SunCoke Energy (NYSE:SXC) trades at a significant discount to its peers despite much lower debt, a superior business model and strong growth prospects.
SXC supplies coke (main input in the blast furnace steelmaking process) to steelmakers, which eliminates the need for captive and capital-intensive coke production facilities. SXC is the largest independent producer in the Americas and supplies ~20% of U.S. and Canadian coke demand.
In 2012, SXC sold ~4.4 million tons of coke (and exceeded 100% capacity utilization) to three customers in the U.S. (ArcelorMittal, AK Steel and U.S. Steel) and ~1.3 million tons of metallurgical coal and 0.2 million tons of thermal coal.
Sunoco (NYSE:SUN) spun-off 19.1% of SXC in July 2011...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|