SunCoke Energy, Inc. (SXC) Fundamental Analysis: Bull vs. Bear Case

SXC

SunCoke Energy, Inc.

Fundamental data last updated:August 22, 2026

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company profile

SECTOR

Energy

industry

Coal

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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. 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.

VALUATION

P/E

-12.02

Market Cap ($M USD)

$784.89M

Forward P/E

68.52 PEG

0.58 PRICE TO SALES

0.42 PRICE TO BOOK

1.36 EV / EBITDA

6.46 5-Year Average P/E

Free Cash Flow Yield

9.82%

DCF Value

$26.11

Graham Number

N/A

Price to FCF

10.18 EV to FCF

17.42 Earnings Yield

-8.32%

FCF Yield

9.82%

DIVIDEND

Yield

5.19%

Annual Payout

$0.48

Payout Ratio

-62.52%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.77

Next Year EPS Growth Estimate

$0.14

Next Year Revenue Growth Estimate

$1.64B

Return on Equity (ROE)

-10.33%

FREE CASH FLOW

Operating Margin

2.06%

Debt-to-Equity

1.15 Piotroski F-Score

2 Altman Z-Score

1.74 Return on Invested Capital (ROIC)

2.50%

Current Ratio

2.23 Quick Ratio

1.31 Net Debt to EBITDA

2.68 Interest Coverage

1.18 Gross Profit margin

6.49%

FCF PER SHARE

$0.90

REVENUE PER SHARE

$21.69

Gainseekers Quantitative Analysis

Summary

SXC SunCoke Energy, Inc. appears to be a classic case of market mispricing. Despite a DCF value significantly higher than its snapshot price, the stock’s Forward P/E of 54.22 suggests the market expects substantial future earnings growth. However, the negative Earnings Yield and a troubling Altman Z-score of 1.68 indicate financial distress and potential risk. The company’s valuation metrics, such as Price/Book and Price/Sales, suggest it’s undervalued, yet the negative ROE and EPS raise red flags about management’s effectiveness in generating shareholder value. Overall, the market seems to be betting on a turnaround that is not yet evident in the fundamentals.

AI Exposure / Tech Reliance

In the coal industry, SXC faces challenges in adapting to AI and modern tech shifts. The sector's traditional nature limits its immediate exposure to tech-driven efficiencies. However, any advancements in operational technology could enhance productivity and reduce costs, offering a potential edge.

The Bull Case

For the value or GARP investor, SXC presents an intriguing opportunity. The company's ROIC of 2.5% and a robust FCF Yield of 12.41% suggest efficient capital allocation and cash generation. Despite a low Piotroski F-Score of 2, indicating weak financial health, the operating margin of 2.06% and a solid dividend yield of 6.56% provide a cushion. These metrics hint at underlying pricing power and the potential for improved profitability, making it a speculative buy for those betting on a recovery.

The Bear Case

The bear case for SXC is compelling, with several structural risks. The negative P/E ratio and poor earnings performance highlight significant profitability issues. The company's debt/equity ratio of 1.15 and low interest coverage of 1.18 raise concerns about its ability to manage debt effectively. Additionally, the stock's proximity to its 52-week high suggests it may be technically overextended, posing a risk of correction. These factors, combined with a low Altman Z-score, paint a picture of a company struggling to maintain financial stability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$9.00

Institutional Ownership %

1-Year Beta

0.85 Insider Buying % (6 Mo)

Distance to 52-Week High

0.54%

Distance to 52-Week Low

40.32%

EARNINGS SURPRISE %

-162.50%

50-DAY SMA

$6.95

200-DAY SMA

$7.29

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.