# South Bow Corporation (SOBO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Energy / Oil, Gas & Consumable Fuels. Price $37.05, market value $7.7 billion.

## Valuation
- **P/E (trailing): 16.8×** (5-yr avg 16.0×, 3-yr avg 16.0×). South Bow Corporation trades at 16.8× trailing earnings, close to its own five-year average of 16.0×. The Energy median in the September 2026 study was 16.8×. Forward P/E is 19.0×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 3.9×**. Each dollar of revenue is priced at 3.9×.
- **Price / book: 2.9×**. The shares trade at 2.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 11.6×**. Enterprise value is 11.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.8%** (5-yr avg 9.3%). Free cash flow equals 8.8% of the market value, in line with its five-year average of 9.3%. Above 5% is generally attractive.
- **Earnings yield: 5.9%**. The inverse of the P/E: 5.9% of the price is earned each year.

## Profitability
- **Gross margin: 73.2%**. South Bow Corporation keeps 73.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 37.5%**. 37.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 21.8%**. 21.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.0%**. 16.0% on shareholders' equity is solid.
- **Return on invested capital: 8.2%**. Return on all capital, debt included, is 8.2%.
- **Return on assets: 4.1%**. Each dollar of assets produces 4.1% of profit.

## Growth
- **Revenue growth (1 yr): -6.3%**. Revenue fell 6.3% over the last year.
- **EPS growth (1 yr): -0.1%**. Earnings per share fell 0.1%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 2.14**. Debt is 2.14 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 4.7×**. It would take 4.7 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.2×**. Operating profit covers interest 2.2×, thin but manageable.
- **Current ratio: 1.50** (quick 1.43). Current assets cover the next year's liabilities 1.50 times.
- **Altman Z-score: 1.35**. A Z-score of 1.35 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 5.40%** ($2.00 per share, trailing). South Bow Corporation yields 5.40%, an income-level yield.
- **Payout ratio: 96%** (61% of free cash flow). 96% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 2**. 2 straight years of increases.

## Analyst view
- **Analyst consensus: buy** (7 analysts). 7 analysts cover South Bow Corporation; the consensus is buy, with an average price target of $35.39 (-4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 38.5%** (YTD 38.8%, 3-mo 1.9%). The shares are up 38.5% over twelve months including dividends.
- **From 52-week high: -5.0%** (48.1% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): -0.10** (volatility 22%). Beta of -0.10 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SOBO · Page: https://foliofundamentals.com/stocks/sobo

Not investment advice.