Is 5N Plus (TSX:VNP) Undervalued As Its Utah Expansion Lifts Growth Capacity?

Why 5N Plus Stock Is Back in Focus After Its Utah Expansion Plan

5N Plus (TSX:VNP) put its St. George, Utah site at the center of its growth story with plans to expand the facility by about 50%, funded within existing capital spending plans.

The project is aimed squarely at advanced materials for defence, space solar, medical imaging and industrial sensing. It is also intended to reinforce critical mineral transformation supply chains across North America for customers that rely on secure sourcing.

The Utah expansion headlines arrive after a sharp reset in 5N Plus share price momentum. The stock has a 30 day share price return of 29.6%, but that follows a 23% price decline over 90 days. Meanwhile, the 3 year total shareholder return above 9x and the 5 year total shareholder return above 11x point to very strong longer term gains.

Spot similar momentum and supply chain plays by scanning our hand picked list of 33 best rare earth metal stocks .

After a sharp rebound and with 5N Plus trading at a meaningful discount to the average analyst target, but close to some intrinsic estimates, where does a fair price really sit for this Utah expansion story?

Most Popular Narrative: 26% Undervalued

Against the last close at CA$33.10, the most followed narrative anchors 5N Plus fair value at about CA$44.76 using a discounted cash flow framework built on explicit revenue and earnings assumptions.

The expansion of the long-term supply agreement with First Solar positions 5N Plus as a critical U.S.-based supplier to the leading American solar panel manufacturer, aligning with accelerating clean energy adoption and North American supply chain security. This is expected to drive sustained and step-wise increases in semiconductor compound volumes (33% in 2025-26, with another 25% lift in 2027-28) and support multi-year revenue and earnings growth, with minimal additional capital investment required.

See why 24 investors see 5N Plus as 26% undervalued .

Result: Fair Value of CA$44.76 (UNDERVALUED)

Still, the 5N Plus story can break if reliance on a few large customers tightens, or if solar and defense demand undershoots the analyst growth playbook.

Find out about the key risks to this 5N Plus narrative .

Another View: How 5N Plus Looks On Earnings Multiples

The DCF narrative paints 5N Plus as 26% undervalued around CA$44.76. The picture shifts when you look at the P/E. At 33.1x earnings, the shares trade well above the North American Chemicals industry on 21.8x and above peers on 22.4x, while the fair ratio sits at 15.8x. That wide gap points to richer expectations baked into the price. The question is whether you think the Utah expansion and long-contract exposure justify paying that much extra for each dollar of profit.