SunCoke Story

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SXC -- USA Stock  

USD 3.61  0.14  4.03%

SunCoke Energy is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of November 2020. SunCoke Energy Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 1.37 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 1 M, whereas Net Income Per Employee is forecasted to decline to (133.5 K). As many of us are excited about basic materials space, it is fair to go over SunCoke Energy as a unique alternative.
Published over a month ago
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How much will SunCoke Energy owe in September?
The company has 927.8 M in debt with debt to equity (D/E) ratio of 1.81, which is OK given its current industry classification. SunCoke Energy has a current ratio of 2.62, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
SunCoke Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of SunCoke Energy, including all of SunCoke Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of SunCoke Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall SunCoke Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding SunCoke Total Debt

SunCoke Energy liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. SunCoke Energy has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on SunCoke Energy balance sheet include debt obligations and money owed to different SunCoke Energy vendors, workers, and loan providers. Below is the chart of SunCoke main long-term debt accounts currently reported on its balance sheet.
You can use SunCoke Energy financial leverage analysis tool to get a better grip on understanding its financial position

How important is SunCoke Energy's Liquidity

SunCoke Energy financial leverage refers to using borrowed capital as a funding source to finance SunCoke Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SunCoke Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between SunCoke Energy's total debt and its cash.

Acquisition by Allison Lausas of 14528 shares of SunCoke Energy subject to Rule 16b-3

Legal trades by SunCoke Energy insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
SunCoke insider trading alert for grant of rsu's (02.19.2020) by Allison Lausas, Vice President & Controller, on 23rd of August 2020. This event was filed by Suncoke Energy Inc with SEC on 2020-02-21. Statement of changes in beneficial ownership - SEC Form 4. Allison Lausas currently serves as vice president, controller, treasurer of SunCoke Energy [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at SunCoke

The current build-up in SunCoke Energy short term price appreciation created some momentum for investors as it was traded today as low as 3.1 and as high as 3.22 per share. The company executives have successfully maneuvered the company at convenient times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.16. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the SunCoke Energy partners.

Asset Breakdown

1.6 B
Assets Non Current
Goodwill
368.7 M
Current Assets
Total Assets1.77 Billion
Current Assets368.7 Million
Assets Non Current1.56 Billion
Goodwill248.49 Million
Tax Assets4.93 Million

SunCoke Energy is likely finish below $3.25 in 30 days

Current coefficient of variation is at 3408.66. SunCoke Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize SunCoke Energy independently to ensure intended market timing strategies are aligned with expectations about SunCoke Energy volatility.

The Current Takeaway on SunCoke Energy Investment

Whereas few other entities in the coking coal industry are either recovering or due for a correction, SunCoke Energy may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 3rd of August 2020, we believe that SunCoke Energy is currently undervalued with close to average probability of bankruptcy in the next two years. However, our current 30 days buy-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of SunCoke Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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