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SXC

SunCoke EnergyNYSE:SXC Stock Report

Last Price

US$7.52

Market Cap

US$624.8m

7D

1.2%

1Y

27.2%

Updated

19 Jan, 2022

Data

Company Financials +
SXC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends2/6

SXC Stock Overview

SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil.

SunCoke Energy Competitors

CNX Resources

NYSE:CNX

US$3.4b

Alliance Resource Partners

NasdaqGS:ARLP

US$1.9b

Peabody Energy

NYSE:BTU

US$1.7b

Arch Resources

NYSE:ARCH

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for SunCoke Energy
Historical stock prices
Current Share PriceUS$7.52
52 Week HighUS$8.15
52 Week LowUS$4.91
Beta1.25
1 Month Change15.52%
3 Month Change10.75%
1 Year Change27.24%
3 Year Change-29.26%
5 Year Change-29.32%
Change since IPO-55.77%

Recent News & Updates

Nov 20

SunCoke Energy: Too Focused On Deleveraging

SunCoke Energy has seen a strong third quarter of 2021 after an equally strong second quarter that at the time saw their guidance raised. Their operating cash flow has improved almost 50% year-on-year or still a very impressive near 40% year-on-year even after removing the temporary impacts of working capital movements. This has seen their free cash flow for the first nine months of 2021 already exceed the upper end of their full-year guidance but alas, their dividends remain unchanged. They are focused on deleveraging but this seems sub-optimal for their shareholders because their leverage has already hit the low territory. Since a material portion of my bullish rating rested upon the notion that management would push their dividends higher, I believe that downgrading to a neutral rating is now appropriate.

Shareholder Returns

SXCUS Metals and MiningUS Market
7D1.2%0.3%-3.5%
1Y27.2%18.2%10.2%

Return vs Industry: SXC exceeded the US Metals and Mining industry which returned 18.2% over the past year.

Return vs Market: SXC exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is SXC's price volatile compared to industry and market?
SXC volatility
SXC Average Weekly Movement5.2%
Metals and Mining Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: SXC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SXC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19601,133Mike Rippeyhttps://www.suncoke.com

SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal.

SunCoke Energy Fundamentals Summary

How do SunCoke Energy's earnings and revenue compare to its market cap?
SXC fundamental statistics
Market CapUS$624.77m
Earnings (TTM)US$25.70m
Revenue (TTM)US$1.40b

24.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXC income statement (TTM)
RevenueUS$1.40b
Cost of RevenueUS$1.06b
Gross ProfitUS$336.10m
ExpensesUS$310.40m
EarningsUS$25.70m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)0.31
Gross Margin23.99%
Net Profit Margin1.83%
Debt/Equity Ratio112.3%

How did SXC perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

77%

Payout Ratio

Valuation

Is SunCoke Energy undervalued compared to its fair value and its price relative to the market?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXC ($7.52) is trading below our estimate of fair value ($14.64)

Significantly Below Fair Value: SXC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SXC is poor value based on its PE Ratio (24.3x) compared to the US Metals and Mining industry average (8.8x).

PE vs Market: SXC is poor value based on its PE Ratio (24.3x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: SXC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SXC is good value based on its PB Ratio (1.3x) compared to the US Metals and Mining industry average (2.2x).


Future Growth

How is SunCoke Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXC's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: SXC's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: SXC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SXC's revenue is expected to decline over the next 3 years (-5.2% per year).

High Growth Revenue: SXC's revenue is forecast to decline over the next 3 years (-5.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has SunCoke Energy performed over the past 5 years?

-32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXC has a large one-off loss of $27.3M impacting its September 30 2021 financial results.

Growing Profit Margin: SXC's current net profit margins (1.8%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: SXC has become profitable over the past 5 years, growing earnings by -32.8% per year.

Accelerating Growth: SXC's earnings growth over the past year (252.1%) exceeds its 5-year average (-32.8% per year).

Earnings vs Industry: SXC earnings growth over the past year (252.1%) exceeded the Metals and Mining industry 125.5%.


Return on Equity

High ROE: SXC's Return on Equity (6%) is considered low.


Financial Health

How is SunCoke Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SXC's short term assets ($250.6M) exceed its short term liabilities ($182.5M).

Long Term Liabilities: SXC's short term assets ($250.6M) do not cover its long term liabilities ($887.0M).


Debt to Equity History and Analysis

Debt Level: SXC's net debt to equity ratio (101.9%) is considered high.

Reducing Debt: SXC's debt to equity ratio has reduced from 139.5% to 112.3% over the past 5 years.

Debt Coverage: SXC's debt is well covered by operating cash flow (37.2%).

Interest Coverage: SXC's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is SunCoke Energy current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SXC's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: SXC's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: SXC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SXC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.4%), SXC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Mike Rippey (64 yo)

4.08yrs

Tenure

US$4,013,702

Compensation

Mr. Michael G. Rippey, also known as Mike, serves as an Associate Director of Metals Service Center Institute. He had been the Chairman of the Board, Chief Executive Officer and President of Suncoke Energy...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.01M) is above average for companies of similar size in the US market ($USD2.39M).

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


Leadership Team

Experienced Management: SXC's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: SXC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SXC insiders have only sold shares 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

SunCoke Energy, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: SunCoke Energy, Inc.
  • Ticker: SXC
  • Exchange: NYSE
  • Founded: 1960
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: US$624.770m
  • Shares outstanding: 83.08m
  • Website: https://www.suncoke.com

Number of Employees


Location

  • SunCoke Energy, Inc.
  • 1011 Warrenville Road
  • Suite 600
  • Lisle
  • Illinois
  • 60532
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:45
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.