5N Plus (VNP) AI Stock Analysis

• Market Cap: C$822.76M
• Dividend Yield: N/A
• Average Volume (3M): 267.65K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.98
• Revenue Growth: 28.27%
• EPS Growth: 36.49%
• Country: CA
• Employees: 793
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): 0.15
• Shares Outstanding: 89,042,800
• 10 Day Avg. Volume: 179,539
• 30 Day Avg. Volume: 267,652
• PEG Ratio: 0.51
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.94
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: C$10.25
• Price Target Upside: 11.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: C$9.50 ▲(3.04%Upside)

5N Plus shows impressive financial performance with robust growth and profitability, supported by a positive earnings call that highlights strategic advancements. However, liquidity concerns and mixed technical indicators offset these strengths. The stock's valuation is moderate, aligning with its growth potential, but the lack of a dividend yield may deter some investors.

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 well as various chemicals, and metals. It is also involved in manufacture of metallic powders for micro-electronic and manufacturing applications. In addition, the company is involved in animal feed additives and pharmaceutical ingredients as well as offers recycling services. The company serves renewable energy, security, space, pharmaceutical, medical imaging, manufacturing, electronic, consumer, and industrial applications.5N Plus Inc. is headquartered in Montreal, Canada.

How the Company Makes Money

5N Plus makes money primarily through the manufacturing and sale of high-purity materials and chemicals used in advanced technology applications. The company's revenue model is driven by its ability to produce and supply specialty materials that meet stringent industry standards. Key revenue streams include the sale of electronic materials used in semiconductors and optoelectronics, as well as eco-friendly materials utilized in renewable energy solutions. Significant partnerships with technology companies and manufacturers in these sectors contribute to its earnings by ensuring a steady demand for its products. Additionally, 5N Plus benefits from long-term supply agreements and its commitment to innovation, which allows it to maintain competitive advantages in niche markets.

5N Plus Financial Statement Overview

Summary

5N Plus demonstrates strong revenue growth and profitability, as seen in robust profit margins and a stable balance sheet. However, the company faces challenges in cash flow management, with negative free cash flow and liquidity concerns.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
313.15M	289.28M	242.37M	264.22M	209.99M	177.19M
	Gross Profit
87.86M	77.87M	57.54M	48.51M	38.78M	36.39M
	EBIT
39.91M	32.23M	27.37M	-12.78M	12.87M	13.50M
	EBITDA
58.54M	49.82M	43.88M	5.17M	25.24M	25.22M
	Net Income Common Stockholders
21.74M	14.67M	15.40M	-23.00M	3.11M	2.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.52M	22.14M	34.71M	42.69M	35.94M	39.95M
	Total Assets
395.97M	376.91M	350.20M	347.99M	373.59M	226.68M
	Total Debt
152.38M	151.60M	138.64M	151.40M	148.64M	55.47M
	Net Debt
121.86M	129.46M	103.93M	108.71M	112.70M	15.52M
	Total Liabilities
244.51M	237.89M	221.61M	235.21M	237.34M	108.30M
	Stockholders Equity
151.46M	139.02M	128.59M	112.78M	136.25M	118.38M
Cash Flow		Free Cash Flow
-16.36M	-28.07M	-992.00K	6.69M	4.34M	28.25M
	Operating Cash Flow
281.00K	-6.89M	17.25M	23.74M	10.27M	36.80M
	Investing Cash Flow
-5.54M	-17.98M	-12.36M	-18.99M	-49.93M	-8.46M
	Financing Cash Flow
1.72M	12.39M	-13.00M	2.41M	36.22M	-8.80M

5N Plus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.22 is above the 20-day moving average (MA) of 8.43, above the 50-day MA of 7.07, and above the 200-day MA of 6.91, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 77.16 is Negative, neither overbought nor oversold. The STOCH value of 91.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VNP.

5N Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	72 Outperform	C$497.29M	―	-3.70%	3.49%	-12.01%	-698.83%
VNP	71 Outperform	C$822.76M	27.06	15.41%	―	28.27%	36.49%
GMG	57 Neutral	C$65.11M	―	-72.52%	―	-9.37%	22.80%
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%
HG	50 Neutral	C$58.71M	―	-96.25%	―	203.80%	16.89%
ECO	45 Neutral	C$234.94M	―	-3.46%	―	29.27%	42.35%
NANO	45 Neutral	C$69.13M	―	-51.47%	―	―	13.34%

5N Plus Corporate Events

5N Plus Inc. Elects Board and Confirms Auditor at Annual Meeting

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.

5N Plus Inc. Achieves Record Growth in Q1 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.

5N Plus Expands Credit Facilities to Fuel Growth

5N Plus Inc. has renewed its syndicated credit facilities, increasing its borrowing capacity from $124 million to $154 million, with the potential to further expand to $204 million. This financial move is designed to support the company’s growth strategy, focusing on value-added products and long-term customer partnerships. The oversubscribed credit facility, led by the Royal Bank of Canada and other financial institutions, underscores the confidence in 5N Plus’s market positioning as a leading supplier of critical specialty semiconductors.