2 models fit SunCoke Energy Inc. Common Stock and they agree: 2 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Silver66
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, and Discounted cash flow.
ACCE opinionSunCoke Energy Inc. Common Stock (SXC)
Fair value (2 models)
$13.74
ACCE price target
$9.20
Rating
Undervalued
Horizon
12 months
Fair value published on 14 Oct 2026, 00:00 CEST; previously $7.02 since 9 Oct 2026, 00:00 CEST.
ACCE price target published on 13 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:06 CEST.
Price used: $10.01 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
27.2% below
+37.3% to fair value
ACCE score
65
out of 100
Analysts
50% buy
2 covering
P/E
0.0x
forward 12.3x
1-year return
+25.3%
Dividend yield
4.85%
SunCoke Energy Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
SunCoke Energy makes metallurgical coke, the carbon fuel blast furnaces need to make steel, and it runs the coke ovens and the cogeneration plants that capture waste heat from them. Its moat is contractual more than physical: long-term supply agreements with steelmakers and the capital-intensive nature of coke oven batteries, which few new entrants will fund. Near-term support comes from a forward P/E of 12.3 against trailing revenue growth of 9.5%, with an operating margin of 6.1% and a gross margin of 18.1% suggesting the top line is converting to profit, though a negative ROE of -7.5% shows that conversion has not yet reached shareholders' equity. At an $864M market cap the name is small enough to be overlooked by index funds, which hold none of it, so mispricing is plausible, but the thesis hinges on whether steel demand holds and whether the margin base keeps widening. Worth a deeper look to test those two points against the cash flow and contract book.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Heavy leverage, thin equity
Debt/Equity of 1.15 with ROE at -7.5% and net margin at -2.9%. Equity is being eroded by losses while debt sits well above book, leaving little cushion if coking coal prices fall.
moderate
Earnings growth off a low base
Earnings are up 650.0% YoY, but net margin is still negative at -2.9%. The jump reflects recovery from a weak prior year rather than a durable profit trend.
moderate
Forward P/E far above trailing
Forward P/E is 35.3 while trailing P/E is 0.0 with a net loss. The market is pricing a substantial earnings recovery that has not yet appeared in reported results.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 9.5% year over year, ahead of the 6.6% average annual growth over five years.
Latest earnings beat expectations, with earnings per share of $0.15 against $0.08 expected.
The consensus model fair value of $13.74 sits 27.2% above the current price, and the stock pays a 4.7% dividend yield.
Why it could disappoint
The company still loses money, with a net margin of -2.9% and return on equity of -7.5%.
Free cash flow over the last twelve months is only $42M, a 4.9% yield at this price.
The stock trades at a forward P/E of 35.3x, against a sector median of 17.6x, and only 1 of 2 analysts rates it Buy or Strong Buy.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where SXC's valuation models land
Price
$10.01
Model fair value
$13.74
Model range
$11.98 to $15.50
Fair value $13.74
Price $10.01
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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