TSX:VNP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value 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

Stable Share Price: VNP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

VNP

1.4%

CA Chemicals

-1.6%

CA Market


1 Year Return

-20.8%

VNP

-18.8%

CA Chemicals

-7.8%

CA Market

Return vs Industry: VNP underperformed the Canadian Chemicals industry which returned -18.8% over the past year.

Return vs Market: VNP underperformed the Canadian Market which returned -7.8% over the past year.


Shareholder returns

VNPIndustryMarket
7 Day-3.8%1.4%-1.6%
30 Day-10.1%3.6%-2.8%
90 Day7.2%17.2%5.5%
1 Year-20.8%-20.8%-15.0%-18.8%-4.6%-7.8%
3 Year-42.1%-42.1%-39.3%-45.8%7.6%-2.8%
5 Year49.2%49.2%-15.8%-30.5%40.9%19.2%

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

Below Fair Value: VNP (CA$1.79) is trading below our estimate of fair value (CA$3.87)

Significantly Below Fair Value: 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 (31.7x) compared to the CA Chemicals industry average (28.2x).

PE vs Market: VNP is poor value based on its PE Ratio (31.7x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: VNP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: VNP is good value based on its PB Ratio (0.9x) compared to the CA Chemicals industry average (1.9x).


Next Steps

Future Growth

How is 5N Plus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

66.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNP's forecast earnings growth (66.3% per year) is above the savings rate (1.7%).

Earnings vs Market: VNP's earnings (66.3% per year) are forecast to grow faster than the Canadian market (23.1% per year).

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

Revenue vs Market: VNP's revenue (4.1% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: VNP's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

69.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VNP has high quality earnings.

Growing Profit Margin: VNP's current net profit margins (1.9%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: VNP has become profitable over the past 5 years, growing earnings by 69.2% per year.

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 (-56.5%) over the past year, making it difficult to compare to the Chemicals industry average (-16.8%).


Return on Equity

High ROE: VNP's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is 5N Plus's financial position?


Financial Position Analysis

Short Term Liabilities: VNP's short term assets ($142.8M) exceed its short term liabilities ($31.3M).

Long Term Liabilities: VNP's short term assets ($142.8M) exceed its long term liabilities ($75.1M).


Debt to Equity History and Analysis

Debt Level: VNP's debt to equity ratio (47%) is considered high.

Reducing Debt: VNP's debt to equity ratio has increased from 42.8% to 47% over the past 5 years.

Debt Coverage: VNP's debt is well covered by operating cash flow (48%).

Interest Coverage: VNP's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

AJ Roshan (49 yo)

4.58yrs

Tenure

US$2,846,527

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 ($USD1.64M) is above average for companies of similar size in the Canadian market ($USD176.89K).

Compensation vs Earnings: AJ's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arjang Roshan
President4.58yrsUS$2.85m0.30%
$ 447.5k
Richard Perron
Chief Financial Officer6.5yrsUS$675.79kno data
Nicholas Audet
Executive Vice President of Electronic Materials3.58yrsUS$657.90k0.091%
$ 134.3k
Paul Tancell
Executive Vice President of Eco-Friendly Materials3.58yrsUS$634.08k0.061%
$ 89.5k

4.1yrs

Average Tenure

Experienced Management: VNP's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arjang Roshan
President4.58yrsUS$2.85m0.30%
$ 447.5k
Nathalie Le Prohon
Independent Director6.33yrsUS$118.00k0.25%
$ 373.8k
Jean-Marie Bourassa
Independent Director12.75yrsUS$125.00k1.49%
$ 2.2m
Luc Bertrand
Independent Chairman4.67yrsUS$150.00k1.86%
$ 2.7m
James Fahey
Independent Director6.33yrsUS$113.00k0.20%
$ 294.5k
Gervais Jacques
Independent Director0.33yrno data0.021%
$ 31.3k

5.5yrs

Average Tenure

57yo

Average Age

Experienced Board: VNP's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$146.999m
  • Shares outstanding: 82.12m
  • 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 engineered materials and specialty chemicals 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 Analysis2020/09/24 06:46
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.