SOBO Fundamental Analysis - SOUTH BOW CORP

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to SOBO. SOBO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. SOBO has a bad profitability rating. Also its financial health evaluation is rather negative. SOBO does not seem to be growing, but still is valued expensively.

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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

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

Looking at the Return On Equity, with a value of 11.34%, SOBO is in the better half of the industry, outperforming 64.76% of the companies in the same industry.

SOBO's Return On Invested Capital of 5.90% is in line compared to the rest of the industry. SOBO outperforms 52.38% of its industry peers.

		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 has a Profit Margin of 14.73%. This is in the better half of the industry: SOBO outperforms 62.86% of its industry peers.

With an excellent Operating Margin value of 36.48%, SOBO belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.

SOBO's Gross Margin of 45.33% is in line compared to the rest of the industry. SOBO outperforms 54.29% 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

SOBO has a worse debt/assets ratio than last year.

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.

With a Altman-Z score value of 0.83, SOBO perfoms like the industry average, outperforming 42.86% of the companies in the same industry.

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 comparable to the rest of the industry: SOBO outperforms 50.95% 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's Debt to Equity ratio of 2.19 is on the low side compared to the rest of the industry. SOBO is outperformed by 81.90% of its industry peers.

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

ROIC/WACC0.76

WACC7.73%

2.3 Liquidity

SOBO has a Current Ratio of 1.28. This is a normal value and indicates that SOBO is financially healthy and should not expect problems in meeting its short term obligations.

The Current ratio of SOBO (1.28) is comparable to the rest of the industry.

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.

Looking at the Quick ratio, with a value of 1.20, SOBO is in the better half of the industry, outperforming 62.86% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.28
Quick Ratio	1.2

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.

The Revenue is expected to decrease by -2.18% on average over the next years.

EPS Next Y-3.5%

EPS Next 2Y1.77%

EPS Next 3Y4.19%

EPS Next 5YN/A

Revenue Next Year-14.12%

Revenue Next 2Y-4.74%

Revenue Next 3Y-2.18%

Revenue Next 5YN/A

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.35, which indicates a rather expensive current valuation of SOBO.

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

The average S&P500 Price/Earnings ratio is at 27.44. SOBO is valued slightly cheaper when compared to this.

With a Price/Forward Earnings ratio of 15.39, SOBO is valued correctly.

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

SOBO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.

		Industry Rank	Sector Rank
PE	19.35
Fwd PE	15.39

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOBO.

Based on the Price/Free Cash Flow ratio, SOBO is valued a bit cheaper than 69.52% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	11.8
EV/EBITDA	11.15

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y1.77%

EPS Next 3Y4.19%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.49%, SOBO is a good candidate for dividend investing.

SOBO's Dividend Yield is rather good when compared to the industry average which is at 6.02. SOBO pays more dividend than 80.95% of the companies in the same industry.

SOBO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.

		Industry Rank	Sector Rank
Dividend Yield	7.49%

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%

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SOUTH BOW CORP

NYSE:SOBO (9/11/2025, 8:14:55 PM)

After market: 27.67 0 (0%)

27.67

-0.1 (-0.36%)

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 Cap5.76B

Analysts53.33

Price Target25.85 (-6.58%)

Short Float %2.07%

Short Ratio5.88

Dividend

		Industry Rank	Sector Rank
Dividend Yield	7.49%

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)1.93%

PT rev (3m)3.32%

EPS NQ rev (1m)16.9%

EPS NQ rev (3m)-33.87%

EPS NY rev (1m)0.9%

EPS NY rev (3m)0.9%

Revenue NQ rev (1m)13.44%

Revenue NQ rev (3m)-31.96%

Revenue NY rev (1m)-0.16%

Revenue NY rev (3m)-11.26%

Valuation

		Industry Rank	Sector Rank
PE	19.35
Fwd PE	15.39
P/S	2.84
P/FCF	11.8
P/OCF	8.93
P/B	2.18
P/tB	2.18
EV/EBITDA	11.15

EPS(TTM)1.43

EY5.17%

EPS(NY)1.8

Fwd EY6.5%

FCF(TTM)2.34

FCFY8.47%

OCF(TTM)3.1

OCFY11.2%

SpS9.75

BVpS12.66

TBVpS12.66

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

WACC7.73%

ROIC/WACC0.76

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-14.12%

Revenue Next 2Y-4.74%

Revenue Next 3Y-2.18%

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) 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

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