SunCoke Energy, Inc. (SXC) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

Show Full description

1.b. Last Insights on SXC

SunCoke Energy's recent performance was negatively impacted by unfavorable contract and spot coke sales mix in its Domestic Coke segment. The company's third quarter 2025 results revealed a decline in earnings to $0.26 per share, compared to $0.36 per share a year ago. Despite beating revenue estimates, the company's Industrial Services segment, which includes the recently acquired Phoenix Global, faced operational challenges. Additionally, the company's reliance on metallurgical coal, despite industry challenges, may pose risks to its future performance.

1.c. Company Highlights

Last Price	6.8
Change Percentage	0.59%
Open	6.72
Previous Close	6.76
Market Cap ( Millions)	576
Volume	839332
Year High	12.62
Year Low	6.24
M A 50	7.51
M A 200	8.24

FCF Yield	7.92%
Dividend Yield	7.06%
ROE	9.51%
Debt / Equity	99.97%
Net Debt / EBIDTA	291.75%
Price To Book	0.84
Price Earnings Ratio	8.93
Price To FCF	12.63
Price To sales	0.31
EV / EBITDA	5.65

2. SunCoke Energy's Q3 2025 Earnings: A Mixed Bag

SunCoke Energy reported a net income attributable to the company of $0.26 per share in Q3 2025, beating estimates of $0.14. The company's consolidated adjusted EBITDA was $59.1 million, down from $75.3 million in the prior year period. The decrease was primarily driven by the mix of contract and spot coke sales coupled with lower economics from the Granite City contract extension in the Domestic Coke segment. Revenue growth was not explicitly stated, but analysts estimate next year's revenue growth at 5.4%. The company's actual EPS was significantly higher than estimates, indicating a positive surprise.

Publication Date: Nov -25

                                    📋 Highlights
                                    Q3 Adjusted EBITDA:
                                                $59.1 million, up sequentially from Q2 2025.
Phoenix Acquisition Impact:
                                                Added 5 months of results, boosting 2025 EBITDA guidance to $220–225 million.
Domestic Coke Deferral:
                                                200,000 tons delayed due to customer breach, reducing EBITDA guidance to $172–176 million.
Segment Performance:
                                                Industrial Services generated $18.2 million in adjusted EBITDA (Q3 2025).
Liquidity:
                                                $206 million in liquidity ($80.4M cash + $126M revolver) post-PHOX acquisition.

                                

Segment Performance

The Domestic Coke segment saw a decline in adjusted EBITDA due to the aforementioned factors. The Industrial Services segment, which includes the logistics business and the newly acquired Phoenix Global business, generated $18.2 million of adjusted EBITDA in Q3 2025. The Phoenix Global business, acquired on August 1, contributed to the segment's results, with management estimating its annual EBITDA contribution to be around $60 million.

Guidance and Outlook

SunCoke revised its consolidated adjusted EBITDA guidance range to between $220 million and $225 million, inclusive of the addition of 5 months of Phoenix results. The company also updated its Domestic Coke adjusted EBITDA guidance to between $172 million and $176 million. Management is optimistic about 2026, citing a full year of Phoenix results, a modest recovery in logistics, and a strong foundation in Middletown and Indiana Harbor. The company's EV/EBITDA ratio is 5.44, and its ROE is 9.51%, indicating a relatively stable valuation.

Valuation and Liquidity

SunCoke ended Q3 2025 with a cash balance of $80.4 million and revolver availability of $126 million, representing ample liquidity of $206 million post-acquisition. The company's P/E ratio is 8.26, and its dividend yield is 7.63%. The company's net debt to EBITDA ratio is 2.92, indicating a manageable debt burden. With a P/S ratio of 0.29, the company's valuation appears reasonable, considering its expected revenue growth.

Operational Highlights

Management is exploring options to sell into the spot market or to others in North America, the seaborne market, or elsewhere, to optimize its coke production. The company is also in discussions with U.S. Steel about extending the Granite City contract and with Cliffs about extending the Haverhill contract. As Katherine Gates noted, "We're committed to maximizing value for all of our stakeholders, which means operating and investing in our assets in the best and most efficient way possible."

3. NewsRoom

68 Graham Value All-Star (GVAS) November Dividend Dogs Show 27 'Safer' And 17 Ideal Buys

Dec -02

Source: seekingalpha.com

SunCoke Energy, Inc. Announces Haverhill Cokemaking Agreement

Nov -18

Source: businesswire.com

SunCoke Energy, Inc. (SXC) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

SunCoke Energy (SXC) Tops Q3 Earnings and Revenue Estimates

Nov -04

Source: zacks.com

SunCoke Energy, Inc. Reports Third Quarter 2025 Results

Nov -04

Source: businesswire.com

SunCoke Energy, Inc. Announces Third Quarter 2025 Earnings Date

Oct -28

Source: businesswire.com

2 Coal Stocks Worth Watching as the Industry Battles Challenges

Oct -13

Source: zacks.com

SunCoke Energy, Inc. Completes Phoenix Global Acquisition

Aug -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Domestic Coke

Expected Growth: 4.83%

SunCoke Energy's Domestic Coke segment growth of 4.83% is driven by increasing demand from steel manufacturers, favorable pricing, and operational efficiencies. Additionally, the company's strategic investments in logistics and transportation infrastructure have improved supply chain reliability, further supporting growth.

Logistics

Expected Growth: 4.83%

SunCoke Energy's Logistics segment growth of 4.83% is driven by increased demand for coal transportation services, strategic partnerships with major coal producers, and investments in infrastructure expansion, enabling efficient and cost-effective transportation of coal to domestic and international markets.

Brazil Coke

Expected Growth: 4.83%

Brazil Coke's 4.83% growth is driven by increasing demand from the steel industry, government investments in infrastructure, and rising exports. Additionally, SunCoke Energy's cost savings initiatives and operational efficiencies have contributed to the growth. Furthermore, the company's strategic partnerships and expansion into new markets have also boosted revenue.

7. Detailed Products

Metallurgical Coke

A type of coke used in blast furnaces to produce iron and steel

Thermal Coal

A type of coal used to generate electricity

Logistics and Handling Services

Services provided to manage and transport coal and coke products

Coal Mining

The process of extracting coal from the earth

8. SunCoke Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SunCoke Energy, Inc. is medium due to the availability of alternative energy sources such as natural gas and renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for SunCoke Energy, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SunCoke Energy, Inc. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for SunCoke Energy, Inc. is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for SunCoke Energy, Inc. is high due to the competitive nature of the industry, with several major players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	44.51%
Debt Cost	8.58%
Equity Weight	55.49%
Equity Cost	9.77%
WACC	9.24%
Leverage	80.20%

11. Quality Control: SunCoke Energy, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Natural Resource Partners

A-Score: 6.8/10

Value: 4.2

Growth: 5.6

Quality: 7.7

Yield: 9.0

Momentum: 6.5

Volatility: 8.0

1-Year Total Return ->

SunCoke Energy

A-Score: 6.3/10

Value: 8.7

Growth: 5.0

Quality: 4.8

Yield: 9.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

NACCO

A-Score: 6.2/10

Value: 7.9

Growth: 3.3

Quality: 6.3

Yield: 5.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

Dorian LPG

A-Score: 5.7/10

Value: 5.2

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

Ramaco Resources

A-Score: 5.3/10

Value: 5.4

Growth: 7.2

Quality: 3.2

Yield: 5.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Hallador Energy

A-Score: 3.8/10

Value: 5.5

Growth: 1.4

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.41%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.24%

SunCoke Energy, Inc. - US86722A1034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SXC

1.c. Company Highlights

Stable Momentum

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Fairly Valued

Average Growth

Higher Yield

Medium Volatility

Earnings Miss

Cheaper

2. SunCoke Energy's Q3 2025 Earnings: A Mixed Bag

Segment Performance

Guidance and Outlook

Valuation and Liquidity

Operational Highlights

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Domestic Coke

Expected Growth: 4.83%

Logistics

Expected Growth: 4.83%

Brazil Coke

Expected Growth: 4.83%

7. Detailed Products

Metallurgical Coke

Thermal Coal

Logistics and Handling Services

Coal Mining

8. SunCoke Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: SunCoke Energy, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.8$

Current Price

6.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA