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Suncoke Energy Inc (SXC)
NYSE:SXC
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Suncoke Energy
(NYSE:SXC)
72Outperform
Positive Factors
Earnings
SXC reported 4Q adj. EBITDA of $66M, topping the $63M consensus.
Liquidity
Liquidity also improved sequentially to $540M from $515M in 3Q with the entire $350M revolver remaining available.
Logistics expansion
The KRT expansion is on time and budget, potentially increasing logistics throughput in the second half.
Negative Factors
Coke business contribution
The decline is largely driven by a lower expected contribution from the domestic coke business.
Contract economics
Reduced economics on the extended Granite City contract as well as more spot exposure in the second half at Haverhill will likely weigh on results.
Margins
Margins will be pressured due to the combination of reduced economics on the previously extended Granite City contract as well as more spot exposure at Haverhill.
Suncoke Energy (SXC) vs. S&P 500 (SPY)
Market Cap
$774.56M
Dividend Yield5.03%
Average Volume (3M)946.18K
Price to Earnings (P/E)8.4
Beta (1Y)0.78
Revenue Growth-8.76%
EPS Growth51.59%
CountryUS
Employees1,168
SectorBasic Materials
Sector Strength59
IndustryCoal
Share Statistics
EPS (TTM)1.09
Shares Outstanding84,651,100
10 Day Avg. Volume815,072
30 Day Avg. Volume946,183
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.45
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.37
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.00Price Target Upside42.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Suncoke Energy Business Overview & Revenue Model
Company DescriptionSunCoke 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. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates five cokemaking facilities in the United States and one cokemaking facility in Brazil. SunCoke Energy, Inc. was founded in 1960 and is headquartered in Lisle, Illinois.
How the Company Makes MoneySunCoke Energy makes money through the production and sale of metallurgical coke, which is a critical component in steelmaking. The company's revenue streams are primarily derived from long-term, take-or-pay contracts with steel producers who purchase coke for their operations. Additionally, SunCoke Energy generates revenue from its logistics segment, which provides material handling and transportation services. The company's proprietary heat recovery technology also contributes to its earnings by generating steam and electricity, which are sold to power grids or used internally, enhancing operational efficiency and offering a secondary revenue stream. Strategic partnerships with major steel manufacturers and a focus on efficiency and sustainability further bolster the company's profitability.
Suncoke Energy Financial Statement Overview
Summary
Suncoke Energy demonstrates solid financial health with effective cost management, moderate profitability, and efficient cash flow operations. While revenue growth has been inconsistent, the company maintains operational efficiency and a stable capital structure. Managing leverage and enhancing revenue growth could further strengthen financial performance.Income Statement
Suncoke Energy's income statement shows a stable gross profit margin at 34.67% for TTM, indicating effective cost management. The net profit margin is 4.95%, with a slight decrease from the previous year, suggesting moderate profitability. Revenue growth has been inconsistent, with a decline in TTM revenue compared to the previous annual report. However, the EBIT and EBITDA margins remain robust at 7.84% and 13.80% respectively, highlighting operational efficiency.―
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 0.72 for TTM, which indicates a moderate level of leverage. Return on equity stands at 13.62%, reflecting a solid return on shareholder investments. With an equity ratio of 41.02%, Suncoke Energy maintains a stable capital structure, though there is room for improvement in reducing debt levels.70
Cash Flow
The cash flow statement highlights a strong operating cash flow to net income ratio of 1.98 and a free cash flow to net income ratio of 1.31 for TTM, indicating efficient cash flow management and capacity to cover net income with cash. Free cash flow growth shows an increase, contributing positively to the financial health.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.94B | 2.06B | 1.97B | 1.46B | 1.33B | Gross Profit |
| 332.00M | 338.60M | 367.60M | 337.20M | 284.80M | EBIT |
| 151.90M | 125.10M | 153.70M | 141.50M | 69.70M | EBITDA |
| 270.80M | 267.90M | 296.20M | 243.50M | 210.20M | Net Income Common Stockholders |
| 95.90M | 57.50M | 100.70M | 43.40M | 8.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 189.60M | 140.10M | 90.00M | 63.80M | 48.40M | Total Assets |
| 1.67B | 1.66B | 1.65B | 1.62B | 1.61B | Total Debt |
| 495.00M | 490.30M | 532.20M | 613.60M | 676.90M | Net Debt |
| 305.40M | 350.20M | 442.20M | 549.80M | 628.50M | Total Liabilities |
| 957.20M | 1.01B | 1.03B | 1.08B | 1.11B | Stockholders Equity |
| 680.20M | 614.20M | 585.60M | 498.10M | 469.00M |
| Cash Flow | Free Cash Flow | |||
| 95.90M | 139.80M | 133.40M | 134.50M | 83.90M | Operating Cash Flow |
| 168.80M | 249.00M | 208.90M | 233.10M | 157.80M | Investing Cash Flow |
| -72.30M | -109.20M | -70.20M | -99.30M | -75.30M | Financing Cash Flow |
| -47.00M | -89.70M | -112.50M | -118.40M | -131.20M |
Suncoke Energy Technical Analysis
Negative
9.15
Price Trends
9.14
Positive
9.73
Negative
9.62
Negative
Market Momentum
0.06
Positive
48.30
Neutral
28.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXC, the sentiment is Negative. The current price of 9.15 is above the 20-day moving average (MA) of 9.10, above the 50-day MA of 9.14, and below the 200-day MA of 9.62, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SXC.
Suncoke Energy Risk Analysis
Suncoke Energy disclosed 34 risk factors in its most recent earnings report. Suncoke Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Suncoke Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.56B | 4.74 | 10.41% | 2.34% | -14.50% | -46.36% | |
74 Outperform | $1.35B | 9.08 | 32.48% | 2.91% | -16.56% | -24.95% | |
73 Outperform | $1.65B | 8.91 | 11.64% | 0.36% | -14.81% | -71.49% | |
72 Outperform | $774.56M | 8.39 | 14.26% | 5.03% | -8.76% | 51.59% | |
67 Neutral | $2.49B | 23.54 | 5.20% | 0.68% | -21.04% | -75.78% | |
49 Neutral | $1.95B | -1.27 | -21.38% | 3.72% | 0.83% | -29.30% | |
39 Underperform | $630.03M | ― | -121.29% | ― | -37.38% | -494.24% |
* Basic Materials Sector Average
Performance Comparison
SXC
Suncoke Energy
9.15
-0.67
-6.82%
HNRG
Hallador Energy Company
14.66
9.56
187.45%
NRP
Natural Resource PRN
103.02
17.10
19.90%
AMR
Alpha Metallurgical Resources
126.69
-169.95
-57.29%
HCC
Warrior Met Coal
47.39
-17.09
-26.50%
BTU
Peabody Energy Comm
12.81
-8.74
-40.56%
Suncoke Energy Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -6.63%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
SunCoke Energy demonstrated strong liquidity and growth in its logistics segment, maintaining its dividend and reaffirming full-year guidance despite a decline in adjusted EBITDA and net income due to challenging market conditions. The company is cautiously managing CapEx in response to uncertainties.Q1-2025 Updates
Positive Updates
Strong Liquidity Position
SunCoke Energy ended the first quarter with a liquidity position of $543.7 million, including a cash balance of $193.7 million and a fully undrawn revolver of $350 million.
Logistics Business Performance
Logistics segment generated $13.7 million in adjusted EBITDA in Q1 2025, up from $13 million in Q1 2024, driven by higher transloading volumes at CMT.
Dividend Announcement
SunCoke Energy announced a $0.12 per share dividend payable to shareholders on June 2, 2025.
Reaffirmed Full Year Guidance
The company reaffirmed its full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million.
Negative Updates
Decreased Adjusted EBITDA
Consolidated adjusted EBITDA for Q1 2025 was $59.8 million compared to $67.9 million in the prior year period, mainly due to lower economics on the Granite City contract extension and lower spot blast coke sales volumes.
Net Income Decline
Net income attributable to SunCoke was $0.20 per share in Q1 2025, down $0.03 from the prior year period.
Challenging Spot Coke Market
The spot blast coke pricing environment remains highly challenged, impacting Domestic Coke business with lower sales volumes.
Potential CapEx Reduction
The company may not spend the planned $65 million in CapEx for the year, deferring some non-essential projects due to economic uncertainties.
Company Guidance
During the SunCoke Energy Q1 2025 earnings call, the company reaffirmed its full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million. In the first quarter, SunCoke reported a consolidated adjusted EBITDA of $59.8 million, down from $67.9 million in the same period last year, primarily due to lower economics from the Granite City contract extension and reduced spot blast coke sales volumes. Despite these challenges, SunCoke maintained a strong liquidity position of $543.7 million and declared a $0.12 per share dividend payable on June 2, 2025. The Domestic Coke segment achieved a first-quarter adjusted EBITDA of $49.9 million, with sales volumes of 898,000 tons, while the Logistics segment generated $13.7 million in adjusted EBITDA, driven by higher transloading volumes. SunCoke's net income was $0.20 per share, and they ended the quarter with a cash balance of $193.7 million. The company plans to continue its disciplined approach to capital allocation, including potential growth opportunities.Suncoke Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
SunCoke Energy Reports Q1 2025 Financial Results
Neutral
Apr 30, 2025
On April 30, 2025, SunCoke Energy reported its financial results for the first quarter of 2025, showing a net income of $19.4 million, a decrease from $21.1 million in the previous year. The company faced challenges in the steel industry, impacting its Domestic Coke segment with reduced revenues and adjusted EBITDA due to lower spot coke sales and contract extension economics at Granite City. Despite these challenges, the logistics segment performed well with increased revenues and adjusted EBITDA driven by higher transloading volumes. SunCoke extended its Granite City contract with U.S. Steel and reaffirmed its full-year 2025 adjusted EBITDA guidance, indicating a strategic focus on navigating market uncertainties.
Spark’s Take on SXC Stock
According to Spark, TipRanks’ AI Analyst, SXC is a Neutral.
Suncoke Energy’s overall score reflects strong operational efficiency and a healthy capital structure but is tempered by declining revenue and cash flow challenges. The stock’s technical analysis shows mixed signals, and while its valuation is attractive, market challenges and cautious guidance impact the outlook. Investors should consider the company’s strong dividend yield and manage expectations regarding future performance.
To see Spark’s full report on SXC stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.