SunCoke Energy Partners Fuels Steelmakers

Basic materials sector includes thirteen industries all tied to the mining or manufacturing of basic commodities. The Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today I'm reviewing a coal company named SunCoke Energy Partners, L.P. It's trading ticker symbol is SXCP.

SunCoke Energy Partners, L.P. operates as a coal processing and logistic company for customers engaged in the steel and energy industry.

SunCoke Energy Partners GP LLC serves as the general partner of the company. The company was founded in 2012 and is headquartered in Lisle, Illinois. SunCoke Energy Partners, L.P. operates as a subsidiary of Sun Coal & Coke LLC.

I use three primary keys to measure dividend equities or funds like SunCoke Energy Partners, L.P. : 

(1) Price

(2) Dividends

(3) Returns

Besides those three main keys, I'll use four more to finally unlock an equity or fund in which to invest.

These first three keys best test whether the company has made, is making, and will continue to make money.

SXCP Price

SunCoke Energy Partners, L.P.'s price at Friday's market close was $19.80 per share. The company shows positive price momentum. Just a year ago its price was $18.05. So it's a gained  $1.75 per share in the past year. Can SXCP do as well in the coming year? If it does, its price will increase from $19.80 to $21.55 per share or about 9 %.

SXCP  Dividends

SunCoke Energy Partners, L.P.'s most recent quarterly dividend was $0.594 declared in October 2017 and paid December first.  

The company has paid an increasing quarterly dividend since May 2013.

The consensus forward-looking annual dividend for 2018 is $2.38 payable quarterly at $0.594.

The yield from a $2.38 dividend at Friday's $19.80 price is 12%.

Are Gains Ahead For SXCP?

Adding the $2.38 dividend to the $1.75 estimated price gain (to repeat last year's) shows a potential $4.13 gross gain.  

But there are costs for the SunCoke Energy shares. A  $1,000.00 budget for shares at Friday's $19.80 closing price would let us purchase 51 shares. 

Those 51 shares will be hit with a broker fee of $5 at purchase and another $5 at sale (for a total of $10 to get the gains). Each share then has a brokerage cost of about $0.1961

Subtracting that $0.1961 brokerage cost from the estimated $4.13 gross gain shows a net gain to 2019 of $3.9339

X 51 shares 

= $200.63

or about a 20% net gain on our $1,009.80 investment.

Therefore, SunCoke Energy Partners, L.P. (whose ticker symbol is SXCP), shows a possible 20% gain by my simple year over year calculation with a 12% dividend baked in.

Three analysts cover this stock and two say it's a hold and one says its a buy. Their median one-year stock price target is $21.33 or $0.22 less than my year over year estimate.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to move lower. More study is required for you to determine if SunCoke Energy Partners, L.P.  is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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