TSX:VNP

Stock Analysis Report

Executive Summary

5N Plus Inc. produces and sells specialty chemicals and engineered materials in Europe, Asia, the Americas, and internationally.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has 5N Plus's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.7%

VNP

-3.0%

CA Chemicals

0.1%

CA Market


1 Year Return

-26.6%

VNP

-17.5%

CA Chemicals

1.6%

CA Market

Return vs Industry: VNP underperformed the Canadian Chemicals industry which returned -17.5% over the past year.

Return vs Market: VNP underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

VNPIndustryMarket
7 Day6.7%-3.0%0.1%
30 Day-3.0%-5.9%-2.9%
90 Day-17.1%-5.4%-1.4%
1 Year-26.6%-26.6%-14.7%-17.5%5.2%1.6%
3 Year27.4%27.4%-10.5%-15.7%13.8%3.7%
5 Year-14.9%-14.9%-24.8%-32.3%25.3%7.2%

Price Volatility Vs. Market

How volatile is 5N Plus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 5N Plus undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VNP (CA$2.23) is trading below our estimate of fair value (CA$17.43)

Significantly Undervalued: VNP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VNP is poor value based on its PE Ratio (17.6x) compared to the Chemicals industry average (14.4x).

PE vs Market: VNP is poor value based on its PE Ratio (17.6x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: VNP is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: VNP is overvalued based on its PB Ratio (1.2x) compared to the CA Chemicals industry average (1.2x).


Next Steps

Future Growth

How is 5N Plus forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

52.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNP's forecast earnings growth (52.3% per year) is above the savings rate (1.9%).

Earnings vs Market: VNP's earnings (52.3% per year) are forecast to grow faster than the Canadian market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VNP's revenue (6.8% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: VNP's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if VNP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has 5N Plus performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VNP's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: VNP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VNP had negative earnings growth (-25.7%) over the past year, making it difficult to compare to the Chemicals industry average (-25.7%).


Return on Equity

High ROE: VNP's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: VNP has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: VNP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is 5N Plus's financial position?


Financial Position Analysis

Short Term Liabilities: VNP's short term assets ($151.1M) exceeds its short term liabilities ($36.3M)

Long Term Liabilities: VNP's short term assets (151.1M) exceeds its long term liabilities (82.7M)


Debt to Equity History and Analysis

Debt Level: VNP's debt to equity ratio (47.4%) is considered high

Reducing Debt: VNP's debt to equity ratio has reduced from 48.1% to 47.4% over the past 5 years.

Debt Coverage: VNP's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: VNP's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: VNP has a high level of physical assets or inventory.

Debt Coverage by Assets: VNP's debt is covered by short term assets (assets are 2.741580x debt).


Next Steps

Dividend

What is 5N Plus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate VNP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VNP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if VNP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VNP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VNP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of 5N Plus's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

AJ Roshan (48yo)

3.7yrs

Tenure

US$1,536,242

Compensation

Mr. Arjang J. Roshan, also known as AJ, has been Chief Executive Officer and President at 5N Plus Inc. since February 15, 2016. He has 25 years of international and executive experience in managing and gro ...


CEO Compensation Analysis

Compensation vs. Market: AJ's total compensation ($USD1.17M) is about average for companies of similar size in the Canadian market ($USD121.84K).

Compensation vs Earnings: AJ's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: VNP's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

59yo

Average Age

Experienced Board: VNP's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: VNP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$96,00030 Aug 19
Arjang Roshan
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceUS$2.40
BuyUS$56,80823 Aug 19
Arjang Roshan
EntityIndividual
Role
Chief Executive Officer
President
Shares25,200
Max PriceUS$2.28
BuyUS$117,50019 Aug 19
Paul Tancell
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Eco-Friendly Materials
Shares50,000
Max PriceUS$2.35
BuyUS$22,32316 Aug 19
Arjang Roshan
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$2.24
BuyUS$56,11113 Aug 19
Arjang Roshan
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$2.32
BuyUS$25,79910 Jun 19
Arjang Roshan
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$2.58
BuyUS$143,82409 May 19
Luc Bertrand
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares50,000
Max PriceUS$2.89

Ownership Breakdown


Management Team

  • Jean Mayer

    VP of Legal Affairs & Corporate Secretary

    • Tenure: 7.2yrs
  • Nicholas Audet

    Executive Vice President of Electronic Materials

    • Tenure: 2.7yrs
    • Compensation: US$562.74k
  • AJ Roshan (48yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$1.54m
  • Richard Perron

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: US$611.41k
  • Paul Tancell

    Executive Vice President of Eco-Friendly Materials

    • Tenure: 2.7yrs
    • Compensation: US$546.83k
  • Evelyne Bundock

    Vice President of Human Resources

    • Tenure: 2.3yrs

Board Members

  • Don Osborne (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$100.00k
  • Jennie Hwang (71yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$113.00k
  • Nathalie Le Prohon (57yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$118.00k
  • Jean-Marie Bourassa (68yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$125.00k
  • Luc Bertrand (64yo)

    Independent Chairman

    • Tenure: 3.8yrs
    • Compensation: US$150.00k
  • Jim Fahey (55yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$113.00k
  • AJ Roshan (48yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$1.54m

Company Information

5N Plus Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 5N Plus Inc.
  • Ticker: VNP
  • Exchange: TSX
  • Founded:
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CA$185.855m
  • Shares outstanding: 83.34m
  • Website: https://www.5nplus.com

Number of Employees


Location

  • 5N Plus Inc.
  • 4385 Garand Street
  • Montreal
  • Quebec
  • H4R 2B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNPTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2007
EMBBST (Boerse-Stuttgart)YesCommon SharesDEEURDec 2007
FPLS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2007

Biography

5N Plus Inc. produces and sells specialty chemicals and engineered materials in Europe, Asia, the Americas, and internationally. It operates in two segments, Electronic Materials and Eco-Friendly Materials ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:56
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.