South Bow Corporation (SOBO) Financial Ratios
3 years of historical data (2023–2025) · Energy · Oil & Gas Midstream
EV/EBITDA
↑
22.31
↑+51% vs avg
5yr avg: 14.78
30Y Low10.3·High19.2
P/FCF
↓
13.64
+18% vs avg
5yr avg: 11.56
30Y Low10.5·High12.7
P/B Ratio
↑
2.77
↑+38% vs avg
5yr avg: 2.00
30Y Low1.9·High2.1
ROE
↑
16.6%
↓+14% vs avg
5yr avg: 14.6%
30Y Low12%·High17%
Debt/EBITDA
↑
10.16
↑+37% vs avg
5yr avg: 7.42
30Y Low5.8·High10.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SOBO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
South Bow Corporation trades at 17.0x earnings, 19% above its 5-year average of 14.3x, sitting at the 100th percentile of its historical range. Compared to the Energy sector median P/E of 15.5x, the stock trades at a premium of 10%. On a free-cash-flow basis, the stock trades at 13.6x P/FCF, 18% above the 5-year average of 11.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Market Cap | $7.5B | $5.7B | $4.9B | — |
| Enterprise Value | $12.7B | $10.9B | $10.2B | — |
| P/E Ratio → | 17.00 | 13.02 | 15.51 | — |
| P/S Ratio | 4.64 | 3.56 | 2.31 | — |
| P/B Ratio | 2.77 | 2.12 | 1.88 | — |
| P/FCF | 13.64 | 10.46 | 12.67 | — |
| P/OCF | 10.25 | 7.86 | 9.74 | — |
P/E links to full P/E history page with 30-year chart
SOBO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
South Bow Corporation's enterprise value stands at 22.3x EBITDA, 51% above its 5-year average of 14.8x. The Energy sector median is 7.8x, placing the stock at a 185% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| EV / Revenue | — | 6.79 | 4.82 | — |
| EV / EBITDA | 22.31 | 19.24 | 10.32 | — |
| EV / EBIT | 39.97 | 34.47 | 12.69 | — |
| EV / FCF | — | 19.95 | 26.39 | — |
SOBO Profitability
Margins and return-on-capital ratios measuring operating efficiency
South Bow Corporation earns an operating margin of 19.7%, above the Energy sector average of 13.8%. Operating margins have compressed from 34.9% to 19.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 16.6% indicates solid capital efficiency, compared to the sector median of 7.2%. ROIC of 3.0% represents below-average returns on invested capital versus a sector median of 6.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Gross Margin | 19.2% | 19.2% | 70.7% | 82.5% |
| Operating Margin | 19.7% | 19.7% | 35.1% | 34.9% |
| Net Profit Margin | 27.4% | 27.4% | 14.9% | 22.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | 16.6% | 16.6% | 11.6% | 15.6% |
| ROA | 3.9% | 3.9% | 2.7% | 3.7% |
| ROIC | 3.0% | 3.0% | 6.8% | 6.1% |
| ROCE | 3.3% | 3.3% | 7.6% | 7.0% |
SOBO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
South Bow Corporation carries a Debt/EBITDA ratio of 10.2x, which is highly leveraged (290% above the sector average of 2.6x). Net debt stands at $5.2B ($5.8B total debt minus $574M cash). Interest coverage of just 0.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 2.14 | 2.14 | 2.19 | 2.10 |
| Debt / EBITDA | 10.16 | 10.16 | 5.77 | 6.33 |
| Net Debt / Equity | — | 1.93 | 2.04 | 2.01 |
| Net Debt / EBITDA | 9.15 | 9.15 | 5.37 | 6.05 |
| Debt / FCF | — | 9.49 | 13.73 | 7.70 |
| Interest Coverage | 0.94 | 0.94 | 2.08 | 3.55 |
SOBO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.50x means South Bow Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.26x to 1.50x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 1.50 | 1.50 | 1.25 | 1.26 |
| Quick Ratio | 1.43 | 1.43 | 1.13 | 1.18 |
| Cash Ratio | 0.43 | 0.43 | 0.23 | 0.13 |
| Asset Turnover | — | 0.14 | 0.19 | 0.17 |
| Inventory Turnover | 13.04 | 13.04 | 3.00 | 2.19 |
| Days Sales Outstanding | — | 266.91 | 215.73 | 255.59 |
SOBO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
South Bow Corporation returns 5.7% to shareholders annually primarily through dividends. The payout ratio of 96.1% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 5.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Dividend Yield | 5.7% | 7.4% | — | — |
| Payout Ratio | 96.1% | 96.1% | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Earnings Yield | 5.9% | 7.7% | 6.4% | — |
| FCF Yield | 7.3% | 9.6% | 7.9% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 5.7% | 7.4% | 0.0% | — |
| Shares Outstanding | — | $209M | $208M | $208M |
Peer Comparison
Compare SOBO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SOBOYou | $7B | 17.0 | 22.3 | 13.6 | 19.2% | 19.7% | 16.6% | 3.0% | 10.2 |
 KMI | $70B | 23.1 | 14.1 | 21.8 | 43.7% | 28.4% | 9.5% | 5.6% | 4.5 |
 WMB | $89B | 34.2 | 17.6 | 89.0 | 42.9% | 36.8% | 17.5% | 7.7% | 4.4 |
 OKE | $54B | 15.7 | 10.2 | 21.9 | 21.5% | 20.7% | 15.2% | 9.6% | 3.9 |
 TRP | $70B | 29.2 | 16.9 | 47.8 | 50.0% | 44.2% | 9.3% | 5.2% | 6.4 |
 ENB | $119B | 23.7 | 18.8 | 37.1 | 33.0% | 16.8% | 9.4% | 4.1% | 8.8 |
 EPD | $79B | 13.8 | 11.8 | 26.7 | 13.6% | 13.1% | 19.3% | 8.3% | 3.7 |
 ET | $65B | 13.9 | 9.1 | 16.8 | 21.8% | 11.4% | 10.2% | 6.3% | 4.9 |
 MPLX | $58B | 11.8 | 13.4 | 14.1 | 45.2% | 40.3% | 34.4% | 9.9% | 4.3 |
 PAA | $15B | 12.9 | 9.1 | 6.6 | 6.0% | 3.2% | 11.0% | 5.3% | 4.7 |
 PSX | $67B | 15.4 | 13.0 | 24.4 | 4.9% | 2.7% | 15.0% | 5.3% | 3.4 |
| Energy Median | — | 15.5 | 7.8 | 13.8 | 33.7% | 13.8% | 7.2% | 6.2% | 2.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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SOBO — Frequently Asked Questions
Quick answers to the most common questions about buying SOBO stock.
What is South Bow Corporation's P/E ratio?
South Bow Corporation's current P/E ratio is 17.0x. The historical average is 14.3x. This places it at the 100th percentile of its historical range.
What is South Bow Corporation's EV/EBITDA?
South Bow Corporation's current EV/EBITDA is 22.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.8x.
What is South Bow Corporation's ROE?
South Bow Corporation's return on equity (ROE) is 16.6%. The historical average is 14.6%.
Is SOBO stock overvalued?
Based on historical data, South Bow Corporation is trading at a P/E of 17.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is South Bow Corporation's dividend yield?
South Bow Corporation's current dividend yield is 5.65% with a payout ratio of 96.1%.
What are South Bow Corporation's profit margins?
South Bow Corporation has 19.2% gross margin and 19.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does South Bow Corporation have?
South Bow Corporation's Debt/EBITDA ratio is 10.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.