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The Ubika Research Cleantech Stock Watchlist
| 5N Plus Inc (T. VNP) |
| Company Name: |
5N Plus Inc |
| HQ Location: |
Montreal, Quebec |
| Company Website: |
www.5nplus.com |
| Shares Outstanding |
45.61 Million |
| Stock Price (Feb 25, 2010) : |
$5.40 |
| Market Cap: |
$246.3 Million |
| 52 Week Range |
$4.4-$7.74 |
| Average Daily Volume |
167,000 |
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Share Highlight / 1-Year Stock Chart
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Business Overview
5N Plus draws its name from the purity of its products, 99.999% (five nines or 5N) and more. 5N Plus, which has its head office in Montreal, Quebec, develops and produces high-purity metals and compounds for electronic applications and provides its customers with recycling solutions. The Company is an integrated producer with both primary and secondary refining capabilities. 5N Plus focuses on specialty metals such as tellurium, cadmium and selenium and on related compounds such as cadmium telluride and cadmium sulphide. The Company's products are critical precursors in a number of electronic applications, including the rapidly-expanding solar (thin-film photovoltaic) market, for which 5N Plus is a major supplier of cadmium telluride, and the radiation detector market.+ More info
What is interesting?
- One of the few clean tech companies with real revenues and real profits. Serves the fast growing solar industry. A significant competitive advantage of 5N Plus is that not only does the company offer products for manufacture of solar panels but also offer recycling solutions to customers for their unwanted material and for finished products that have reached the end of life. Given that their customers are in the environmentally sensitive solar industry, and regulations governing disposal of the materials with certain metals, this offers significant advantage for 5N Plus
- While there was as decline in the revenues in second quarter fiscal 2010 the order backlog hasn’t declined significantly. Since 2007 for the first two full years the revenue grew 78% (Compounded Annual Growth Rate) and EBITDA increased 116% CAGR during the same two year period
- Well capitalized with good cash position of over $60 Million dollars allows the company to invest for growth
- Increased their contract to supply to the world’s largest solar manufacturer, First Solar which bodes well and the contract extends to 2013
- Has manufacturing operation in Montreal and in Germany. Germany is the leader in the Solar industry and having a European presence allows the company to serve the European market, which is much more advanced than in North America as government incentives and renewable energy mandate have been in place for a longer period there.
- Expanding its product portfolio to target additional markets like semiconductor wafer business. Recently, did the acquisition of Firebird Technologies, a producer of pure metals and semiconductor products.
- Numerous other solar panel manufacturers are emerging and the company is well positioned to grow its business.
- Solar production cost has moved below the critical $1 per watt watermark with the thin film technologies to which 5N Plus caters to. Hence, the viability of Solar has been improving in the recent years.
- The Green Energy Act of Ontario is expected to result in a surge in demand in Ontario as this gives significant financial incentives for Ontario home owners to install solar panels.
- Company has technology leadership, is an integrated producer and good relationship with raw material suppliers
- Stock hasn’t done anything much in last one year
Risks
The end demand for the company’s products is driven by government incentives which can often change based on government budget constraints. For example, Germany recently made some changes in their incentive programs which affected the business prospects in that market.
Company News
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