TThe following are today’s upgrades to Validea’s Book/Market Investor model, based on Joseph Piotroski’s published strategy. This value quant strategy looks for stocks with a high book-to-market value and then singles out financially healthy companies by looking at a variety of improving financial criteria.
SUNCOKE ENERGY INC. (SXC) is a small-cap growth stock in the conglomerate industry. The rating according to our Joseph Piotroski-based strategy changed from 0% to 80% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or greater typically indicates that the strategy has some interest in the stock, and a score above 90% typically indicates strong interest.
Company description: SunCoke Energy, Inc. is a producer of coke in America. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of Jewell Coke Company, LP (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC ( Middletown) coke making and heat recovery. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operates a coking plant, ArcelorMittal Brasil SA. The Coal Logistics segment consists of Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT) and SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or blending service operations. The Company designs, develops, builds, owns and operates five coking plants in the United States (as of December 31, 2016).
The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
|RETURN ON ASSETS:||HAPPEN|
|CHANGE IN RETURN ON INVESTMENTS:||HAPPEN|
|CASH FLOW FROM OPERATIONS:||HAPPEN|
|CASH VERSUS NET INCOME:||HAPPEN|
|CHANGE IN NON-CURRENT LIABILITIES/ASSETS||HAPPEN|
|CHANGE OF CURRENT RATIO:||FAIL|
|CHANGE IN SHAREHOLDINGS OUTSTANDING:||HAPPEN|
|CHANGE IN GROSS MARGIN:||HAPPEN|
|CHANGE IN ASSETS TURNOVER:||FAIL|
Detailed analysis of SUNCOKE ENERGY INC
Full guru analysis for SXC
Full factor report for SXC
More details on Validea’s Joseph Piotroski strategy
About Joseph Piotroski: Piotroski is not your typical Wall Street candy. In fact, he’s not even a professional investor. He’s a good ol’ accountant and college professor crunching numbers. But in 2000, shortly after he began teaching at the University of Chicago’s Graduate School of Business, Piotroski published a seminal paper in the Journal of Accounting Research entitled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from losers”. In it, Piotroski laid out an accounting stock-picking/short-selling methodology that produced an average annual backtested return of 23 percent from 1976 through 1996 — more than double the S&P 500’s return during that time. Piotroski’s findings have been published in major financial publications such as SmartMoney. He now teaches accounting at Stanford University’s Graduate School of Business.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over time, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. You can find more information about Validea here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.