Stock fact sheet · data as of
South Bow Corporation (SOBO): fair value, margin of safety and Wheel Score
Ticker symbol SOBO · Energy · Oil & Gas Midstream · Canada · Value Income
Is SOBO undervalued?
At 34.05 (close of 5 Nov 2026), SOBO trades 25% under the GLS average fair value of 45.58. 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 scan; 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 (6.48) and DCF (97.69). 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.
Ranked against every other company we cover, SOBO is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 45, growth score 14, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
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 | 97.69 | +187% | 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 | 48.78 | +43% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 15.54 | -54% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 6.48 | -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 | 29.56 | -13% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 24.59 | -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 | 36.33 | +7% | 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 "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 4.5/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, 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 5.89% (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 50: Fair
A Wheel Score of 50 keeps South Bow Corporation under 70, the mark only a stock that passes all 9 Wheel Trade Filters can reach: it fails filter 1, options that actually trade - options too quiet (3,989 open interest, 57 a day); and filter 5, can repay its debt - 7.9 years to repay its debt (over 3). The parts: value strong, premium strong, moat fair, health strong, red flags strong, option trading weak, stability good.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 3,989 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 706k 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 rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (3,989 open interest, 57 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 7.9 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 25% below fair value | |
| Premium | Strong | implied volatility 34% | |
| Moat | Fair | moat 4.5/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Strong | Red Flags score 95/100 | |
| Option trading | Weak | 57 contracts a day, 3,989 open interest | |
| Stability | Good | beta 0.23, $7.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for SOBO in the nightly calendar.
Analysts downgraded SOBO 1 time in the last 30 days with no upgrades; the latest action was a reiterated rating by CIBC on 22 Oct 2026.
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 | 31.80 | 50.30 | +37% | 54Fair | $6.6B |
| AM Antero Midstream Corporation | 19.86 | 27.31 | +27% | 44Weak | $9.4B |
| PAGP Plains GP Holdings LP | 26.93 | 67.82 | +60% | 41Weak | $5.3B |
| GLNG Golar LNG Limited | 44.88 | 34.79 | -29% | 40Weak | $4.6B |
| DTM DT Midstream, Inc. | 117.58 | 81.85 | -44% | 34Weak | $12.0B |
| KNTK Kinetik Holdings Inc. | 51.17 | 203.51 | +75% | 47Weak | $4.1B |
| EE Excelerate Energy, Inc. | 34.29 | 63.78 | +46% | 80Good | $3.9B |
| VNOM Viper Energy, Inc. | 41.06 | 47.78 | +14% | 74Good | $14.7B |
| DKL Delek Logistics Partners, LP | 52.31 | 50.17 | -4% | 34Weak | $3.0B |
| WES Western Midstream Partners, LP | 42.54 | 49.40 | +14% | 37Weak | $17.6B |
| PAA Plains All American Pipeline, L.P. | 25.21 | 51.86 | +51% | 50Fair | $17.8B |
| TCPA TransCanada PipeLines Limited 6 | 21.13 | 37.12 | +43% | 34No options | $21.4B |
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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 top 10 stocks that pass all 9 Wheel Trade Filters, 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 34.05 the stock trades 25% below the average fair value of 45.58 (data as of 5 Nov 2026).
What is the Wheel Score of SOBO and what does it mean?
SOBO scores 50 out of 100 (Fair) - it fails Wheel Trade Filters 1, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for SOBO?
45.58 per share as of 5 Nov 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?
No upcoming earnings date is recorded for SOBO in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does SOBO have listed options, and how liquid are they?
Yes. The nightly snapshot found 24 listed contracts with 3,989 open interest across all expiries and implied volatility of 34% 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.