Read This to Understand 5N Plus (FPLSF)

Today we're going to take a closer look at Small-Cap Basic Materials company 5N Plus, whose shares are currently trading at $2.9. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

5N Plus's Valuation Is in Line With Its Sector Averages:

5N Plus Inc. produces and sells specialty metals and chemicals in North America, Europe, and Asia. The company belongs to the Basic Materials sector, which has an average price to earnings (P/E) ratio of 10.03 and an average price to book (P/B) ratio of 2.08. In contrast, 5N Plus has a trailing 12 month P/E ratio of -16.1 and a P/B ratio of 2.07.

The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (k) $195,971 $177,192 $209,990 $264,223
Gross Margins 17.7% 20.5% 18.5% 18.4%
Operating Margins 4.2% 7.6% 6.1% -4.9%
Net Margins 0.91% 1.23% 1.48% -8.7%
Net Income (k) $1,785 $2,186 $3,110 -$22,999
Net Interest Expense (k) -$4,079 -$3,490 -$3,713 -$5,192
Depreciation & Amort. (k) -$11,139 -$11,725 -$12,535 -$17,732
Earnings Per Share $0.02 $0.03 $0.04 -$0.18
EPS Growth n/a 50.0% 33.33% -550.0%
Diluted Shares (k) 83,959 82,468 82,787 88,455
Free Cash Flow (k) -$7,581 $28,251 $4,344 $6,686
Capital Expenditures -$10,262 -$8,554 -$5,926 -$17,055
Net Current Assets (k) $32,068 $42,593 -$41,821 -$48,047
Current Ratio 3.91 4.13 3.01 2.98
Long Term Debt (k) $55,000 $50,000 $116,000 $121,000
Net Debt / EBITDA 1.92 0.52 3.3 17.35

5N Plus suffers from slimmer gross margins than its peers, weak operating margins with a negative growth trend, and declining EPS growth. The firm's financial statements also exhibit an unconvincing cash flow history and a highly leveraged balance sheet. On the other hand, the company benefits from growing revenues and increasing reinvestment in the business and an excellent current ratio.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.