5N Plus (VNP) AI Stock Analysis

• Market Cap: C$1.59B
• Dividend Yield: N/A
• Average Volume (3M): 243.93K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.22
• Revenue Growth: 30.36%
• EPS Growth: 181.15%
• Country: CA
• Employees: 793
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.28
• Shares Outstanding: 89,074,050
• 10 Day Avg. Volume: 360,117
• 30 Day Avg. Volume: 243,931
• PEG Ratio: 0.00
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 1.58
• P/FCF Ratio: -16.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$23.50
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$19.00 ▲(6.38% Upside)

5N Plus's overall stock score is driven by its robust financial performance and positive earnings call, which highlight strong growth and strategic positioning. However, technical indicators suggest bearish momentum, and the valuation is moderate, impacting the overall score.

Positive Factors

Revenue Growth

The significant revenue growth demonstrates strong market demand and effective business strategies, positioning the company for sustained expansion.

Specialty Semiconductor Segment Success

The robust performance in the Specialty Semiconductor segment highlights the company's competitive edge and potential for continued growth in high-demand sectors.

Cash Flow Improvement

Enhanced cash generation capabilities improve financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Negative Factors

Geopolitical and Inflationary Pressure

Geopolitical and inflationary pressures may lead to increased costs and supply chain disruptions, impacting long-term profitability and operational stability.

Debt Levels

While manageable, the reliance on debt financing could pose risks if market conditions worsen, potentially affecting financial stability.

Potential Q4 EBITDA Step Down

The anticipated Q4 EBITDA decline could signal temporary operational challenges, affecting short-term financial performance and investor confidence.

5N Plus Business Overview & Revenue Model

Company Description

5N Plus Inc. is a leading producer of specialty chemicals and engineered materials, primarily serving the electronics, solar, and healthcare sectors. The company focuses on the production of high-purity metals and compounds, with a strong emphasis on sustainability and innovation. Its portfolio includes products such as bismuth, selenium, and various other metal-based compounds used in a range of applications, including photovoltaic cells and electronic components.

How the Company Makes Money

5N Plus generates revenue through the sale of its high-purity metals and specialty chemicals to various industries, including renewable energy, electronics, and healthcare. Key revenue streams include the production of specialty materials for solar panels, where the company supplies critical components that enhance efficiency and performance. Additionally, 5N Plus benefits from strategic partnerships with leading technology companies and research institutions, which not only help to drive innovation but also secure long-term contracts that provide steady revenue. The company's commitment to sustainability and its ability to recycle precious metals further contribute to its earnings, allowing it to capitalize on growing environmental concerns and regulatory requirements within its target markets.

5N Plus Financial Statement Overview

Summary

5N Plus exhibits strong revenue growth and improved profitability, with a solid income statement. The balance sheet is stable, though debt levels should be monitored. Cash flow management presents challenges, with significant declines in free cash flow, indicating a need for better cash management strategies.

Income Statement

5N Plus has shown a strong revenue growth rate of 6.62% in the TTM, indicating positive momentum in sales. The gross profit margin improved to 28.06%, reflecting efficient cost management. The net profit margin increased to 6.94%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 13.11% and 18.69%, respectively, suggesting robust operational performance. However, the company should continue to monitor cost controls to sustain these margins.

Balance Sheet

The debt-to-equity ratio of 1.01 in the TTM indicates a balanced leverage position, though slightly higher than the previous year. Return on equity improved to 15.27%, demonstrating effective use of equity to generate profits. The equity ratio stands at 39.85%, suggesting a moderate reliance on equity financing. While the balance sheet shows stability, the company should be cautious of increasing debt levels.

Cash Flow

Operating cash flow improved to $24.39 million in the TTM, but free cash flow declined significantly, resulting in a negative free cash flow growth rate of -156.22%. The operating cash flow to net income ratio is low at 0.43, indicating potential challenges in converting income into cash. The negative free cash flow to net income ratio highlights the need for better cash management strategies to support long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	399.53M	289.28M	242.37M	264.22M	209.99M	177.19M
Gross Profit	123.42M	77.87M	57.54M	48.51M	38.78M	36.39M
EBITDA	95.72M	49.82M	43.88M	5.17M	25.24M	22.60M
Net Income	50.84M	14.67M	15.40M	-23.00M	3.11M	2.19M
Balance Sheet
Total Assets	641.93M	376.91M	350.20M	347.99M	373.59M	226.68M
Cash, Cash Equivalents and Short-Term Investments	72.62M	22.14M	34.71M	42.69M	35.94M	39.95M
Total Debt	202.91M	151.60M	138.64M	151.40M	148.64M	55.47M
Total Liabilities	376.42M	237.89M	221.61M	235.21M	237.34M	108.30M
Stockholders Equity	265.51M	139.02M	128.59M	112.78M	136.25M	118.38M
Cash Flow
Free Cash Flow	31.12M	-28.07M	-992.00K	6.69M	4.34M	28.25M
Operating Cash Flow	50.09M	-6.89M	17.25M	23.74M	10.27M	36.80M
Investing Cash Flow	-11.76M	-17.98M	-12.36M	-18.99M	-49.93M	-8.46M
Financing Cash Flow	-9.72M	12.39M	-13.00M	2.41M	36.22M	-8.80M

5N Plus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VNP, the sentiment is Neutral. The current price of 17.86 is below the 20-day moving average (MA) of 18.98, below the 50-day MA of 19.22, and above the 200-day MA of 12.57, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 22.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:VNP.

5N Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNP	71 Outperform	C$1.59B	25.97	26.65%	―	30.36%	181.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HG	54 Neutral	C$817.97M	-86.96	-87.47%	―	331.08%	15.77%
GMG	52 Neutral	C$188.43M	-19.73	-92.59%	―	6.29%	-3.71%
NEO	50 Neutral	C$668.08M	-73.60	-1.61%	2.49%	8.04%	-195.66%
ECO	49 Neutral	C$223.00M	-197.41	-2.11%	―	30.76%	52.23%
NANO	45 Neutral	C$126.74M	-8.90	-64.59%	―	―	56.03%

5N Plus Corporate Events

5N Plus Inc. Achieves Record Financial Performance in Q3 2025

5N Plus Inc. reported a significant financial milestone in Q3 2025, with a 33% year-over-year revenue growth to $104.9 million, marking the highest quarterly revenue in a decade. The company achieved record adjusted gross margin and EBITDA, driven by increased demand and pricing in its key markets. The company’s strong performance has led to an upward revision of its annual EBITDA guidance, highlighting its strategic positioning and robust market demand, particularly in the renewable energy and space sectors.

5N Plus Announces Strategic CEO Succession Plan

5N Plus Inc. has announced a CEO succession plan where Richard Perron, currently the Chief Financial Officer, will become President on November 1, 2025, and is expected to take on the role of President and CEO by May 31, 2026. This transition is part of a strategic move to ensure leadership continuity and continued execution of the company’s strategic priorities. Current CEO, Gervais Jacques, will transition to Executive Chairman of the Board, while Luc Bertrand will become Lead Independent Director. The company is also searching for a new CFO. This leadership change is seen as a strategic move to maintain the company’s growth trajectory and strengthen its market position.