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South Bow Corporation (SOBO) 10-Year Financial Performance & Capital Metrics

SOBO • • Industrial / General
EnergyMidstream Oil & GasPipeline & Gathering SystemsCrude Oil Pipeline Operators
AboutSouth Bow Corp.is an energy infrastructure company. It engages in the construction and operation of pipelines that transport crude oil and other liquids across Canada and the United States. The company was founded on December 15, 2023 and is headquartered in Calgary, Canada.Show more
  • Revenue $2.12B +5.7%
  • EBITDA $991M +5.0%
  • Net Income $316M -28.5%
  • EPS (Diluted) 1.52 -28.6%
  • Gross Margin 70.66% -14.3%
  • EBITDA Margin 46.75% -0.7%
  • Operating Margin 35.14% +0.7%
  • Net Margin 14.91% -32.4%
  • ROE 11.6% -25.5%
  • ROIC 6.78% +10.4%
  • Debt/Equity 2.19 +4.1%
  • Interest Coverage 1.92 -39.7%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓FCF machine: 18.3% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Healthy 5Y average net margin of 18.5%

✗Weaknesses

  • ✗High debt to equity ratio of 2.2x
  • ✗Low asset turnover indicates capital-intensive operations

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-
5Y-
3Y-
TTM-13.21%

Profit (Net Income) CAGR

10Y-
5Y-
3Y-
TTM-10.12%

EPS CAGR

10Y-
5Y-
3Y-
TTM-21.89%

ROCE

10Y Avg7.33%
5Y Avg7.33%
3Y Avg7.33%
Latest7.63%

Peer Comparison

Crude Oil Pipeline Operators
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Valuation
Per Share
Growth
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Technical
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Shares & Dilution
Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
PAGPPlains GP Holdings, L.P.3.99B20.1738.792.79%0.4%1.31%46.2%0.55
PAAPlains All American Pipeline, L.P.13.44B19.0526.102.79%2.42%8.7%13.92%0.61
SOBOSouth Bow Corporation5.45B26.1717.225.74%17.26%17.06%7.11%2.19

Profit & Loss

Dec 2023Dec 2024
Sales/Revenue+2B2.12B
Revenue Growth %-0.06%
Cost of Goods Sold+351M622M
COGS % of Revenue0.18%0.29%
Gross Profit+1.65B1.5B
Gross Margin %0.82%0.71%
Gross Profit Growth %--0.09%
Operating Expenses+954M753M
OpEx % of Revenue0.48%0.36%
Selling, General & Admin00
SG&A % of Revenue--
Research & Development00
R&D % of Revenue--
Other Operating Expenses954M753M
Operating Income+700M745M
Operating Margin %0.35%0.35%
Operating Income Growth %-0.06%
EBITDA+944M991M
EBITDA Margin %0.47%0.47%
EBITDA Growth %-0.05%
D&A (Non-Cash Add-back)244M246M
EBIT782M806M
Net Interest Income+-188M-376M
Interest Income32M12M
Interest Expense220M388M
Other Income/Expense-138M-327M
Pretax Income+562M418M
Pretax Margin %0.28%0.2%
Income Tax+120M102M
Effective Tax Rate %0.79%0.76%
Net Income+442M316M
Net Margin %0.22%0.15%
Net Income Growth %--0.29%
Net Income (Continuing)442M316M
Discontinued Operations00
Minority Interest00
EPS (Diluted)+2.131.52
EPS Growth %--0.29%
EPS (Basic)2.131.52
Diluted Shares Outstanding207.6M208.2M
Basic Shares Outstanding207.6M207.89M
Dividend Payout Ratio--

Balance Sheet

Dec 2023Dec 2024
Total Current Assets+2.61B2.2B
Cash & Short-Term Investments262M397M
Cash Only262M397M
Short-Term Investments00
Accounts Receivable1.4B1.25B
Days Sales Outstanding255.59215.73
Inventory160M207M
Days Inventory Outstanding166.38121.47
Other Current Assets788M313M
Total Non-Current Assets+9.42B9.13B
Property, Plant & Equipment8.43B8.21B
Fixed Asset Turnover0.24x0.26x
Goodwill00
Intangible Assets00
Long-Term Investments813M732M
Other Non-Current Assets177M177M
Total Assets+12.03B11.33B
Asset Turnover0.17x0.19x
Asset Growth %--0.06%
Total Current Liabilities+2.08B1.76B
Accounts Payable1.23B1.54B
Days Payables Outstanding1.28K906.04
Short-Term Debt00
Deferred Revenue (Current)00
Other Current Liabilities753M0
Current Ratio1.26x1.25x
Quick Ratio1.18x1.13x
Cash Conversion Cycle-856.05-568.85
Total Non-Current Liabilities+7.12B6.96B
Long-Term Debt5.97B5.72B
Capital Lease Obligations6M0
Deferred Tax Liabilities01.1B
Other Non-Current Liabilities1.14B140M
Total Liabilities9.19B8.72B
Total Debt+5.97B5.72B
Net Debt5.71B5.32B
Debt / Equity2.10x2.19x
Debt / EBITDA6.33x5.77x
Net Debt / EBITDA6.05x5.37x
Interest Coverage3.18x1.92x
Total Equity+2.84B2.61B
Equity Growth %--0.08%
Book Value per Share13.6812.54
Total Shareholders' Equity2.84B2.61B
Common Stock2.97B2.2B
Retained Earnings0-49M
Treasury Stock00
Accumulated OCI-128M-198M
Minority Interest00

Cash Flow

Dec 2023Dec 2024
Cash from Operations+779M503.6M
Operating CF Margin %0.39%0.24%
Operating CF Growth %--0.35%
Net Income442M300.83M
Depreciation & Amortization244M234.19M
Stock-Based Compensation00
Deferred Taxes67M56.17M
Other Non-Cash Items60M-28.56M
Working Capital Changes-34M-59.02M
Change in Receivables-251M96.15M
Change in Inventory63M-47.6M
Change in Payables-120M-77.11M
Cash from Investing+62M-76.16M
Capital Expenditures-37M-116.14M
CapEx % of Revenue0.02%0.05%
Acquisitions--
Investments--
Other Investing99M3.81M
Cash from Financing+-577M-292.26M
Debt Issued (Net)--
Equity Issued (Net)--
Dividends Paid00
Share Repurchases--
Other Financing-227M-122.81M
Net Change in Cash--
Free Cash Flow+742M387.46M
FCF Margin %0.37%0.18%
FCF Growth %--0.48%
FCF per Share3.571.86
FCF Conversion (FCF/Net Income)1.76x1.59x
Interest Paid00
Taxes Paid34M0

Key Ratios

Metric20232024
Return on Equity (ROE)15.56%11.6%
Return on Invested Capital (ROIC)6.14%6.78%
Gross Margin82.49%70.66%
Net Margin22.04%14.91%
Debt / Equity2.10x2.19x
Interest Coverage3.18x1.92x
FCF Conversion1.76x1.59x
Revenue Growth-5.74%

Frequently Asked Questions

Valuation & Price

South Bow Corporation (SOBO) has a price-to-earnings (P/E) ratio of 17.2x. This is roughly in line with market averages.

Growth & Financials

South Bow Corporation (SOBO) reported $1.86B in revenue for fiscal year 2024. This represents a 7% decrease from $2.00B in 2023.

South Bow Corporation (SOBO) grew revenue by 5.7% over the past year. This is steady growth.

Yes, South Bow Corporation (SOBO) is profitable, generating $321.4M in net income for fiscal year 2024 (14.9% net margin).

Dividend & Returns

South Bow Corporation (SOBO) has a return on equity (ROE) of 11.6%. This is reasonable for most industries.

South Bow Corporation (SOBO) generated $234.8M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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