5N Plus (VNP) AI Stock Analysis

• Market Cap: C$2.47B
• Dividend Yield: N/A
• Average Volume (3M): 243.93K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.79
• Revenue Growth: 30.36%
• EPS Growth: 181.15%
• Country: CA
• Employees: 793
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.27
• 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$30.50
• Price Target Upside: 10.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$30.00 ▲(8.38% Upside)

The score is driven primarily by strong financial performance and an upbeat earnings update with raised EBITDA guidance and record results. This is tempered by weaker cash conversion metrics, an extended technical setup (overbought RSI), and a relatively high P/E valuation.

Positive Factors

Strong revenue and EBITDA growth

5N Plus delivered robust top-line and profitability expansion with a sizable quarter of volume and price/mix gains, and management raised full-year EBITDA guidance. Sustained demand in specialty segments supports medium-term cash generation and scale economics across plants.

High margins and profitable product mix

The company’s engineered, high‑purity materials command premium margins, especially in Performance Materials. Persistent high gross and EBIT margins reflect durable product differentiation, pricing power in technical metals, and ability to sustain profitability through cycles.

Improving cash generation and strong ROE

Significant FCF growth and a high ROE indicate efficient capital deployment and improving cash conversion trends. Combined with a moderate leverage profile, this enhances financial flexibility to fund maintenance, targeted investments, and customer service in specialty markets over the coming quarters.

Negative Factors

Weak cash conversion ratios

Despite rising free cash in absolute terms, low conversion ratios show earnings are not translating into cash efficiently. This suggests working capital, timing, or margin volatility risks that could constrain sustainable investment capacity and leave the company sensitive to demand swings.

Input-cost and geopolitical exposure

Reliance on niche raw materials exposes margins to supply disruptions and price spikes tied to geopolitics. Persistent input volatility can erode profitability, complicate long-term contracts, and require inventory or hedging strategies that increase working capital needs and operational complexity.

Seasonality and near-term maintenance risks

Planned maintenance and historical seasonality create predictable but material quarter-to-quarter EBITDA variability. For capital-intensive specialty processing, such disruptions reduce near-term cash flow and can delay margin recovery, pressuring working capital and the timing of strategic initiatives.

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 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

Strong profitability and growth profile (TTM revenue up 19.66%, gross margin 29.08%, net margin 9.64%) supports a high score. Balance sheet leverage looks manageable (debt-to-equity 0.89; ROE 21.23%), but cash conversion is a key constraint (operating cash flow to net income 0.31; FCF to net income 0.38), keeping the score below top-tier.

Income Statement

5N Plus has demonstrated strong revenue growth with a 19.66% increase in TTM, supported by robust margins: a gross profit margin of 29.08% and a net profit margin of 9.64%. The EBIT margin stands at 15.34%, indicating efficient operational management. The company has shown consistent improvement in profitability metrics over the years, reflecting a positive growth trajectory.

Balance Sheet

The company's debt-to-equity ratio of 0.89 in TTM suggests a balanced approach to leveraging, with a significant improvement from previous years. The return on equity of 21.23% indicates strong profitability relative to shareholder equity. However, the equity ratio of 41.36% suggests moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

5N Plus has significantly improved its free cash flow, with a growth rate of 238.40% in TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 0.31 suggests room for improvement in converting income into cash. The free cash flow to net income ratio of 0.38 indicates a moderate level of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	358.64M	289.28M	242.37M	264.22M	209.99M	177.19M
Gross Profit	110.04M	77.87M	57.54M	48.51M	38.78M	36.39M
EBITDA	84.06M	49.82M	43.88M	5.17M	25.24M	22.60M
Net Income	43.76M	14.67M	15.40M	-23.00M	3.11M	2.19M
Balance Sheet
Total Assets	460.25M	376.91M	350.20M	347.99M	373.59M	226.68M
Cash, Cash Equivalents and Short-Term Investments	52.07M	22.14M	34.71M	42.69M	35.94M	39.95M
Total Debt	145.49M	151.60M	138.64M	151.40M	148.64M	55.47M
Total Liabilities	269.89M	237.89M	221.61M	235.21M	237.34M	108.30M
Stockholders Equity	190.37M	139.02M	128.59M	112.78M	136.25M	118.38M
Cash Flow
Free Cash Flow	26.34M	-28.07M	-992.00K	6.69M	4.34M	28.25M
Operating Cash Flow	43.16M	-6.89M	17.25M	23.74M	10.27M	36.80M
Investing Cash Flow	-10.00M	-17.98M	-12.36M	-18.99M	-49.93M	-8.46M
Financing Cash Flow	-6.14M	12.39M	-13.00M	2.41M	36.22M	-8.80M

5N Plus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 27.68 is above the 20-day moving average (MA) of 21.53, above the 50-day MA of 19.85, and above the 200-day MA of 14.87, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 87.16 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
VNP	75 Outperform	C$2.47B	40.25	26.65%	―	30.36%	181.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HG	51 Neutral	C$975.27M	-75.79	-87.47%	―	331.08%	15.77%
NEO	50 Neutral	C$824.91M	-90.88	-1.61%	2.55%	8.04%	-195.66%
GMG	50 Neutral	C$261.45M	-27.37	-92.59%	―	6.29%	-3.71%
CNO	47 Neutral	C$15.53M	-4.82	-61.05%	―	-15.84%	-375.96%
NANO	42 Neutral	C$112.71M	-7.55	-64.59%	―	―	56.03%

5N Plus Corporate Events

5N Plus Boosts Space Solar Cell Capacity Again to Meet Surging Satellite Demand

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-related data processing, satellite connectivity, Earth observation and security applications. By optimizing processes, automating both front‑end and back‑end operations, and using existing facilities to add capacity with limited new investment, the company aims to capitalize on a full order backlog and strong project pipeline, reinforcing its leadership in space-grade solar technology and supporting continued growth initiatives for satellite and space-mission customers.

The most recent analyst rating on (TSE:VNP) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on 5N Plus stock, see the TSE:VNP Stock Forecast page.

5N Plus to Boost Space Solar Cell Capacity Again as Satellite Demand Surges

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 space-mission power systems driven by AI, connectivity, observation and security applications. The company is capitalizing on strong backlog and a robust project pipeline by scaling operations largely within existing facilities through process optimization and automation across epitaxy, cell production, assembly and testing, a move that reinforces its leadership in high‑performance space solar technology and supports its growth strategy in an increasingly mission‑critical segment of the semiconductor market.

The most recent analyst rating on (TSE:VNP) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on 5N Plus stock, see the TSE:VNP Stock Forecast page.

5N Plus Wins US$18.1 Million U.S. Grant to Boost Germanium Output in Utah

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. Over the next four years, the investment is expected to enable the company to recover and valorize up to 20 metric tons of high‑purity germanium annually from industrial residues and mining by‑products, bolstering U.S. supply chains for advanced defense and space technologies and reinforcing 5N Plus’s role as a strategic, domestically aligned supplier of critical semiconductor materials.

The most recent analyst rating on (TSE:VNP) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on 5N Plus stock, see the TSE:VNP Stock Forecast page.