NYSE:SXC

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 46.3% below its fair value

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value unattractive dividend payer.


Similar Companies

Share Price & News

How has SunCoke Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SXC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

SXC

1.3%

US Metals and Mining

1.7%

US Market


1 Year Return

-44.1%

SXC

12.4%

US Metals and Mining

23.6%

US Market

Return vs Industry: SXC underperformed the US Metals and Mining industry which returned 17.5% over the past year.

Return vs Market: SXC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SXCIndustryMarket
7 Day-0.8%1.3%1.7%
30 Day-0.3%0.7%3.5%
90 Day4.2%12.9%11.7%
1 Year-43.4%-44.1%15.7%12.4%26.2%23.6%
3 Year-41.6%-42.3%4.0%-1.5%53.2%43.3%
5 Year-62.6%-65.2%35.8%25.3%75.5%56.1%

Price Volatility Vs. Market

How volatile is SunCoke Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXC ($6.11) is trading below our estimate of fair value ($11.39)

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


Price To Earnings Ratio

PE vs Industry: SXC is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: SXC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SXC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SXC is good value based on its PB Ratio (1x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

-3.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SXC's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if SXC's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SXC's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: SXC's revenue is forecast to decline over the next 3 years (-3.3% 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


Next Steps

Past Performance

How has SunCoke Energy performed over the past 5 years?

45.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXC is currently unprofitable.

Growing Profit Margin: SXC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SXC is unprofitable, but has reduced losses over the past 5 years at a rate of 45.2% per year.

Accelerating Growth: Unable to compare SXC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SXC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.6%).


Return on Equity

High ROE: SXC has a negative Return on Equity (-25.99%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SunCoke Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SXC's short term assets ($320.7M) exceed its short term liabilities ($185.3M).

Long Term Liabilities: SXC's short term assets ($320.7M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: SXC's debt to equity ratio (143.2%) is considered high.

Reducing Debt: SXC's debt to equity ratio has increased from 83.9% to 143.2% over the past 5 years.

Debt Coverage: SXC's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: SXC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: SXC has a high level of physical assets or inventory.

Debt Coverage by Assets: SXC's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

3.99%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SXC's dividend (3.93%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SXC's dividend (3.93%) is in the top 25% of dividend payers in the US market (3.66%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend 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

What is the CEO of SunCoke Energy's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Mike Rippey (62yo)

2.1yrs

Tenure

US$1,671,173

Compensation

Mr. Michael G. Rippey, also known as Mike, has been the Chairman of the Board, Chief Executive Officer and President of Suncoke Energy Partners GP LLC at SunCoke Energy Partners, L.P. since December 01, 20 ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.67M) is about average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

4.3yrs

Average Tenure

50yo

Average Age

Experienced Management: SXC's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

66yo

Average Age

Experienced Board: SXC's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: SXC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,96320 Nov 19
James Sweetnam
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,300
Max PriceUS$4.71
BuyUS$94,40615 Aug 19
John Rowe
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Lead Director
Shares15,974
Max PriceUS$5.91

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.


Management Team

  • Mike Rippey (62yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$1.67m
  • Fay West (50yo)

    Senior VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$1.60m
  • Mike Hardesty (56yo)

    Senior VP of Commercial Operations

    • Tenure: 4.3yrs
    • Compensation: US$1.23m
  • Allison Lausas (39yo)

    VP of Finance & Controller

    • Tenure: 5.3yrs
  • John DiRocco

    VP, Corporate Secretary & Assistant General Counsel

    • Tenure: 4.3yrs
  • Katherine Gates (42yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$1.17m
  • Andy Kellogg

    Treasurer & Director of Investor Relations

    • Shantanu Agrawal

      Director of FP&A and Investor Relations


      Board Members

      • Peter Hamilton (72yo)

        Independent Director

        • Tenure: 8.6yrs
        • Compensation: US$194.33k
      • John Rowe (73yo)

        Non-Executive Chairman & Lead Director

        • Compensation: US$267.66k
      • Jim Sweetnam (66yo)

        Independent Director

        • Tenure: 8yrs
        • Compensation: US$194.33k
      • Mike Rippey (62yo)

        President

        • Tenure: 2.1yrs
        • Compensation: US$1.67m
      • Martha Carnes (58yo)

        Independent Director

        • Tenure: 0.08yrs
      • Susan Landahl (58yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: US$190.99k
      • Al Bledsoe (71yo)

        Independent Director

        • Tenure: 8.6yrs
        • Compensation: US$172.71k

      Company Information

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


      Key Information

      • Name: SunCoke Energy, Inc.
      • Ticker: SXC
      • Exchange: NYSE
      • Founded: 1960
      • Industry: Steel
      • Sector: Materials
      • Market Cap: US$522.266m
      • Shares outstanding: 86.76m
      • Website: https://www.suncoke.com

      Number of Employees


      Location

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

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      SXCNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2011

      Biography

      SunCoke Energy, Inc. operates as an independent producer of coke in the Americas. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. SunCoke Energy, Inc. was founded in 1960 and is headquartered in Lisle, Illinois. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 00:15
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.