5N Plus Inc (TSE:VNP)
TSX:VNP
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5N Plus
(TSX:VNP)
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Rating:72Outperform
Price Target:
C$46.00
▲(37.03% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong operating performance and improving balance-sheet leverage, supported by bullish technical trend signals. It is tempered by volatile/weaker recent cash conversion and a relatively high P/E, with the latest earnings call reinforcing strong demand/backlog but also highlighting working-capital cash use and cost headwinds.
Positive Factors
Profitability turnaround & margin expansion
Margin expansion and a clear profitability turnaround (TTM net margin ~14%, EBIT ~20%) indicate durable pricing power and operational leverage in specialty materials. Sustained margins improve free‑cash generation capacity, fund reinvestment and support returns over the next several quarters.
Negative Factors
Volatile cash conversion & working capital
Cash generation is erratic versus earnings: FCF fell materially year‑over‑year and operating cash flow has swung negative historically. Persistent working‑capital builds to support volume can force external financing or raise net debt, constraining investment pacing and increasing execution risk over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround & margin expansion
Margin expansion and a clear profitability turnaround (TTM net margin ~14%, EBIT ~20%) indicate durable pricing power and operational leverage in specialty materials. Sustained margins improve free‑cash generation capacity, fund reinvestment and support returns over the next several quarters.
Read all positive factors
5N Plus (VNP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.86B
Dividend YieldN/A
Average Volume (3M)243.93K
Price to Earnings (P/E)29.1
Beta (1Y)0.77
Revenue Growth33.05%
EPS Growth166.24%
CountryCA
Employees793
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.65
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$34.67Price Target Upside3.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.67
Revenue Forecast (FY)C$469.14M
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 specialty materials (high-purity metals and metal-based compounds) to industrial and technology customers. Its revenue model is based on (1) product sales volumes and (2) realized pricing ...
5N Plus Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted a very strong Q1 with robust top‑line growth (+33%), substantial EBITDA and net earnings expansion (+41% and ~85% respectively), excellent backlog visibility (365 days in Specialty Semiconductors) and active capacity expansion (AZUR +25% coming H2 2026). Offsetting items include a Q1 cash outflow driven by working capital build, a near‑term increase in net debt (to $74.7M), ongoing metal input cost pressures, energy‑related operational exposure, and a conservative full‑year guidance despite the strong start. Overall, the company portrays solid execution and market strength while remaining prudent about cost and operational risks.Positive Updates
Strong Revenue Growth
Q1 2026 revenue of $117.9M, up 33% year‑over‑year from $88.9M, driven by higher volumes in Specialty Semiconductors and stronger pricing in Performance Materials.
Negative Updates
Working Capital and Operating Cash Use
Cash used in operating activities of $13.5M in Q1 2026 (vs cash generated in the prior year), primarily due to higher working capital requirements to support increased volumes; AR and inventory builds noted and expected to remain elevated in H1.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 2026 revenue of $117.9M, up 33% year‑over‑year from $88.9M, driven by higher volumes in Specialty Semiconductors and stronger pricing in Performance Materials.
Read all positive updates
Company Guidance
The company maintained full‑year adjusted EBITDA guidance of $100–$105 million while noting a strong Q1 that supports that outlook: Q1 revenue was $117.9M (+33% vs $88.9M), adjusted gross margin $41.4M (35.1% of sales vs 34.2% prior year), adjusted EBITDA $29.2M (+41%), and net earnings $17.8M ($0.20/share vs $9.6M/$0.11). Segment metrics included Specialty Semiconductors revenue of $86.2M (+37%) with adjusted EBITDA $25.1M (+42%) and backlog effectively maxed at 365 days, and Performance Materials revenue of $31.7M (+21%) with adjusted EBITDA $10.1M (+67%), adjusted gross margin 37.8% (vs 32.9%) and backlog of ~130 days. The company flagged working capital needs (cash used in ops $13.5M in Q1), net debt of $74.7M (vs $50.3M at end‑2025) and a low net debt/EBITDA of 0.71x, reaffirmed plans for capacity expansion (AZUR: prior 30% increase in 2025 and a further ~25% expansion announced) and said it expects a more balanced contribution across the year, gradual normalization of Performance Materials pricing, and potential margin pressure from higher input and operating costs mitigated by productivity and scale initiatives.5N Plus Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 418.39M | 397.91M | 289.28M | 242.37M | 264.22M | 209.99M |
| Gross Profit | 125.66M | 118.11M | 77.87M | 57.54M | 48.51M | 38.78M |
| EBITDA | 102.29M | 93.15M | 49.82M | 43.88M | 5.17M | 25.24M |
| Net Income | 58.35M | 51.45M | 14.67M | 15.40M | -23.00M | 3.11M |
Balance Sheet | ||||||
| Total Assets | 519.27M | 474.27M | 376.91M | 350.20M | 347.99M | 373.59M |
| Cash, Cash Equivalents and Short-Term Investments | 45.75M | 61.66M | 22.14M | 34.71M | 42.69M | 35.94M |
| Total Debt | 149.62M | 167.67M | 151.60M | 138.64M | 151.40M | 148.64M |
| Total Liabilities | 302.32M | 275.66M | 237.89M | 221.61M | 235.21M | 237.34M |
| Stockholders Equity | 216.95M | 198.60M | 139.02M | 128.59M | 112.78M | 136.25M |
Cash Flow | ||||||
| Free Cash Flow | 21.16M | 48.07M | -28.07M | -992.00K | 6.69M | 4.34M |
| Operating Cash Flow | 47.96M | 68.57M | -6.89M | 17.25M | 23.74M | 10.27M |
| Investing Cash Flow | -27.43M | -14.14M | -17.98M | -12.36M | -18.99M | -49.93M |
| Financing Cash Flow | -5.25M | -16.74M | 12.39M | -13.00M | 2.41M | 36.22M |
5N Plus Technical Analysis
Positive
33.57
Price Trends
33.54
Positive
28.63
Positive
23.02
Positive
Market Momentum
2.15
Negative
76.69
Negative
82.34
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 33.57 is below the 20-day moving average (MA) of 35.96, above the 50-day MA of 33.54, and above the 200-day MA of 23.02, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 76.69 is Negative, neither overbought nor oversold. The STOCH value of 82.34 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$3.86B | 29.12 | 30.00% | ― | 33.05% | 166.24% | |
62 Neutral | C$1.29B | -101.40 | -2.63% | 2.55% | 6.85% | 33.13% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | C$301.87M | -3.44 | -414.40% | ― | 20.86% | -224.67% | |
53 Neutral | C$2.38B | -49.83 | -86.76% | ― | 1914.33% | -42.09% | |
46 Neutral | C$111.30M | -29.13 | -69.66% | ― | ― | 12.74% | |
42 Neutral | C$9.96M | -2.61 | -86.94% | ― | -48.43% | -757.33% |
* Basic Materials Sector Average
TSE:VNP
5N Plus
43.29
34.99
421.57%
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TSE:GMG
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TSE:HG
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5N Plus Corporate Events
Business Operations and StrategyExecutive/Board Changes
5N Plus Names Alban Fournier CFO Amid Broader Leadership Succession
Positive
Apr 13, 2026
5N Plus Inc. has appointed Alban Fournier as Chief Financial Officer effective April 27, 2026, bringing nearly three decades of international experience in finance, internal audit, corporate strategy and technology, including senior roles at the M...
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...
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.