5N Plus Inc (TSE:VNP)
TSX:VNP
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5N Plus
(TSX:VNP)
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Rating:76Outperform
Price Target:
C$39.00
▲(22.76% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by a strong financial turnaround (improved margins, better leverage) and bullish technicals (price above all key moving averages with positive MACD). This is tempered by a rich valuation (P/E ~37.8) and the need to prove more consistent cash conversion, while earnings-call guidance and backlog provide supportive forward visibility despite acknowledged margin and timing risks.
Positive Factors
Profitability Improvement
A durable step-up in margins and profitability indicates improved mix, pricing power, and operational execution. Higher gross and EBIT margins and strong ROE (~26.8%) provide sustainable cash generation potential, enabling reinvestment and resilience across demand cycles.
Negative Factors
Cash Conversion Inconsistency
While cash generation recovered, FCF conversion remains inconsistent historically. Earnings-to-cash variability can constrain sustained debt reduction, dividend or buyback optionality, and capital spending flexibility if margins or working capital dynamics worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Improvement
A durable step-up in margins and profitability indicates improved mix, pricing power, and operational execution. Higher gross and EBIT margins and strong ROE (~26.8%) provide sustainable cash generation potential, enabling reinvestment and resilience across demand cycles.
Read all positive factors
5N Plus (VNP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.83B
Dividend YieldN/A
Average Volume (3M)243.93K
Price to Earnings (P/E)22.3
Beta (1Y)0.84
Revenue Growth30.36%
EPS Growth181.15%
CountryCA
Employees793
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.11
Shares Outstanding89,074,050
10 Day Avg. Volume360,117
30 Day Avg. Volume243,931
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)5.79
Price to Sales (P/S)2.89
P/FCF Ratio23.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$33.50Price Target Upside5.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.64
Revenue Forecast (FY)C$458.22M
5N Plus Business Overview & Revenue Model
Company Description
5N Plus Inc. produces and sells semiconductors in North America, Europe, and Asia. It operates through Specialty Semiconductors and Performance Material segments. The company offers low melting point alloys, semiconductor compounds and wafers, as ...
How the Company Makes Money
5N Plus makes money primarily by manufacturing and selling high-purity specialty materials and compounds to industrial customers, generating revenue through product sales under customer purchase orders and, in some cases, longer-term supply arrang...
5N Plus Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial momentum for FY2025: double-digit revenue growth, record adjusted EBITDA, high segment margins, substantial backlog, strategic customer contracts, capacity expansions, and an improved balance sheet. Management was cautious about near-term margin headwinds driven by accelerated maintenance, rising input costs, and the timing of client releases. Strategic investments (e.g., USD 18.1M germanium award) and multi-year contracts provide structural support, while several risks remain manageable and largely acknowledged. Overall the positive achievements and forward visibility materially outweigh the near-term operational and cost challenges.Positive Updates
Record Annual Financial Performance
Total revenue increased 35% year-over-year to $391.1 million in FY2025. Adjusted gross margin rose 44% to $131.8 million (33.7% of sales). Adjusted EBITDA was a record $92.4 million, up 73% versus prior year.
Negative Updates
Q4 Margin Pressure in Specialty Semiconductors
Q4 specialty semiconductor adjusted gross margin fell to 25.5% of sales (down YoY) and adjusted EBITDA growth in Q4 was modest (+12% to $14.2 million). Management attributed the Q4 margin step-down mainly to accelerated preventive maintenance and a less favorable product mix.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Financial Performance
Total revenue increased 35% year-over-year to $391.1 million in FY2025. Adjusted gross margin rose 44% to $131.8 million (33.7% of sales). Adjusted EBITDA was a record $92.4 million, up 73% versus prior year.
Read all positive updates
Company Guidance
The company guided to adjusted EBITDA of $100–$105 million for FY2026 (with a higher contribution in H2), implying roughly 11% year‑over‑year growth at the midpoint versus the FY2025 baseline of $92.4 million adjusted EBITDA and $391.1 million revenue (FY2025: +35% y/y); FY2025 adjusted gross margin was $131.8 million (33.7% of sales) with specialty semiconductors revenue of $285.4 million (segment EBITDA $70.1 million) and performance materials revenue of $105.7 million (segment EBITDA $35.1 million, adjusted gross margin 42.4%); balance sheet strength includes net debt reduced to $50.3 million from $100.1 million and a net debt/EBITDA of 0.5x, backlog at 265 days, 2025 capex including intangibles ~ $21 million (expected similar in 2026), secured volume increases of +33% for 2025–26 and a further +25% into 2027–28 for a key thin‑film customer, AZUR cell capacity up 30% in 2025 with a planned additional 25% coming online from H2 2026, and a USD 18.1 million U.S. award to expand germanium recycling (limited 2026 revenue impact, ramping in 2027–29); management noted anticipated margin pressure from rising input and operating costs and emphasized conservative assumptions, productivity and selective investment.5N Plus Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 397.91M | 289.28M | 242.37M | 264.22M | 209.99M |
| Gross Profit | 118.11M | 77.87M | 57.54M | 48.51M | 38.78M |
| EBITDA | 93.15M | 49.82M | 43.88M | 5.17M | 25.24M |
| Net Income | 51.45M | 14.67M | 15.40M | -23.00M | 3.11M |
Balance Sheet | |||||
| Total Assets | 474.27M | 376.91M | 350.20M | 347.99M | 373.59M |
| Cash, Cash Equivalents and Short-Term Investments | 61.66M | 22.14M | 34.71M | 42.69M | 35.94M |
| Total Debt | 167.67M | 151.60M | 138.64M | 151.40M | 148.64M |
| Total Liabilities | 275.66M | 237.89M | 221.61M | 235.21M | 237.34M |
| Stockholders Equity | 198.60M | 139.02M | 128.59M | 112.78M | 136.25M |
Cash Flow | |||||
| Free Cash Flow | 48.07M | -28.07M | -992.00K | 6.69M | 4.34M |
| Operating Cash Flow | 68.57M | -6.89M | 17.25M | 23.74M | 10.27M |
| Investing Cash Flow | -14.14M | -17.98M | -12.36M | -18.99M | -49.93M |
| Financing Cash Flow | -16.74M | 12.39M | -13.00M | 2.41M | 36.22M |
5N Plus Technical Analysis
Positive
31.77
Price Trends
28.13
Positive
23.68
Positive
19.12
Positive
Market Momentum
1.17
Positive
55.38
Neutral
47.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VNP, the sentiment is Positive. The current price of 31.77 is above the 20-day moving average (MA) of 30.65, above the 50-day MA of 28.13, and above the 200-day MA of 19.12, indicating a bullish trend. The MACD of 1.17 indicates Positive momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 47.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VNP.
5N Plus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$2.83B | 22.34 | 28.32% | ― | 30.36% | 181.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | C$2.13B | -49.83 | -86.76% | ― | 331.08% | 15.77% | |
48 Neutral | C$889.38M | -46.51 | -2.55% | 2.55% | 8.04% | -195.66% | |
44 Neutral | C$257.92M | -3.44 | -414.40% | ― | 6.29% | -3.71% | |
42 Neutral | C$12.45M | -2.61 | -86.94% | ― | -15.84% | -375.96% | |
42 Neutral | C$105.31M | -10.77 | -50.81% | ― | ― | 56.03% |
* Basic Materials Sector Average
TSE:VNP
5N Plus
31.77
26.29
479.74%
TSE:CNO
California Nanotechnologies
0.26
-0.40
-60.61%
TSE:NANO
Nano One Materials
0.88
0.28
46.67%
TSE:NEO
Neo Performance Materials Inc
21.38
13.67
177.41%
TSE:GMG
Graphene Manufacturing Group Ltd
2.19
1.59
265.00%
TSE:HG
Hydrograph Clean Power
6.25
6.03
2740.91%
5N Plus Corporate Events
Business Operations and StrategyFinancial Disclosures
5N Plus Delivers Record 2025 Results and Sharp Earnings Growth on Specialty Semiconductor Demand
Positive
Feb 24, 2026
5N Plus reported record fiscal 2025 results, with revenue climbing 35% to $391.1 million and adjusted EBITDA surging 73% to $92.4 million, driven by higher specialty semiconductor volumes and improved pricing for bismuth-based products. Net earnin...
Business Operations and Strategy
5N Plus Boosts Space Solar Cell Capacity Again to Meet Surging Satellite Demand
Positive
Feb 2, 2026
5N Plus, through its subsidiary AZUR SPACE Solar Power, is ramping up space solar cell production with a further 25% capacity increase planned for 2026, on top of expansions of 35% in 2024 and 30% in 2025, to meet surging demand driven by AI-relat...
Business Operations and Strategy
5N Plus to Boost Space Solar Cell Capacity Again as Satellite Demand Surges
Positive
Feb 2, 2026
5N Plus, through its wholly owned subsidiary AZUR SPACE Solar Power, is expanding space solar cell production with an additional 25% capacity increase planned for 2026, on top of 30% in 2025 and 35% in 2024, as demand surges for satellite and spac...
Business Operations and StrategyPrivate Placements and Financing
5N Plus Wins US$18.1 Million U.S. Grant to Boost Germanium Output in Utah
Positive
Jan 30, 2026
5N Plus has secured a US$18.1 million grant from the U.S. government to expand germanium recycling and refining capacity at its St. George, Utah facility, aiming to significantly increase supply for optics and solar germanium crystal applications....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.