(SOBO) South Bow - Overview
Sector: Energy | Industry: Oil & Gas Midstream | Exchange: NYSE (USA) | Market Cap: 7.828m USD | Total Return: 54.1% in 12m
Avg Turnover: 24.1M
Qual. Beats: 0
Rev. Trend: -75.4%
Warnings
High Debt/EBITDA (6.7) with thin interest coverage (1.8)
Altman Z'' 0.98 < 1.0 - financial distress zone
Tailwinds
Idiosyncratic Leader
South Bow Corporation is a Calgary-based energy infrastructure company focused on the transportation and marketing of crude oil. Its primary asset, the Keystone Pipeline System, facilitates the movement of Canadian heavy crude from Alberta to major refining hubs in the U.S. Midwest and Gulf Coast. The company’s integrated business model includes midstream marketing services, logistics, and storage at strategic terminals.
The company operates within the midstream sector, where revenue is typically generated through long-term, fee-based contracts that reduce direct exposure to commodity price volatility. This infrastructure serves as a critical link between the Alberta oil sands-one of the worlds largest oil reserves-and high-complexity refineries designed to process heavy feedstock. South Bow maintains approximately 4,900 kilometres of pipeline infrastructure across North America.
Investors can further evaluate these infrastructure assets by reviewing the detailed metrics available on ValueRay.
- Keystone Pipeline throughput volumes drive long-term stable cash flow and dividends
- WTI-WCS price differentials impact demand for marketing and logistics services
- Regulatory changes in U.S. energy policy affect cross-border pipeline operations
- High interest rates increase debt servicing costs for capital-intensive infrastructure projects
- Expansion of Alberta oil sands production increases utilization of regional feeder pipelines
| Net Income: 397.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.85 > 1.0 |
| NWC/Revenue: 45.28% < 20% (prev 21.22%; Δ 24.06% < -1%) |
| CFO/TA 0.07 > 3% & CFO 783.3m > Net Income 397.1m |
| Net Debt (5.19b) to EBITDA (780.4m): 6.65 < 3 |
| Current Ratio: 1.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (208.5m) vs 12m ago -0.10% < -2% |
| Gross Margin: 37.92% > 18% (prev 0.57%; Δ 3.73k% > 0.5%) |
| Asset Turnover: 14.47% > 50% (prev 19.40%; Δ -4.93% > 0%) |
| Interest Coverage Ratio: 1.78 > 6 (EBITDA TTM 780.4m / Interest Expense TTM 308.4m) |
| A: 0.07 (Total Current Assets 2.18b - Total Current Liabilities 1.45b) / Total Assets 11.3b |
| B: -0.01 (Retained Earnings -59.2m / Total Assets 11.3b) |
| C: 0.05 (EBIT TTM 549.4m / Avg Total Assets 11.2b) |
| D: 0.23 (Book Value of Equity 2.01b / Total Liabilities 8.61b) |
| Altman-Z'' = 0.98 = BB |
| DSRI: 1.13 (Receivables 980.2m/1.15b, Revenue 1.62b/2.17b) |
| GMI: 1.50 (GM 37.92% / 56.86%) |
| AQI: 1.04 (AQ_t 0.08 / AQ_t-1 0.08) |
| SGI: 0.75 (Revenue 1.62b / 2.17b) |
| TATA: -0.03 (NI 397.1m - CFO 783.3m) / TA 11.3b) |
| Beneish M = -2.65 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 38.18 with a total of 456,007 shares traded.
Over the past week, the price has changed by +2.41%,
over one month by +19.31%,
over three months by +21.88% and
over the past year by +54.13%.
South Bow has no consensus analysts rating.
P/E Trailing = 18.5792
P/E Forward = 21.8341
P/S = 3.9556
P/B = 2.9418
Revenue TTM = 1.62b USD
EBIT TTM = 549.4m USD
EBITDA TTM = 780.4m USD
Long Term Debt = 5.75b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 5.79b USD (from shortLongTermDebtTotal, last quarter) + Leases 23.0m
Net Debt = 5.19b USD (calculated: Debt 5.79b - CCE 601.0m)
Enterprise Value = 13.0b USD (7.83b + Debt 5.79b - CCE 601.0m)
Interest Coverage Ratio = 1.78 (Ebit TTM 549.4m / Interest Expense TTM 308.4m)
EV/FCF = 21.38x (Enterprise Value 13.0b / FCF TTM 609.0m)
FCF Yield = 4.68% (FCF TTM 609.0m / Enterprise Value 13.0b)
FCF Margin = 37.50% (FCF TTM 609.0m / Revenue TTM 1.62b)
Net Margin = 24.45% (Net Income TTM 397.1m / Revenue TTM 1.62b)
Gross Margin = 37.92% ((Revenue TTM 1.62b - Cost of Revenue TTM 1.01b) / Revenue TTM)
Gross Margin QoQ = 21.99% (prev 24.46%)
Tobins Q-Ratio = 1.15 (Enterprise Value 13.0b / Total Assets 11.3b)
Interest Expense / Debt = 5.32% (Interest Expense 308.4m / Debt 5.79b)
Taxrate = 23.00% (22.7m / 98.6m)
NOPAT = 423.1m (EBIT 549.4m * (1 - 23.00%))
Current Ratio = 1.51 (Total Current Assets 2.18b / Total Current Liabilities 1.45b)
Debt / Equity = 2.17 (Debt 5.79b / totalStockholderEquity, last quarter 2.67b)
Debt / EBITDA = 6.65 (Net Debt 5.19b / EBITDA 780.4m)
Debt / FCF = 8.53 (Net Debt 5.19b / FCF TTM 609.0m)
Total Stockholder Equity = 2.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.54% (Net Income 397.1m / Total Assets 11.3b)
RoE = 15.68% (Net Income TTM 397.1m / Total Stockholder Equity 2.53b)
RoCE = 6.63% (EBIT 549.4m / Capital Employed (Equity 2.53b + L.T.Debt 5.75b))
RoIC = 4.59% (NOPAT 423.1m / Invested Capital 9.23b)
WACC = 5.59% (E(7.83b)/V(13.6b) * Re(6.70%) + D(5.79b)/V(13.6b) * Rd(5.32%) * (1-Tc(0.23)))
Discount Rate = 6.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 67.51 | Cagr: 0.19%
[DCF] Terminal Value 77.97% ; FCFF base≈524.3m ; Y1≈601.0m ; Y5≈884.5m
[DCF] Fair Price = 38.92 (EV 13.3b - Net Debt 5.19b = Equity 8.12b / Shares 208.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.14 | # QB: 0
Revenue Correlation: -75.39 | Revenue CAGR: -10.37% | SUE: N/A | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.43 | Chg30d=+2.65% | Revisions=+11% | Analysts=9
EPS next Quarter (2026-09-30): EPS=0.44 | Chg30d=-0.36% | Revisions=+0% | Analysts=9
EPS current Year (2026-12-31): EPS=1.76 | Chg30d=+0.59% | Revisions=+27% | GrowthEPS=-10.6% | GrowthRev=-1.1%
EPS next Year (2027-12-31): EPS=1.98 | Chg30d=+0.32% | Revisions=+8% | GrowthEPS=+12.2% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +27%