SOUTH BOW CORP (SOBO.CA) Stock Fundamental Analysis
Canada - TSX:SOBO - CA83671M1059 - Common Stock
38.98 CAD
+0.2 (+0.52%)
We assign a fundamental rating of 3 out of 10 to SOBO. SOBO was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While SOBO is still in line with the averages on profitability rating, there are concerns on its financial health. SOBO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SOBO had positive earnings in the past year.
In the past year SOBO had a positive cash flow from operations.
1.2 Ratios
SOBO has a better Return On Assets (2.61%) than 66.51% of its industry peers.
With an excellent Return On Equity value of 11.34%, SOBO belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.90%, SOBO is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 11.34% | ||
| ROIC | 5.9% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 14.73%, SOBO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Operating Margin value of 36.48%, SOBO belongs to the best of the industry, outperforming 85.85% of the companies in the same industry.
SOBO's Gross Margin of 45.33% is fine compared to the rest of the industry. SOBO outperforms 72.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.48% | ||
| PM (TTM) | 14.73% | ||
| GM | 45.33% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOBO is destroying value.
Compared to 1 year ago, SOBO has more shares outstanding
SOBO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that SOBO is in the distress zone and has some risk of bankruptcy.
SOBO has a Altman-Z score (0.82) which is in line with its industry peers.
The Debt to FCF ratio of SOBO is 11.83, which is on the high side as it means it would take SOBO, 11.83 years of fcf income to pay off all of its debts.
SOBO has a better Debt to FCF ratio (11.83) than 71.23% of its industry peers.
A Debt/Equity ratio of 2.19 is on the high side and indicates that SOBO has dependencies on debt financing.
SOBO has a worse Debt to Equity ratio (2.19) than 80.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 11.83 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.79
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.28 indicates that SOBO should not have too much problems paying its short term obligations.
SOBO has a Current ratio of 1.28. This is in the better half of the industry: SOBO outperforms 67.45% of its industry peers.
SOBO has a Quick Ratio of 1.20. This is a normal value and indicates that SOBO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.20, SOBO is doing good in the industry, outperforming 70.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for SOBO have decreased strongly by -28.51% in the last year.
Looking at the last year, SOBO shows a small growth in Revenue. The Revenue has grown by 5.74% in the last year.
EPS 1Y (TTM)-28.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%13.33%
Revenue 1Y (TTM)5.74%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.67%
3.2 Future
SOBO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.65% yearly.
Based on estimates for the next years, SOBO will show a decrease in Revenue. The Revenue will decrease by -2.30% on average per year.
EPS Next Y-3.17%
EPS Next 2Y0.76%
EPS Next 3Y3.76%
EPS Next 5Y5.65%
Revenue Next Year-12.67%
Revenue Next 2Y-4.86%
Revenue Next 3Y-2.3%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.39, SOBO is valued on the expensive side.
60.85% of the companies in the same industry are more expensive than SOBO, based on the Price/Earnings ratio.
SOBO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
With a Price/Forward Earnings ratio of 15.76, SOBO is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SOBO.
The average S&P500 Price/Forward Earnings ratio is at 34.98. SOBO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOBO.
SOBO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOBO is cheaper than 79.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.85 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.76%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.79%, SOBO is a good candidate for dividend investing.
SOBO's Dividend Yield is rather good when compared to the industry average which is at 5.31. SOBO pays more dividend than 96.23% of the companies in the same industry.
SOBO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
5.2 History
SOBO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y0.76%
EPS Next 3Y3.76%
TSX:SOBO (11/18/2025, 7:00:00 PM)
38.98
+0.2 (+0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.11%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap8.12B
Revenue(TTM)2.03B
Net Income(TTM)299.15M
Analysts53.64
Price Target36.23 (-7.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.45%
Min EPS beat(2)11.29%
Max EPS beat(2)19.6%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.53%
Min Revenue beat(2)-7.36%
Max Revenue beat(2)14.42%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.31%
PT rev (3m)3.53%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)5.64%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.16%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.76 | ||
| P/S | 2.85 | ||
| P/FCF | 11.85 | ||
| P/OCF | 8.96 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 11.12 |
EPS(TTM)2.01
EY5.16%
EPS(NY)2.47
Fwd EY6.35%
FCF(TTM)3.29
FCFY8.44%
OCF(TTM)4.35
OCFY11.16%
SpS13.69
BVpS17.77
TBVpS17.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 11.34% | ||
| ROCE | 7.64% | ||
| ROIC | 5.9% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 6.18% | ||
| OM | 36.48% | ||
| PM (TTM) | 14.73% | ||
| GM | 45.33% | ||
| FCFM | 24.03% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 11.83 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 61.77% | ||
| Cap/Sales | 7.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.83% | ||
| Profit Quality | 163.16% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 0.82 |
F-Score4
WACC7.43%
ROIC/WACC0.79
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%13.33%
EPS Next Y-3.17%
EPS Next 2Y0.76%
EPS Next 3Y3.76%
EPS Next 5Y5.65%
Revenue 1Y (TTM)5.74%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.67%
Revenue Next Year-12.67%
Revenue Next 2Y-4.86%
Revenue Next 3Y-2.3%
Revenue Next 5YN/A
EBIT growth 1Y6.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year22.86%
EBIT Next 3Y10.52%
EBIT Next 5Y7.96%
FCF growth 1Y-45.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-32.09%
OCF growth 3YN/A
OCF growth 5YN/A
SOUTH BOW CORP / SOBO.CA FAQ
Can you provide the ChartMill fundamental rating for SOUTH BOW CORP?
ChartMill assigns a fundamental rating of 3 / 10 to SOBO.CA.
What is the valuation status for SOBO stock?
ChartMill assigns a valuation rating of 4 / 10 to SOUTH BOW CORP (SOBO.CA). This can be considered as Fairly Valued.
What is the profitability of SOBO stock?
SOUTH BOW CORP (SOBO.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for SOBO stock?
The financial health rating of SOUTH BOW CORP (SOBO.CA) is 3 / 10.
What is the expected EPS growth for SOUTH BOW CORP (SOBO.CA) stock?
The Earnings per Share (EPS) of SOUTH BOW CORP (SOBO.CA) is expected to decline by -3.17% in the next year.