Is SunCoke Energy, Inc. overvalued or undervalued?

As of 9 May 2025, the valuation grade for SunCoke Energy, Inc. has moved from fair to attractive, indicating a shift in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a P/E ratio of 8, an EV to EBITDA of 4.28, and a PEG ratio of 0.16, all of which are significantly lower than industry averages, suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to peers, SunCoke Energy's P/E ratio of 8.15 is more favorable than Natural Resource Partners LP's P/E of 7.55, while Hallador Energy Co. presents a risky valuation with a P/E of 128.77. Additionally, the company's impressive dividend yield of 487.63% and ROCE of 14.96% further reinforce its attractiveness. Despite recent underperformance compared to the S&P 500, with a year-to-date return of -24.49% versus the index's 2.44%, the overall valuation metrics suggest that SunCoke Energy is positioned for potential upside.