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Are Investors Undervaluing SunCoke Energy (SXC) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is SunCoke Energy (SXC - Free Report) . SXC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.13, while its industry has an average P/E of 13.55. SXC's Forward P/E has been as high as 19.21 and as low as 9.29, with a median of 13.40, all within the past year.

Investors should also recognize that SXC has a P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.48. SXC's P/B has been as high as 1.55 and as low as 0.87, with a median of 1.06, over the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SXC has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.17.

Finally, investors will want to recognize that SXC has a P/CF ratio of 3.61. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SXC's P/CF compares to its industry's average P/CF of 9.54. Within the past 12 months, SXC's P/CF has been as high as 5.13 and as low as 3.20, with a median of 3.70.

These are just a handful of the figures considered in SunCoke Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SXC is an impressive value stock right now.

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