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5N Plus (TSE:VNP)
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5N Plus (VNP) AI Stock Analysis

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TSE:VNP

5N Plus

(TSX:VNP)

Rating:73Outperform
Price Target:
C$16.00
▲(28.31% Upside)
5N Plus's strong financial performance and positive earnings call sentiment are the primary drivers of its score. However, technical indicators suggest caution due to overbought conditions, and the valuation appears high. Cash flow issues also pose a risk to financial flexibility.

5N Plus (VNP) vs. iShares MSCI Canada ETF (EWC)

5N Plus Business Overview & Revenue Model

Company Description5N Plus (VNP) is a leading global producer of specialty metals and chemicals, catering to a wide array of industries including electronics, pharmaceuticals, and renewable energy. The company specializes in the development and manufacturing of high-purity materials and advanced chemicals, which are integral to the production of semiconductors, solar panels, and various other high-tech applications.
How the Company Makes Money5N Plus generates revenue through the sale of its specialty metals and chemicals to diverse industries around the world. The company primarily earns money by supplying high-purity materials to manufacturers in the electronics and renewable energy sectors, where their products are used in the production of semiconductors and photovoltaic cells. Additionally, 5N Plus engages in strategic partnerships and long-term supply agreements with key industry players, ensuring a stable and recurring revenue stream. The company's ability to innovate and develop customized solutions for its clients further enhances its market position and contributes to its financial performance.

5N Plus Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: 87.24%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with record-breaking figures and strategic agreements, particularly with First Solar. Although there are some anticipated challenges in the second half of the year, such as a potential decline in EBITDA, the overall sentiment remains positive due to significant achievements and growth opportunities.
Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
5N Plus achieved record results for Q2 2025, including record quarterly and first-half adjusted EBITDA, record quarterly adjusted gross margin, and the strongest first-half revenues in a decade. Consolidated revenue in Q2 increased by 28% to $95.3 million, with a 37% growth year-over-year.
Strategic Agreement with First Solar
A milestone supply agreement with First Solar was announced, increasing semiconductor compound supply volumes by 33% for 2025-2026 and an additional 25% for 2027-2028. This positions 5N Plus as a critical enabler in the U.S. solar energy sector.
Strong Specialty Semiconductor Segment Performance
Q2 volumes in terrestrial renewable energy were up 50% year-over-year. Specialty Semiconductors revenue was $71.2 million compared to $52.3 million in Q2 last year, supported by higher demand and favorable unit costs from economies of scale.
Performance Materials Margin Expansion
Despite slightly lower volumes, the performance materials segment saw exceptional margins, with adjusted gross margin as a percentage of sales reaching 41.1% in Q2, compared to 28.4% last year.
Improved Financial Position
Net debt decreased to $74.3 million from $100.1 million at the end of December 2024, bringing the net debt-to-EBITDA ratio to 1.07x as of June 30, 2025.
Negative Updates
Slight Decline in Performance Materials Volumes
The performance materials segment experienced slightly lower volumes compared to last year despite favorable margins, indicating some volatility in demand.
Anticipated H2 2025 EBITDA Decline
The company expects H2 2025 EBITDA to be slightly lower than H1 due to anticipated higher operating costs and seasonal trends in the performance materials segment.
Company Guidance
In the second quarter of 2025, 5N Plus Inc. reported record financial results, with revenues reaching $95.3 million, a 28% increase from the previous year, and year-to-date revenues rising by 37% to $184.2 million. The company achieved an all-time high adjusted EBITDA of $24.1 million for the quarter, representing a 79% increase, and $44.9 million year-to-date, marking a 78% growth compared to 2024. The adjusted gross margin saw a significant improvement, increasing by 41% to $33 million, equating to 34.6% of sales. Additionally, the Specialty Semiconductor segment experienced a 50% year-over-year volume increase, contributing to a revenue rise from $52.3 million to $71.2 million. Performance Materials also showed strong performance, with revenue reaching $24.1 million, supported by exceptional margins. Looking forward, the company raised its adjusted EBITDA guidance for the year from a range of $55 million to $60 million to a new range of $65 million to $70 million, driven by increased demand and a new supply agreement with First Solar.

5N Plus Financial Statement Overview

Summary
The company demonstrates strong revenue growth and profitability, with healthy EBIT and EBITDA margins. However, challenges in cash flow management detract from its financial strength, necessitating improvement in liquidity.
Income Statement
85
Very Positive
The company has demonstrated robust revenue growth with a TTM increase of 8.3% from the previous year. Gross profit margin stands at 28.1% and net profit margin at 6.9%, both indicating strong profitability. EBIT and EBITDA margins are healthy at 12.7% and 18.7% respectively, showing efficient operational performance.
Balance Sheet
75
Positive
The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 1.01. Return on equity is strong at 14.4%, reflecting effective use of equity capital. The equity ratio is 38.3%, indicating a balanced capital structure.
Cash Flow
60
Neutral
The company faces challenges with cash flow, as evidenced by a negative free cash flow of $16.36 million in the TTM period. However, the operating cash flow to net income ratio is 0.01, suggesting a need for improved cash conversion. The free cash flow to net income ratio is negative, highlighting liquidity concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue289.28M242.37M264.22M209.99M177.19M
Gross Profit77.87M57.54M48.51M38.78M36.39M
EBITDA49.82M43.88M5.17M25.24M25.22M
Net Income14.67M15.40M-23.00M3.11M2.19M
Balance Sheet
Total Assets376.91M350.20M347.99M373.59M226.68M
Cash, Cash Equivalents and Short-Term Investments22.14M34.71M42.69M35.94M39.95M
Total Debt151.60M138.64M151.40M148.64M55.47M
Total Liabilities237.89M221.61M235.21M237.34M108.30M
Stockholders Equity139.02M128.59M112.78M136.25M118.38M
Cash Flow
Free Cash Flow-28.07M-992.00K6.69M4.34M28.25M
Operating Cash Flow-6.89M17.25M23.74M10.27M36.80M
Investing Cash Flow-17.98M-12.36M-18.99M-49.93M-8.46M
Financing Cash Flow12.39M-13.00M2.41M36.22M-8.80M

5N Plus Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.47
Price Trends
50DMA
9.80
Positive
100DMA
8.07
Positive
200DMA
7.55
Positive
Market Momentum
MACD
1.03
Negative
RSI
87.63
Negative
STOCH
72.10
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 12.47 is above the 20-day moving average (MA) of 11.32, above the 50-day MA of 9.80, and above the 200-day MA of 7.55, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 87.63 is Negative, neither overbought nor oversold. The STOCH value of 72.10 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

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$1.29B30.6121.38%28.47%196.88%
71
Outperform
C$693.03M-3.70%2.54%-12.01%-698.83%
70
Outperform
¥175.67B10.426.15%3.18%3.62%-0.12%
64
Neutral
C$102.11M-72.52%-9.37%22.80%
62
Neutral
C$397.61M-96.25%203.80%16.89%
58
Neutral
C$243.70M-1.52%39.78%72.34%
45
Neutral
C$107.04M-51.47%13.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:VNP
5N Plus
14.45
8.36
137.27%
TSE:NEO
Neo Performance Materials Inc
16.57
9.77
143.68%
TSE:ECO
EcoSynthetix
4.15
0.08
1.97%
TSE:NANO
Nano One Materials
0.96
0.14
17.07%
TSE:GMG
Graphene Manufacturing Group Ltd
0.95
0.45
90.00%
TSE:HG
Hydrograph Clean Power
1.49
1.37
1141.67%

5N Plus Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
5N Plus Expands Critical Materials Supply Agreement with First Solar
Positive
Aug 5, 2025

5N Plus Inc. has expanded its supply agreement with First Solar, reflecting increased commitments for semiconductor compounds, specifically cadmium telluride (CdTe) and cadmium selenide (CdSe), to support First Solar’s growing U.S. manufacturing capacity. This agreement underscores the strength of their collaboration and aligns with First Solar’s strategy to source critical materials from American or allied sources. The expansion is facilitated by 5N Plus’s manufacturing flexibility and recent production enhancements in Canada and Germany, reinforcing its position as a trusted partner in the solar technology sector.

The most recent analyst rating on (TSE:VNP) stock is a Buy with a C$7.25 price target. To see the full list of analyst forecasts on 5N Plus stock, see the TSE:VNP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
5N Plus Inc. Achieves Record Q2 2025 Results and Raises Annual Guidance
Positive
Aug 4, 2025

5N Plus Inc. reported a strong financial performance for the second quarter of 2025, achieving a 32% year-over-year revenue growth to $184.2 million for the first half of the year. The company recorded a 79% increase in Adjusted EBITDA to $24.1 million, driven by higher sales in the terrestrial renewable energy and space solar power sectors, alongside improved pricing for bismuth-based products. The company has increased its annual Adjusted EBITDA guidance to a range of $65-$70 million, reflecting its strategic positioning and growing demand in its key markets. With a robust backlog and reduced net debt, 5N Plus is well-positioned to capitalize on the accelerating demand for its products, solidifying its status as a strategic partner outside of China.

The most recent analyst rating on (TSE:VNP) stock is a Buy with a C$7.25 price target. To see the full list of analyst forecasts on 5N Plus stock, see the TSE:VNP Stock Forecast page.

Executive/Board ChangesShareholder Meetings
5N Plus Inc. Elects Board and Confirms Auditor at Annual Meeting
Positive
May 8, 2025

5N Plus Inc. announced the election of its board of directors at the recent Annual General Meeting, with Luc Bertrand re-appointed as Chairman. The meeting also confirmed PricewaterhouseCoopers LLP as the independent auditor for the upcoming year. These decisions reinforce the company’s leadership stability and operational continuity, potentially strengthening its market position and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
5N Plus Inc. Achieves Record Growth in Q1 2025
Positive
May 7, 2025

5N Plus Inc. reported a strong financial performance for the first quarter of 2025, with a 37% increase in revenue to $88.9 million and a 77% growth in Adjusted EBITDA to $20.8 million. The company attributes this success to strong demand in its strategic sectors and increased operational agility. Despite global trade volatility, 5N Plus maintains its leadership position by exploring opportunities to expand production capacity and meet future demand, reinforcing its commitment to long-term objectives and strategic initiatives.

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.Date of analysis: Aug 06, 2025