Want to see TSE:VNP full AI Analyst Report?
Top Page
5N Plus
(TSX:VNP)
Select Model
Select Model
Rating:62Neutral
Price Target:
C$28.00
▲(6.63% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by solid underlying profitability and improving leverage, reinforced by a generally constructive earnings call with reaffirmed EBITDA guidance and strong backlog. These positives are tempered by weak cash conversion/negative TTM free cash flow, bearish technical signals, and a high P/E that leaves less margin for error if margin pressures persist.
Positive Factors
Strong growth and backlog
Strong growth across key segments and a maximum-length semiconductor backlog indicate durable customer demand and improving commercial momentum. This visibility can support capacity utilization, planning, and continued revenue expansion over the next several quarters.
Negative Factors
Input-cost margin pressure
Higher metal and chemical costs are reducing profitability while contractual pass-through is incomplete and delayed. This creates a sustained risk that revenue growth will translate into less earnings growth until pricing resets, with recovery dependent on customer terms.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and backlog
Strong growth across key segments and a maximum-length semiconductor backlog indicate durable customer demand and improving commercial momentum. This visibility can support capacity utilization, planning, and continued revenue expansion over the next several quarters.
Read all positive factors
5N Plus (VNP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.28B
Dividend YieldN/A
Average Volume (3M)668.51K
Price to Earnings (P/E)27.3
Beta (1Y)0.80
Revenue Growth32.53%
EPS Growth93.32%
CountryCA
Employees849
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.69
Shares Outstanding89,935,326
10 Day Avg. Volume622,286
30 Day Avg. Volume668,507
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$42.20Price Target Upside60.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.68
Revenue Forecast (FY)C$484.18M
5N Plus Business Overview & Revenue Model
Company Description
Headquartered in Montreal, Canada, 5N Plus Inc. is a global leader in the production and sale of semiconductors. Its operations span North America, Europe, and Asia, structured across two main segments: Specialty Semiconductors and Performance Mat...
How the Company Makes Money
5N Plus makes money primarily by selling specialty, high-purity metal products and engineered compounds to industrial customers under supply agreements and purchase orders, with revenues recognized from the delivery of these materials.
Key revenu...
5N Plus Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call presents a positive operational and commercial picture driven by strong top-line growth (Q2 revenue +28%, H1 +30%), segment momentum (Specialty Semiconductors and Performance Materials), a heavily booked backlog and a materially strengthened balance sheet (net debt down to $23.7M, net debt/EBITDA 0.21x). However, significant near-term margin pressure from higher metal and chemical costs, temporary unplanned equipment maintenance and a Q2 deterioration in operating cash flow temper the outlook. Management expects many issues to be temporary, has reaffirmed full-year adjusted EBITDA guidance ($100–105M) and plans to recover some input-cost impacts over subsequent quarters, leaving the call overall tilted toward cautious optimism.Positive Updates
Strong Top-Line Growth
Revenue increased 28% year-over-year in Q2 to $122.4 million and 30% year-to-date to $240.3 million, driven primarily by higher volumes in renewable energy and favorable product mix in space.
Negative Updates
Margin Contraction
Adjusted gross margin dollars increased but margin percentage fell to 30.3% in Q2 from 34.6% a year earlier (a decline of ~430 basis points). Management attributes this to higher metal input costs, elevated chemical costs and temporary operational inefficiencies.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Revenue increased 28% year-over-year in Q2 to $122.4 million and 30% year-to-date to $240.3 million, driven primarily by higher volumes in renewable energy and favorable product mix in space.
Read all positive updates
Company Guidance
Management reaffirmed 2026 full‑year adjusted EBITDA guidance of $100–$105 million after reporting H1 adjusted EBITDA of $55.8M (Q2 $26.6M, +10% YoY) and H1 revenue of $240.3M (Q2 $122.4M, +28%; H1 +30% YoY); adjusted gross margin was $37.0M or 30.3% of sales in Q2 (vs $33.0M/34.6% a year ago; H1 32.6%) and net earnings were $19.7M or $0.22/share in Q2. Specialty Semiconductors posted $89.2M revenue (+25%), adjusted EBITDA $22.1M and backlog at 365 days, while Performance Materials delivered $33.2M revenue (+38%), adjusted EBITDA $8.5M and a 99‑day backlog. Management flagged near‑term margin pressure from higher metal and chemical costs that are only partially recoverable with at least a two‑quarter lag, said Q2 margins are a reasonable H2 proxy within ~1 percentage point, expects no H2 delivery disruptions, reported YTD CapEx of $16.6M, cash used in operations in Q2 of $1.9M, and net debt of $23.7M (net debt/adj. EBITDA 0.21x).5N Plus Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
53
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 442.28M | 397.91M | 289.28M | 242.37M | 264.22M | 209.99M |
| Gross Profit | 128.00M | 118.11M | 77.87M | 57.54M | 48.51M | 38.78M |
| EBITDA | 109.65M | 93.15M | 49.82M | 43.88M | 5.17M | 25.24M |
| Net Income | 62.29M | 51.45M | 14.67M | 15.40M | -23.00M | 3.11M |
Balance Sheet | ||||||
| Total Assets | 512.93M | 474.27M | 376.91M | 350.20M | 347.99M | 373.59M |
| Cash, Cash Equivalents and Short-Term Investments | 55.30M | 61.66M | 22.14M | 34.71M | 42.69M | 35.94M |
| Total Debt | 107.28M | 139.99M | 151.60M | 138.64M | 151.40M | 148.64M |
| Total Liabilities | 276.99M | 275.66M | 237.89M | 221.61M | 235.21M | 237.34M |
| Stockholders Equity | 235.93M | 198.60M | 139.02M | 128.59M | 112.78M | 136.25M |
Cash Flow | ||||||
| Free Cash Flow | -4.68M | 48.07M | -28.07M | -992.00K | 6.69M | 4.34M |
| Operating Cash Flow | 23.69M | 68.57M | -6.89M | 17.25M | 23.74M | 10.27M |
| Investing Cash Flow | 28.72M | -14.14M | -17.98M | -12.36M | -18.99M | -49.93M |
| Financing Cash Flow | -45.16M | -16.74M | 12.39M | -13.00M | 2.41M | 36.22M |
5N Plus Technical Analysis
Negative
26.26
Price Trends
31.88
Negative
35.62
Negative
30.35
Negative
Market Momentum
-1.86
Negative
39.52
Neutral
62.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VNP, the sentiment is Negative. The current price of 26.26 is below the 20-day moving average (MA) of 26.74, below the 50-day MA of 31.88, and below the 200-day MA of 30.35, indicating a bearish trend. The MACD of -1.86 indicates Negative momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 62.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VNP.
5N Plus Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | C$2.28B | 27.30 | 29.60% | ― | 32.53% | 93.32% | |
59 Neutral | C$1.43B | 6,366.75 | 0.21% | 1.30% | 23.69% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | C$324.31M | -11.80 | -475.00% | ― | 77.39% | -226.10% | |
50 Neutral | C$1.85B | -74.69 | -49.29% | ― | 187.97% | -123.75% | |
47 Neutral | C$94.63M | -5.90 | -81.75% | ― | ― | -42.93% | |
39 Underperform | C$14.03M | -5.93 | -76.50% | ― | -42.97% | -34.24% |
* General Sector Average
TSE:VNP
5N Plus
25.96
10.86
71.92%
TSE:CNO
California Nanotechnologies
0.30
-0.02
-6.25%
TSE:NANO
Nano One Materials
0.83
-0.07
-7.78%
TSE:NEO
Neo Performance Materials Inc
29.95
13.43
81.33%
TSE:GMG
Graphene Manufacturing Group Ltd
2.50
1.69
208.64%
TSE:HG
Hydrograph Clean Power
4.95
3.30
200.00%
5N Plus Corporate Events
Business Operations and StrategyPrivate Placements and Financing
5N Plus Wins US$7.3 Million U.S. Defence Award to Launch Domestic GaAs Production
Positive
Sep 3, 2026
5N Plus Inc., a Montréal-based producer of specialty semiconductors and performance materials serving sectors such as renewable energy, security, space, pharmaceuticals and medical imaging, operates global RD and manufacturing facilities in E...
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.