SunCoke Energy, Inc. (SXC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

SunCoke Energy, Inc. (SXC) Energy Operations & Outlook

SunCoke Energy, Inc. (SXC) is an independent coke producer operating in the Americas and Brazil, providing metallurgical and thermal coal to steel, utility, and manufacturing customers. With a diversified business across domestic coke, Brazil coke, and logistics, SunCoke operates six cokemaking facilities and offers handling services.

What Is the Investment Thesis for SXC?

SunCoke Energy presents a mixed investment thesis. The company's dividend yield of 6.56% may attract income-seeking investors. However, the company's negative profit margin of -3.5% raises concerns about profitability. A beta of 0.86 suggests lower volatility compared to the broader market. Growth catalysts include potential infrastructure projects increasing steel demand and expansion of logistics services. Investors should closely monitor the company's ability to improve profitability and manage operational costs. The company's exposure to the cyclical steel industry and regulatory changes pose potential risks.

Based on FMP financials and quantitative analysis

SXC Key Highlights

• Market capitalization of $709M indicates a mid-sized player in the coke production industry.
• Dividend yield of 6.56% offers an attractive income stream for investors.
• Beta of 0.86 suggests lower volatility compared to the overall market, potentially appealing to risk-averse investors.
• Negative profit margin of -3.5% signals potential challenges in achieving sustained profitability.
• Gross margin of 6.5% reflects the difference between revenue and the cost of goods sold, indicating the company's efficiency in managing production costs.

Who Are SXC's Competitors?

SXC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SXC's Key Strengths?

• Strategic locations of cokemaking facilities.
• Integrated business model with coke production and logistics.
• Long-standing relationships with key customers.
• Expertise in coke production and handling.

What Are SXC's Weaknesses?

• Negative profit margin indicating profitability challenges.
• Exposure to cyclical steel industry.
• Dependence on coke production technology.
• Limited geographic diversification.

What Could Drive SXC Stock Higher?

• Potential infrastructure projects increasing steel demand.
• Expansion of logistics services to new customers.
• Increased coke production in Brazil to meet growing demand.
• Strategic acquisitions to expand geographic footprint.

What Are the Key Risks for SXC?

• Financial-distress signal — its Altman Z-Score of 1.52 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-10.3%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Fluctuations in steel demand affecting coke consumption.
• Increasing environmental regulations impacting coke production.
• Competition from alternative steelmaking technologies.
• Changes in raw material costs affecting profitability.
• Negative profit margin indicating profitability challenges.

What Are the Growth Opportunities for SXC?

• Expansion of Logistics Services: SunCoke Energy can expand its logistics services to capture a larger share of the market for handling and mixing services. This includes targeting new customers in the steel, coke, electric utility, and coal producing industries. The market for logistics services in these sectors is estimated to be worth several billion dollars annually. Timeline: Ongoing.
• Increased Coke Production in Brazil: The company can increase coke production at its facility in Brazil to meet growing demand in the South American market. This includes investing in additional capacity and improving operational efficiency. The South American steel industry is expected to grow in the coming years, driving demand for coke. Timeline: 2-3 years.
• Strategic Acquisitions: SunCoke Energy can pursue strategic acquisitions to expand its geographic footprint and product offerings. This includes acquiring other coke producers or logistics companies. The market for acquisitions in the coke industry is estimated to be worth several hundred million dollars. Timeline: Ongoing.
• Development of New Coke Technologies: The company can invest in the development of new coke technologies to improve efficiency and reduce environmental impact. This includes exploring the use of alternative feedstocks and developing more efficient cokemaking processes. The market for new coke technologies is estimated to be worth several million dollars annually. Timeline: 3-5 years.
• Capitalizing on Infrastructure Development: Increased infrastructure spending in the United States and other countries can drive demand for steel, which in turn will increase demand for coke. SunCoke Energy is well-positioned to benefit from this trend, given its coke production capacity and logistics services. The global infrastructure market is estimated to be worth trillions of dollars. Timeline: Ongoing.

What Opportunities Does SXC Have?

• Expansion of logistics services to new customers.
• Increased coke production in Brazil to meet growing demand.
• Strategic acquisitions to expand geographic footprint.
• Development of new coke technologies for improved efficiency.

What Threats Does SXC Face?

• Fluctuations in steel demand affecting coke consumption.
• Increasing environmental regulations impacting coke production.
• Competition from alternative steelmaking technologies.
• Changes in raw material costs affecting profitability.

What Are SXC's Competitive Advantages?

• Strategic asset locations with cokemaking facilities in key geographic regions.
• Integrated business model encompassing coke production and logistics services.
• Long-term relationships with key customers in the steel industry.
• Specialized expertise in coke production and handling.

What Does SXC Do?

SunCoke Energy, Inc., founded in 1960 and headquartered in Lisle, Illinois, stands as an independent producer of coke, primarily serving the Americas and Brazil. The company's operations are divided into three segments: Domestic Coke, Brazil Coke, and Logistics. The Domestic Coke segment focuses on the production of coke at its five U.S.-based cokemaking facilities, catering to steel manufacturers and other industrial clients. The Brazil Coke segment operates a single cokemaking facility in Brazil, serving the South American market. The Logistics segment provides handling and mixing services for a diverse range of customers, including steel mills, coke producers, electric utilities, and coal producers. SunCoke Energy offers both metallurgical and thermal coal, essential for steel production and power generation. The company's integrated business model, encompassing coke production and logistical support, positions it as a key player in the coke supply chain. With a history spanning over six decades, SunCoke Energy has established itself as a reliable supplier in the coke industry, adapting to changing market dynamics and customer needs.

What Products and Services Does SXC Offer?

• Produces coke for the steel industry.
• Offers metallurgical coal for steel production.
• Provides thermal coal for power generation.
• Operates five cokemaking facilities in the United States.
• Operates one cokemaking facility in Brazil.
• Provides handling and mixing services for various industries.
• Offers logistics services to steel, coke, and utility companies.

How Does SXC Make Money?

• Generates revenue from the sale of coke to steel manufacturers.
• Earns revenue from handling and mixing services provided to various industries.
• Operates cokemaking facilities in the United States and Brazil.
• Provides logistics services to transport and handle materials.

What Industry Does SXC Operate In?

SunCoke Energy operates within the coal industry, specifically focusing on coke production. The industry is influenced by the demand for steel, as coke is a critical input in the steelmaking process. Market trends include increasing environmental regulations and a shift towards more sustainable practices. The competitive landscape includes other coke producers and integrated steel companies. SunCoke Energy differentiates itself through its independent coke production and logistics services. The industry faces challenges from fluctuating steel demand and increasing competition from alternative steelmaking technologies.

Who Are SXC's Key Customers?

• Steel manufacturers who use coke in the steelmaking process.
• Electric utilities that use thermal coal for power generation.
• Coke producers who require handling and mixing services.
• Coal producers who need logistics support for transportation.

Net buyingInsider Activity

Over the past six months, SunCoke Energy, Inc. insiders filed 20 SEC Form 4 transactions — 5 sales and 15 purchases. On net that is roughly 174K shares acquired (about $90K) — insiders putting money in tends to read as conviction.

FY2026 estForward Outlook

Wall Street analysts project SunCoke Energy, Inc. revenue of about $1.80B for fiscal 2026, with EPS near $0.21.

F-Score 2/9Financial Health

SunCoke Energy, Inc.'s Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 1.52 places it in the distress zone, a signal of elevated financial risk.

ROE -10%Key Financial Metrics

Return on equity for SunCoke Energy, Inc. stands at -10.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -3.8%, showing how much profit it generates from its asset base. Its free cash flow yield is 10.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.23 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -9.1%, the inverse of the P/E and a quick read on earnings relative to price.

SunCoke Energy, Inc. (SXC) Valuation Context

Valued at $709M, SXC is classified as a small-cap stock. Relative to its peer group, SXC's quantitative score of 50/100 is roughly in line with the peer average of 56/100.

SXC Financials

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SXC Analyst Consensus

SXC MoonshotScore

SXC Energy Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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