05) Does the company have enough cash to maintain its business?

(07:08) Numbers around the percentage of revenue coming from online business.

(09:06) Can the company generate a strong amount of free cash flow from operations?

(10:49) E-Commerce as a Strategy

(12:47) Management of the Company

(17:57) Valuation

(21:24) Competitive Advantage

(23:43) Debt

(27:08) Conclusion


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