SOBO Fundamental Analysis - SOUTH BOW CORP

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to SOBO. SOBO was compared to 216 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of SOBO while its profitability can be described as average. SOBO is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year SOBO was profitable.

SOBO had a positive operating cash flow in the past year.

1.2 Ratios

The Return On Assets of SOBO (2.61%) is comparable to the rest of the industry.

SOBO has a Return On Equity of 11.34%. This is amongst the best in the industry. SOBO outperforms 81.94% of its industry peers.

With a decent Return On Invested Capital value of 5.90%, SOBO is doing good in the industry, outperforming 74.54% 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

SOBO's Profit Margin of 14.73% is fine compared to the rest of the industry. SOBO outperforms 75.00% of its industry peers.

The Operating Margin of SOBO (36.48%) is better than 85.19% of its industry peers.

SOBO has a better Gross Margin (45.33%) than 72.22% 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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOBO is destroying value.

SOBO has more shares outstanding than it did 1 year ago.

The debt/assets ratio for SOBO is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.83, we must say that SOBO is in the distress zone and has some risk of bankruptcy.

SOBO has a Altman-Z score of 0.83. This is comparable to the rest of the industry: SOBO outperforms 52.78% of its industry peers.

SOBO has a debt to FCF ratio of 11.83. This is a negative value and a sign of low solvency as SOBO would need 11.83 years to pay back of all of its debts.

SOBO has a Debt to FCF ratio of 11.83. This is in the better half of the industry: SOBO outperforms 71.76% of its industry peers.

SOBO has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.

SOBO has a worse Debt to Equity ratio (2.19) than 80.56% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.19
Debt/FCF	11.83
Altman-Z	0.83

ROIC/WACC0.78

WACC7.56%

2.3 Liquidity

A Current Ratio of 1.28 indicates that SOBO should not have too much problems paying its short term obligations.

SOBO's Current ratio of 1.28 is fine compared to the rest of the industry. SOBO outperforms 67.13% 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.

SOBO has a Quick ratio of 1.20. This is in the better half of the industry: SOBO outperforms 69.91% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.28
Quick Ratio	1.2

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for SOBO have decreased strongly by -28.51% in the last year.

SOBO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.74%.

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

Based on estimates for the next years, SOBO will show a small growth in Earnings Per Share. The EPS will grow by 4.19% on average per year.

SOBO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.20% yearly.

EPS Next Y-3.5%

EPS Next 2Y1.77%

EPS Next 3Y4.19%

EPS Next 5YN/A

Revenue Next Year-12.48%

Revenue Next 2Y-4.77%

Revenue Next 3Y-2.2%

Revenue Next 5YN/A

3.3 Evolution

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

SOBO is valuated rather expensively with a Price/Earnings ratio of 19.41.

Compared to the rest of the industry, the Price/Earnings ratio of SOBO is on the same level as its industry peers.

The average S&P500 Price/Earnings ratio is at 27.38. SOBO is valued slightly cheaper when compared to this.

Based on the Price/Forward Earnings ratio of 15.47, the valuation of SOBO can be described as correct.

The rest of the industry has a similar Price/Forward Earnings ratio as SOBO.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, SOBO is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	19.41
Fwd PE	15.47

4.2 Price Multiples

SOBO's Enterprise Value to EBITDA ratio is in line with the industry average.

73.61% of the companies in the same industry are more expensive than SOBO, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	11.87
EV/EBITDA	11.16

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y1.77%

EPS Next 3Y4.19%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.31%, SOBO is a good candidate for dividend investing.

SOBO's Dividend Yield is rather good when compared to the industry average which is at 6.17. SOBO pays more dividend than 93.98% of the companies in the same industry.

Compared to an average S&P500 Dividend Yield of 2.38, SOBO pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	7.31%

5.2 History

SOBO is new to the dividend game and has less than 3 years of track record.

Dividend Growth(5Y)N/A

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

DPN/A

EPS Next 2Y1.77%

EPS Next 3Y4.19%

More info and screens

Find the best dividend stocks

Show peers with best dividend

SOUTH BOW CORP

TSX:SOBO (9/19/2025, 7:00:00 PM)

38.44

-0.58 (-1.49%)

Chartmill FA Rating

GICS SectorEnergy

GICS IndustryGroupEnergy

GICS IndustryOil, Gas & Consumable Fuels

Earnings (Last)08-06 2025-08-06/amc

Earnings (Next)N/A N/A

Inst Owners75.86%

Inst Owner ChangeN/A

Ins Owners0.12%

Ins Owner ChangeN/A

Market Cap8.01B

Analysts53.33

Price Target35.76 (-6.97%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	7.31%

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years1

Div Non Decr Years1

Ex-Date09-29 2025-09-29 (0.5)

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)2.19%

PT rev (3m)4.47%

EPS NQ rev (1m)5.89%

EPS NQ rev (3m)-33.87%

EPS NY rev (1m)0%

EPS NY rev (3m)0.9%

Revenue NQ rev (1m)11.16%

Revenue NQ rev (3m)-31.96%

Revenue NY rev (1m)1.91%

Revenue NY rev (3m)-9.57%

Valuation

		Industry Rank	Sector Rank
PE	19.41
Fwd PE	15.47
P/S	2.85
P/FCF	11.87
P/OCF	8.98
P/B	2.2
P/tB	2.2
EV/EBITDA	11.16

EPS(TTM)1.98

EY5.15%

EPS(NY)2.48

Fwd EY6.46%

FCF(TTM)3.24

FCFY8.42%

OCF(TTM)4.28

OCFY11.14%

SpS13.47

BVpS17.49

TBVpS17.49

PEG (NY)N/A

PEG (5Y)N/A

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

ROICexcg growth 3YN/A

ROICexcg 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	0.83

F-Score4

WACC7.56%

ROIC/WACC0.78

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-3.5%

EPS Next 2Y1.77%

EPS Next 3Y4.19%

EPS Next 5YN/A

Revenue 1Y (TTM)5.74%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-0.67%

Revenue Next Year-12.48%

Revenue Next 2Y-4.77%

Revenue Next 3Y-2.2%

Revenue Next 5YN/A

EBIT growth 1Y6.43%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year26.42%

EBIT Next 3Y11.94%

EBIT Next 5YN/A

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) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens