Core Insights - SunCoke Energy (SXC) is currently attracting investor attention due to its strong value metrics and favorable Zacks Rank of 2 (Buy) [4] - The company has an A grade for Value, indicating it is likely undervalued in the market [8] Valuation Metrics - SXC has a Price-to-Sales (P/S) ratio of 0.45, significantly lower than the industry average of 0.92, suggesting it may be undervalued [2] - The Price-to-Cash Flow (P/CF) ratio for SXC is 4.32, compared to the industry average of 5.06, indicating an attractive valuation based on cash flow [5] - SXC's Price-to-Book (P/B) ratio stands at 1.30, which is also lower than the industry average of 1.42, further supporting the notion of undervaluation [7] Performance Indicators - Over the past 52 weeks, SXC's P/CF has fluctuated between a high of 5.13 and a low of 3.37, with a median of 4.46, reflecting its cash flow performance [5] - The P/B ratio has varied from a high of 1.55 to a low of 0.97, with a median of 1.35, indicating stability in its book value relative to market value [7]

Group 1 - SunCoke Energy (SXC) has shown a year-to-date performance increase of approximately 17.3%, outperforming the average gain of 9.5% in the Oils-Energy sector [4] - The Zacks Rank for SunCoke Energy is currently 2 (Buy), indicating a positive earnings outlook with a consensus estimate for full-year earnings rising by 21.3% in the past quarter [3] - SunCoke Energy is part of the Coal industry, which includes 9 individual stocks and is currently ranked 85 in the Zacks Industry Rank, with an average gain of 10% this year [5] Group 2 - The Oils-Energy sector consists of 240 individual stocks, with the sector currently ranked 13 in the Zacks Sector Rank [2] - Another notable stock in the Oils-Energy sector is YPF Sociedad Anonima (YPF), which has increased by 133.6% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - The Oil and Gas - Integrated - International industry, to which YPF belongs, is ranked 77 and has seen a gain of 7.4% this year [6]

Group 1 - SunCoke Energy, Inc. (SXC) has reached a significant support level and is considered a good investment pick from a technical perspective due to a "golden cross" formation, where the 50-day simple moving average has broken above the 200-day moving average [1] - A successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer moving average, and the stock maintains upward momentum [2] - SXC shares have increased by 26.9% over the past four weeks, and the company holds a 2 (Buy) rating on the Zacks Rank, indicating potential for a breakout [3] Group 2 - There has been one upward revision in earnings estimates for SXC over the past 60 days, with no downward revisions, and the Zacks Consensus Estimate has also increased [4] - The technical indicators suggest that investors should consider adding SXC to their watchlist due to the positive movement in earnings estimates and the significance of the golden cross [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights SunCoke Energy (SXC) as a strong value stock based on its financial metrics and Zacks Rank [2][3][7] Company Analysis - SunCoke Energy (SXC) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is a high-quality value stock [3] - The company has a Price-to-Book (P/B) ratio of 1.53, which is lower than the industry average of 1.74, suggesting it is undervalued [4] - SXC's Price-to-Sales (P/S) ratio is 0.53, significantly below the industry average of 1.04, further indicating potential undervaluation [5] - The Price-to-Cash Flow (P/CF) ratio for SXC is 5.06, which is attractive compared to the industry average of 6.20, reinforcing the notion of undervaluation [6] - Over the past year, SXC's P/B has fluctuated between 0.97 and 1.55, with a median of 1.33, while its P/CF has ranged from 3.37 to 5.13, with a median of 4.40 [4][6] Industry Context - The article discusses the broader value investing strategy, which focuses on identifying companies undervalued by the market using fundamental analysis and traditional valuation metrics [2] - The Style Scores system is mentioned as a tool for investors to find stocks with specific traits, particularly in the value category [3]

Company Overview - SunCoke Energy (SXC) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook for investors [3] Price Performance - Over the past week, SXC shares have increased by 27.7%, outperforming the Zacks Coal industry, which rose by 6.53% [5] - In the last month, SXC's price change is 46.33%, significantly higher than the industry's 5.43% [5] - For the past quarter, SXC shares have risen by 46.16%, and over the last year, they are up 40.6%, while the S&P 500 has moved 12.29% and 37.16%, respectively [6] Trading Volume - SXC's average 20-day trading volume is 890,353 shares, which is a useful indicator of market interest and can signal bullish or bearish trends [7] Earnings Outlook - In the past two months, one earnings estimate for SXC has increased, while none have decreased, raising the consensus estimate from $0.94 to $1.14 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions, indicating positive earnings momentum [9]

Core Viewpoint - The article emphasizes the importance of value investing and highlights SunCoke Energy (SXC) as a strong value stock based on various financial metrics [1][2][6]. Group 1: Investment Metrics - SunCoke Energy has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the highest-quality value stocks available [2]. - The company's Price-to-Book (P/B) ratio is 1.50, which is lower than the industry average of 1.75, suggesting it is relatively undervalued [3]. - SunCoke's Price-to-Sales (P/S) ratio stands at 0.54, significantly below the industry's average of 1.04, further indicating potential undervaluation [4]. - The Price-to-Cash Flow (P/CF) ratio for SXC is 4.97, compared to the industry average of 6.41, reinforcing the notion that the stock may be undervalued based on cash flow strength [5]. Group 2: Overall Assessment - The combination of these metrics suggests that SunCoke Energy is likely undervalued at present, making it an attractive option for value investors [6].

Have you been paying attention to shares of SunCoke Energy (SXC) ? Shares have been on the move with the stock up 44.6% over the past month. The stock hit a new 52-week high of $12.55 in the previous session. SunCoke Energy has gained 16.8% since the start of the year compared to the 6.7% move for the Zacks Oils-Energy sector and the 14.5% return for the Zacks Coal industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consens ...

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q3 2024 was $75.3 million, an increase from $65.4 million in the prior year period, primarily driven by a one-time gain of $9.5 million from the elimination of legacy black lung liabilities [8][15] - Net income attributable to SunCoke was $0.36 per share, up $0.28 compared to the prior year, mainly due to the aforementioned gain [13] - The company ended the quarter with a leverage ratio of 1.86 times on a trailing 12 months adjusted EBITDA basis [8] Business Line Data and Key Metrics Changes - Domestic Coke adjusted EBITDA for Q3 2024 was $58.1 million, with coke sales volumes at 1,027 tons; however, this was a decrease compared to the prior year due to lower coal-to-coke yields [16] - The Logistics business generated $13.7 million of adjusted EBITDA in Q3 2024, up from $8.4 million in Q3 2023, driven by higher transloading volumes and API2 price adjustments [18] - The company revised its full year domestic coke adjusted EBITDA guidance to $230 million to $235 million from a previous range of $238 million to $245 million [17] Market Data and Key Metrics Changes - Domestic terminals handled 3.8 million tons in Q3 2024, compared to 2.9 million tons in the same prior year period, indicating growth driven by new business [20] - Total logistics volume guidance for the full year was increased to approximately 22 million tons, with CMT handling about 8 million tons and domestic terminals about 14 million tons [20] Company Strategy and Development Direction - The company is focused on maintaining strong safety and environmental performance, which is central to its operations [23] - SunCoke is pursuing future opportunities to broaden its customer base in both domestic coke and logistics segments, with the GPI project remaining a top priority [25] - The company is taking a balanced approach to capital allocation, having strengthened its balance sheet by extinguishing the majority of legacy black lung liabilities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the GPI project despite delays due to government inaction, viewing the Granite City contract extension as a bridge during this period [30][31] - The company is dedicated to executing its operating and capital plans for full utilization of cokemaking assets while also evaluating capital needs and shareholder rewards [27] Other Important Information - The company ended Q3 with a cash balance of $164.7 million and a fully undrawn revolver of $350 million, indicating a strong liquidity position of $514.7 million [21] - A $12 million expansion project at the KRT Logistics facility will increase barge unloading capacity from 2 million tons to 5 million tons, expected to be completed by Q2 2025 [12] Q&A Session Summary Question: Where is the material from the Granite City supply agreement going? - The coke is being sold to U.S. Steel [29] Question: Is the Granite City contract extension related to the GPI project? - Yes, the extension is part of the GPI project and serves as a bridge during the delay in government approvals [30][31] Question: Can you expand on future opportunities related to the $12 million capital investment? - The investment will expand barge-to-rail unloading capacity, allowing for greater volume of business, with ongoing efforts to seek new business at logistics terminals and coke plants [32]

Financial Performance - Net income for Q3 2024 was $33.3 million, a significant increase of 292% compared to $8.5 million in Q3 2023[72] - Adjusted EBITDA for Q3 2024 was $75.3 million, up 15.1% from $65.4 million in Q3 2023[72] - Revenues for Q3 2024 decreased to $490.1 million, down 5.8% from $520.4 million in Q3 2023[76] - Domestic Coke sales for the three months ended September 30, 2024, were $459.9 million, a decrease of $35.8 million (7.2%) compared to $495.7 million in the prior year[82] - Adjusted EBITDA for Domestic Coke in the same period was $58.1 million, down $5.9 million (9.2%) from $64.0 million in the prior year[82] - Total sales and other operating revenues for the company were $490.1 million for the three months ended September 30, 2024, a decrease of $30.3 million (5.8%) from $520.4 million in the prior year[82] - Operating income for Q3 2024 was $47.2 million, up from $29.7 million in Q3 2023, reflecting a growth of 58.5%[8] - Basic earnings per share for Q3 2024 were $0.36, compared to $0.08 in Q3 2023, marking a 350% increase[8] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased by $84.7 million to $107.9 million for the nine months ended September 30, 2024, compared to $192.6 million in the prior year[94] - Net cash used in investing activities decreased by $37.8 million to $47.6 million for the nine months ended September 30, 2024, primarily due to the absence of capital spending on specific projects[95] - Net cash used in financing activities decreased by $35.6 million to $35.7 million for the nine months ended September 30, 2024, driven by lower net repayments on the Revolving Facility[96] - Total capital expenditures for the nine months ended September 30, 2024, were $48.1 million, down from $84.5 million in the prior year[100] - Ongoing capital expenditures were $44.1 million for the nine months ended September 30, 2024, compared to $73.2 million in the prior year[100] - Future capital expenditures are projected to be around $50 million, aimed at upgrading existing facilities[6] Debt and Compliance - The company was in compliance with all applicable debt covenants as of September 30, 2024, and does not anticipate any violations[97] - Total debt as of September 30, 2024, was $491.8 million, slightly up from $490.3 million as of December 31, 2023[31] - The Company had $350.0 million available under its revolving credit facility as of September 30, 2024, with no outstanding balance[32] Operational Highlights - Domestic coke plants operated at full capacity during the nine months ended September 30, 2024, with long-term agreements insulating them from global price fluctuations[70] - The logistics segment saw higher transloading volumes and pricing, contributing to improved financial performance[72] - The company operates five cokemaking facilities in the U.S. with a total capacity of approximately 4.2 million tons per year[69] - Tons handled in the Logistics segment increased to 5,843 thousand tons for the three months ended September 30, 2024, up 882 thousand tons (17.7%) from 4,961 thousand tons in the prior year[82] Black Lung Liabilities - The company recognized a $9.5 million pre-tax gain from extinguishing certain black lung liabilities, reducing the liability by $45.5 million[74] - As of September 30, 2024, the total black lung liability, discounted, is $14.4 million, down from $58.2 million as of December 31, 2023, reflecting a reduction of $45.5 million due to a regulatory exemption agreement[36] - The company made a lump sum payment of $36.0 million to satisfy its self-insured federal black lung liabilities on August 13, 2024[91] Market and Strategic Initiatives - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next quarter[7] - New product launches are expected to contribute an additional $30 million in revenue over the next fiscal year[6] - The company is expanding its market presence in Asia, targeting a 25% increase in market share by the end of the year[7] - A strategic acquisition of a logistics firm was completed, expected to enhance operational efficiency and reduce costs by 15%[6] Shareholder Returns - The company declared a cash dividend of $0.12 per share on July 31, 2024, and another on October 31, 2024, to be paid on December 2, 2024[97] - Dividends paid in Q3 2024 amounted to $27.5 million, an increase from $22.3 million in Q3 2023[15] Other Financial Metrics - Total assets as of September 30, 2024, were $1,654.8 million, slightly down from $1,660.4 million at the end of 2023[13] - Cash and cash equivalents increased to $164.7 million from $140.1 million at the end of 2023, showing a growth of 17.5%[13] - Total liabilities decreased to $963.8 million from $1,014.9 million at the end of 2023, a reduction of 5.0%[13] - The effective tax rate for the three months ended September 30, 2024, was 19.8%, significantly lower than 63.2% for the same period in 2023[28]

SunCoke Energy (SXC) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 56.52%. A quarter ago, it was expected that this metallurgical coke producer would post earnings of $0.22 per share when it actually produced earnings of $0.25, delivering a surprise of 13.64%.Over the last four quar ...