SXC

SunCoke Energy Inc.

Industrial/Transportation


Presented:01/22/2015
Price:$17.54
Cap:$1.16B
Current Price:$8.59
Cap:$0.72B

Presented

Date01/22/2015
Price$17.54
Market Cap$1.16B
Ent Value$1.97B
P/E RatioN/A
Book Value$7.27
Div Yield1.3%
Shares O/S66.22M
Ave Daily Vol460,000
Short Int2.35%

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.

Publicly traded companies mentioned herein: SunCoke Energy Inc. (SXC), US Steel (X), AK Steel (AKS) and ArcelorMittal (MT), SunCoke Energy Partners (SXCP).

Highlights

SunCoke is a coking coal producer that sells primarily into major steel companies US Steel (X), AK Steel (AKS) and ArcelorMittal (MT) under so-called take-or-pay contracts. As such, many investors tend to worry about the credit risk of SunCoke’s main counterparties, but the presenter points out that the plants SXC sells into happen to be the lowest cost plants for each of those producers. The stock has languished over concerns about how steel and coke have been trading, as well as the pace at which SXC has been dropping down assets into its MLP - providing an attractive entry point, according to the presenter. 

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Idea Discussion

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