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Is SunCoke Energy (SXC) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is SunCoke Energy (SXC - Free Report) . SXC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.13. This compares to its industry's average Forward P/E of 13.97. Over the past year, SXC's Forward P/E has been as high as 19.21 and as low as 9.29, with a median of 13.40.

Another notable valuation metric for SXC is its 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 stock's P/B looks attractive against its industry's average P/B of 1.71. Over the past 12 months, SXC's P/B has been as high as 1.55 and as low as 0.87, with a median of 1.06.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SXC has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.1.

Finally, our model also underscores 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 10.21. SXC's P/CF has been as high as 5.13 and as low as 3.20, with a median of 3.70, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that SunCoke Energy is likely undervalued currently. And when considering the strength of its earnings outlook, SXC sticks out as one of the market's strongest value stocks.

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