| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 2/6 |
SXC Stock Overview
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 3.1% per year for the next 3 years
+ 1 more risk
SunCoke Energy Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$7.52 |
| 52 Week High | US$8.15 |
| 52 Week Low | US$4.91 |
| Beta | 1.25 |
| 1 Month Change | 15.52% |
| 3 Month Change | 10.75% |
| 1 Year Change | 27.24% |
| 3 Year Change | -29.26% |
| 5 Year Change | -29.32% |
| Change since IPO | -55.77% |
Recent News & Updates
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
| SXC | US Metals and Mining | US Market | |
|---|---|---|---|
| 7D | 1.2% | 0.3% | -3.5% |
| 1Y | 27.2% | 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
| SXC volatility | |
|---|---|
| SXC Average Weekly Movement | 5.2% |
| Metals and Mining Industry Average Movement | 8.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.8% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1960 | 1,133 | Mike Rippey | https://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
| SXC fundamental statistics | |
|---|---|
| Market Cap | US$624.77m |
| Earnings (TTM) | US$25.70m |
| Revenue (TTM) | US$1.40b |
24.3x
P/E Ratio0.4x
P/S RatioIs SXC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SXC income statement (TTM) | |
|---|---|
| Revenue | US$1.40b |
| Cost of Revenue | US$1.06b |
| Gross Profit | US$336.10m |
| Expenses | US$310.40m |
| Earnings | US$25.70m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 01, 2022
| Earnings per share (EPS) | 0.31 |
| Gross Margin | 23.99% |
| Net Profit Margin | 1.83% |
| Debt/Equity Ratio | 112.3% |
How did SXC perform over the long term?
See historical performance and comparisonDividends
3.2%
Current Dividend Yield77%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:45 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.