One-glance verdict
Undervalued
$34.39 our estimate vs market $9.70
Wall Street consensus: $11.50 (-66.6% lower than our fair-value estimate)
72% below our estimate, below the bear case
Fundamentals snapshot
SunCoke Energy, Inc.
SXC · NYQ · Basic Materials · Coking Coal
Current price
$9.70
52-week range
$5.52 - $11.60
Market cap
$823.29M
Balance sheet
Stretched
1.62x Concerning
Net debt $550.80M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.2% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 37.0% over 3 years.
- Risk Insider ownership is only 1.1% (peer median: 9.4%).
What this company does
SunCoke Energy, Inc.
SunCoke Energy makes a special kind of fuel called coke that steel factories need to make steel, and they also provide services to help other heavy industries manage their materials. The money they make mostly comes from selling this coke and their material handling services. This matters because they are a key part of the production process for essential things like steel, which is used everywhere.
How the company got here
SunCoke Energy, Inc. was founded in 1960 and has grown into a significant player in the coking coal industry. The company's history is rooted in providing essential materials for steel production. Over the decades, it has evolved its operations to include a wider range of industrial services beyond just coke production, adapting to the changing needs of its customers in the steel, power, and manufacturing sectors. This strategic expansion has allowed SunCoke to build a more diversified business model.
What it actually does
SunCoke Energy is primarily involved in producing coke, a crucial fuel for making steel, and providing various industrial and logistics services. Think of coke as a super-heated, purified form of coal that's essential for the intense heat needed in blast furnaces to melt iron ore into steel. Beyond coke, the company also handles materials like coal and steel byproducts, and offers services to help steel mills manage their scrap metal and other operational needs.
Domestic Coke
This segment is focused on producing and selling coke, which is a key ingredient used in blast furnaces to make steel. SunCoke operates cokemaking facilities where they process coal into coke. The customers for this product are primarily steel manufacturers who rely on a consistent supply of high-quality coke for their production processes. This business line represents a core part of SunCoke's operations, directly supporting the steel industry.
Industrial Services
The Industrial Services segment offers a broad range of support services to various heavy industries, including steel, power, and manufacturing. This includes handling and processing bulk materials like coal and coke, as well as managing scrap metal and slag for steel producers. They also provide logistics services, such as transportation and warehousing, to ensure materials move efficiently. This segment acts as a vital partner, helping other companies manage complex operational and logistical tasks.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$36.10M
FY2025 Q1
$20.90M
FY2025 Q2
$4.90M
FY2025 Q3
$-16.30M
FY2025 Q4
$32.80M
FY2026 Q1
$55.70M
FY2026 Q2
$-43.10M
FY2026 Q3
$73.90M
Revenue
$485.90M
Net income
$21.80M
Diluted EPS
0.25
Operating cash flow
$94.80M
Free cash flow
$73.90M
Fetching…
Sources
Revenue
$475.30M
Net income
$13.10M
Diluted EPS
0.15
Operating cash flow
$-27.20M
Free cash flow
$-43.10M
Fetching…
Sources
Revenue
$455.10M
Net income
$-4.40M
Diluted EPS
-0.05
Operating cash flow
$72.70M
Free cash flow
$55.70M
Fetching…
Sources
Revenue
$480.20M
Net income
$-85.60M
Diluted EPS
-1.00
Operating cash flow
$56.60M
Free cash flow
$32.80M
Fetching…
Sources
Revenue
$487.00M
Net income
$22.20M
Diluted EPS
0.26
Operating cash flow
$9.20M
Free cash flow
$-16.30M
Fetching…
Sources
Revenue
$434.10M
Net income
$1.90M
Diluted EPS
0.02
Operating cash flow
$17.50M
Free cash flow
$4.90M
Fetching…
Sources
Revenue
$436.00M
Net income
$17.30M
Diluted EPS
0.20
Operating cash flow
$25.80M
Free cash flow
$20.90M
Fetching…
Sources
Revenue
$486.00M
Net income
$23.70M
Diluted EPS
0.28
Operating cash flow
$60.90M
Free cash flow
$36.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $34.39 vs current price $9.70
Wall Street consensus is the average analyst price target: $11.50 (-66.6% lower than our fair-value estimate).
Our most-likely fair value is $34.39 a share — about 254.5% above today's price of $9.70, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $550.8M. Interest coverage 1.6x.
Net debt
$550.80M
Interest coverage
1.62x
SunCoke Energy, Inc.'s profit covers its interest bill about 1.6 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
SXC
BASELINE
SunCoke Energy, Inc.
Total debt $608.40M Interest coverage 1.62x This is the baseline the peer rows are being compared against.
Total debt $468.48M Interest coverage -7.17x -100% vs SXC This peer has almost no interest-payment cushion compared with SXC.
Total debt $11.40M Interest coverage -20.33x -100% vs SXC This peer has almost no interest-payment cushion compared with SXC.
Total debt $235.83M Interest coverage 4.69x +190% vs SXC Carries about 2.9x more debt cushion than SXC.
Total debt $47.71M Interest coverage 3.93x +143% vs SXC Carries about 2.4x more debt cushion than SXC.
What you should know
The case for and against SXC
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.2% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 4.6% with 13-year payout history.
Risks
-
Net debt grew 37.0% over 3 years.
-
Insider ownership is only 1.1% (peer median: 9.4%).
-
Return on equity was -7.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
33.45x
P/B
1.38x
P/S
0.43x
EV/EBITDA
5.53x
PEG ratio
1.98x
Profitability
How much profit each dollar creates
Gross margin
19.4%
Operating margin
8.4%
Net margin
-2.9%
ROE
-7.3%
ROA
2.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.97x
Current ratio
2.04x
Quick ratio
1.18x
Total debt
$608.40M
Total cash
$57.60M
Growth
How the business has been compounding
Revenue TTM
$1.90B
Revenue 5Y CAGR
6.0%
EPS TTM
-0.64
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$196.90M
Free CF TTM
$42.30M
FCF margin
2.2%
Dividend
Shareholder payout
Yield
4.6%
Payout ratio
64.0%
Last ex-div date
2026-11-17