Stock fact sheet · data as of
South Bow Corporation (SOBO): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Midstream · Canada · High Yield Income
Is SOBO undervalued?
At 34.03 (close of 16 Oct 2026), SOBO trades 24% under the GLS average fair value of 44.93. 4 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between GLS Growth (6.47) and DCF (91.63). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files SOBO under High Yield Income: a dividend yield above 4%.
Nine valuation models for SOBO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 91.63 | +169% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 25.24 | -26% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 49.31 | +45% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 15.82 | -54% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 6.47 | -81% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 88.90 | +161% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 73.40 | +116% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 29.05 | -15% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 24.57 | -28% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -30.96 | -191% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 34.75 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
South Bow Corporation scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 5.1%, ROE 16.0%, ROA 3.9% - with debt at 2.14 times equity and a free-cash-flow yield of 11.2%. Debt of 2.14 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 5.79% (payout ratio 110%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 8/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 5.1% |
|---|---|---|---|
| GLS Moat | 4.5 / 10 | ROE | 16.0% |
| Debt / equity | 2.14 | ROA | 3.9% |
| Free-cash-flow yield | 11.2% | Payout ratio | 110% |
| Institutions | 8 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 84: Prime
With a Wheel Score of 84, South Bow Corporation sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 23/25, Health 18/20, Moat 7/15, Premium 20/20, Stability 17/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 38% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 6,390 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 679k shares a day on a market cap of $7.1B, with a beta of 0.23 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 23 / 25 | 24% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 7 / 15 | moat 4.5/10 | |
| Premium | 20 / 20 | implied volatility 38% | |
| Stability | 17 / 20 | 679k shares/day, $7.1B cap, beta 0.23 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (after the close), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Midstream
The 12 companies below are the closest to South Bow Corporation by market cap within the Oil & Gas Midstream industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HESM Hess Midstream LP | 30.62 | 50.03 | +39% | 90Prime | $6.3B |
| PAGP Plains GP Holdings LP | 27.11 | 67.24 | +60% | 77Good | $5.4B |
| AM Antero Midstream Corporation | 19.92 | 23.06 | +14% | 73Good | $9.5B |
| GLNG Golar LNG Limited | 44.95 | 34.79 | -29% | 60Fair | $4.6B |
| KNTK Kinetik Holdings Inc. | 53.44 | 169.33 | +68% | 82Prime | $4.3B |
| DTM DT Midstream, Inc. | 118.81 | 81.27 | -46% | 62Fair | $12.1B |
| EE Excelerate Energy, Inc. | 32.51 | 35.30 | +8% | 74Good | $3.7B |
| DKL Delek Logistics Partners, LP | 55.94 | 49.57 | -13% | 57Fair | $3.2B |
| VNOM Viper Energy, Inc. | 44.13 | 18.07 | -144% | 59Fair | $15.9B |
| PAA Plains All American Pipeline, L.P. | 24.98 | 51.82 | +52% | 80Prime | $17.6B |
| WES Western Midstream Partners, LP | 44.82 | 60.89 | +26% | 81Prime | $18.5B |
| TCPA TransCanada PipeLines Limited 6 | 20.13 | 36.01 | +44% | 39No options | $20.4B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SOBO
Is SOBO undervalued right now?
By the GLS models, moderately: at 34.03 the stock trades 24% below the average fair value of 44.93 (data as of 16 Oct 2026).
What is the Wheel Score of SOBO and what does it mean?
SOBO scores 84 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SOBO?
44.93 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does South Bow Corporation report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SOBO have listed options, and how liquid are they?
Yes. The nightly snapshot found 88 listed contracts with 6,390 open interest across all expiries and implied volatility of 38% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.