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Suncoke Energy (SXC)
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Suncoke Energy (SXC) AI Stock Analysis

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SXC

Suncoke Energy

(NYSE:SXC)

Rating:68Neutral
Price Target:
$8.50
▲(10.10% Upside)
Suncoke Energy's overall score reflects a stable financial position with strong cash flow and manageable debt. The stock is undervalued with a high dividend yield, but technical indicators suggest bearish momentum. Strategic acquisitions and strong liquidity are positive, but declining income and sales pose challenges.
Positive Factors
Acquisition and Diversification
SunCoke Energy announced it has entered into an agreement to acquire Phoenix Global, a provider of services to major steel companies, which will allow for business diversification.
Financial Stability
Phoenix Global's long-term contracts with limited commodity price exposure align well with SunCoke Energy's business model, reducing financial risk.
Operational Guidance
Management reaffirmed all prior full-year operational guidance ranges, indicating confidence in meeting future targets.
Negative Factors
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 in the back half of the year.
Earnings Performance
The company reported a 2Q adjusted EBITDA of $44M, missing the consensus and internal estimates, which negatively impacts investor perception.
Market Uncertainties
Management acknowledged that spending is likely to come in lower than initially forecasted due to market uncertainties.

Suncoke Energy (SXC) vs. SPDR S&P 500 ETF (SPY)

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 generates revenue primarily through the production and sale of metallurgical coke, which is sold to steel manufacturers under long-term contracts. The company also earns from its Coal Logistics segment, which involves managing the transportation and handling of coal for its customers. Key revenue streams include fixed-price contracts with major steel producers, fee-based coal handling agreements, and ancillary services related to coal logistics. Additionally, SunCoke's partnerships with large steel mills and its strategic locations near major steel production hubs contribute to its earnings stability and growth potential.

Suncoke Energy Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the strategic acquisition of Phoenix Global, the strong liquidity position, and the reaffirmation of guidance, indicating a focus on long-term growth and stability. However, significant challenges were noted, including declines in net income and EBITDA, lower domestic coke sales, and performance issues in the Logistics segment.
Q2-2025 Updates
Positive Updates
Phoenix Global Acquisition
SunCoke Energy announced the acquisition of Phoenix Global for $325 million, expected to close on August 1. The acquisition is expected to be immediately accretive with an acquisition multiple of approximately 5.4x on a trailing 12-month adjusted EBITDA of $61 million. Expected annual synergies are estimated between $5 million and $10 million.
Strong Liquidity Position
SunCoke ended Q2 with a strong liquidity position of $536.2 million, including a cash balance of $186.2 million and a fully undrawn revolver of $350 million.
Reaffirmed Guidance
SunCoke reaffirmed its full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million and Domestic Coke adjusted EBITDA guidance range of $185 million to $192 million.
Revolving Credit Extension
The revolving credit facility was amended and extended, now maturing in July 2030, maintaining similar covenants to the previous agreement.
Negative Updates
Decline in Net Income and EBITDA
Net income attributable to SunCoke was $0.02 per share in Q2 2025, down $0.23 from the prior year. Consolidated adjusted EBITDA was $43.6 million, down from $63.5 million in the prior year period.
Lower Domestic Coke Sales and Margins
Second quarter domestic coke adjusted EBITDA was impacted by lower contract coke sales and unfavorable economics on the Granite City contract extension. Spot coke sales margins were significantly lower than contract coke sales margins due to challenging market conditions.
Logistics Segment Challenges
The Logistics business generated $7.7 million of adjusted EBITDA, with a decrease primarily driven by lower transloading volumes at CMT due to tepid market conditions.
Transaction Costs Impact
Transaction costs of $5.2 million related to the acquisition of Phoenix Global impacted earnings per share.
Company Guidance
During the SunCoke Energy Second Quarter 2025 Earnings Conference Call, key guidance metrics were discussed, including a reaffirmation of the full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million. The acquisition of Phoenix Global for $325 million was highlighted as a strategic move expected to be immediately accretive, with anticipated annual synergies of $5 million to $10 million. The company ended the quarter with a robust liquidity position of $536.2 million, supported by a cash balance of $186.2 million. SunCoke also announced an amendment and extension of their revolving credit facility to July 2030. The Domestic Coke segment is expected to attain adjusted EBITDA of $185 million to $192 million, while the Logistics segment's guidance remains at $45 million to $50 million. Despite lower contract coke sales, SunCoke plans to normalize its sales mix in the second half of the year, with expected coke sales volumes between 2 million and 2.1 million tons. The company is actively pursuing contract renewals and expects improvements in Logistics and Domestic Coke operations in the latter half of 2025.

Suncoke Energy Financial Statement Overview

Summary
Suncoke Energy demonstrates a stable financial position with strengths in cash flow generation and a manageable debt level. However, declining revenue growth and slight pressure on profit margins indicate potential challenges in sustaining growth. The company maintains a balanced capital structure, but improving asset utilization could enhance financial performance further.
Income Statement
65
Positive
Suncoke Energy's income statement shows moderate performance with a declining revenue growth rate of -1.95% TTM, indicating potential challenges in maintaining sales momentum. The gross profit margin of 16.1% and net profit margin of 4.0% TTM reflect stable profitability, though both have slightly decreased compared to previous periods. The EBIT and EBITDA margins are also stable but show a slight decline, suggesting some pressure on operational efficiency.
Balance Sheet
70
Positive
The balance sheet reveals a solid equity position with a debt-to-equity ratio of 0.73 TTM, indicating manageable leverage. Return on equity stands at 10.9% TTM, reflecting decent profitability relative to shareholder equity. The equity ratio of 41.3% TTM suggests a balanced capital structure, though there is room for improvement in asset utilization.
Cash Flow
75
Positive
Cash flow analysis shows strong performance with a free cash flow growth rate of 25.9% TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio of 1.14 TTM suggests efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.73 TTM further underscores the company's ability to generate cash relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.85B1.94B2.06B1.97B1.46B1.33B
Gross Profit297.30M332.00M338.60M367.60M337.20M284.80M
EBITDA237.00M270.80M267.90M296.20M243.50M210.20M
Net Income73.60M95.90M57.50M100.70M43.40M8.80M
Balance Sheet
Total Assets1.64B1.67B1.66B1.65B1.62B1.61B
Cash, Cash Equivalents and Short-Term Investments186.20M189.60M140.10M90.00M63.80M48.40M
Total Debt496.10M503.50M490.30M532.20M613.60M676.90M
Total Liabilities934.40M957.20M1.01B1.03B1.08B1.11B
Stockholders Equity677.70M680.20M614.20M585.60M498.10M469.00M
Cash Flow
Free Cash Flow154.00M95.90M139.80M133.40M134.50M83.90M
Operating Cash Flow211.40M168.80M249.00M208.90M233.10M157.80M
Investing Cash Flow-56.10M-72.30M-109.20M-70.20M-99.30M-75.30M
Financing Cash Flow-51.00M-47.00M-89.70M-112.50M-118.40M-131.20M

Suncoke Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.72
Price Trends
50DMA
7.93
Negative
100DMA
8.24
Negative
200DMA
9.12
Negative
Market Momentum
MACD
-0.10
Negative
RSI
51.28
Neutral
STOCH
62.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXC, the sentiment is Positive. The current price of 7.72 is above the 20-day moving average (MA) of 7.53, below the 50-day MA of 7.93, and below the 200-day MA of 9.12, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.36B9.7328.59%4.07%-20.92%-26.59%
68
Neutral
$653.62M8.9611.20%6.22%-7.70%17.73%
66
Neutral
$2.12B17.003.87%1.72%-5.83%-73.88%
66
Neutral
$3.21B79.431.95%0.52%-27.62%-90.48%
61
Neutral
$10.26B6.130.71%2.93%3.45%-36.02%
57
Neutral
$1.95B64.14-2.29%0.36%-29.63%-108.26%
52
Neutral
$701.50M-89.44%-14.68%-3155.06%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SXC
Suncoke Energy
7.72
-0.28
-3.50%
HNRG
Hallador Energy Company
16.31
9.84
152.09%
NRP
Natural Resource PRN
103.56
18.71
22.05%
AMR
Alpha Metallurgical Resources
149.19
-68.63
-31.51%
HCC
Warrior Met Coal
61.14
5.05
9.00%
BTU
Peabody Energy Comm
17.40
-4.36
-20.04%

Suncoke Energy Corporate Events

M&A TransactionsBusiness Operations and Strategy
SunCoke Energy Completes Acquisition of Phoenix Global
Positive
Aug 4, 2025

On August 1, 2025, SunCoke Energy completed its acquisition of Phoenix Global, a provider of mill services to steel producers, for $325 million. This acquisition, funded through cash and credit facilities, expands SunCoke’s operations to include electric arc furnace capabilities and international markets, enhancing its growth potential and shareholder value.

M&A TransactionsFinancial Disclosures
SunCoke Energy Reports Q2 Decline, Acquires Phoenix Global
Negative
Jul 30, 2025

On July 30, 2025, SunCoke Energy reported a significant decline in its second quarter financial results compared to the previous year, with net income dropping to $3.5 million from $23.3 million. The company attributed this decrease to the timing and mix of contract and spot coke sales and lower volumes in its Domestic Coke and Logistics segments. Despite these challenges, SunCoke announced the acquisition of Phoenix Global for $325 million, expected to close on August 1, 2025, which is anticipated to enhance its market position by diversifying its customer base and capabilities.

Private Placements and FinancingBusiness Operations and Strategy
SunCoke Energy Amends Revolving Credit Facility
Neutral
Jul 29, 2025

On July 25, 2025, SunCoke Energy, Inc. amended its revolving credit facility with Bank of America, extending its maturity to July 2030 and reducing commitments to $325 million. This amendment, secured by liens on the company’s assets, imposes restrictions on incurring debt, paying dividends, and other financial activities, impacting the company’s operational flexibility and financial strategy.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 30, 2025