SXC

SunCoke Energy Inc.

Industrial/Transportation


Presented:04/04/2013
Price:$15.53
Cap:$1.09B
Current Price:$8.59
Cap:$0.72B

Presented

Date04/04/2013
Price$15.53
Market Cap$1.09B
Ent Value$1.61B
P/E RatioN/A
Book Value$6.51
Div Yield1.3%
Shares O/S69.97M
Ave Daily Vol480,000
Short Int3.32%

Current

Price$8.59
Market Cap$0.72B
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas. The company offers metallurgical and thermal coal for use as a raw material in the blast furnace steelmaking process. It also provides coal handling and blending services. The company was incorporated in 2010 and is headquartered in Lisle, Illinois

Highlights

SXC was spun-off from Sunoco (SUN) last year and is the cheapest GP in the MLP space. The presenter attributes its attractive valuation to a lack of investor appreciation for the potential accretion of acquisitions and drop downs in 2014, and a lack of recognition by the MLP community because there is no payout track record yet. He believes there is material upside for patient investors, with dividend income exceeding 7%-8%, and capital gains in excess of 50% over the next 12-18 months as the company simplifies its business structure.

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Idea Discussion

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