South Bow SOBO
CanadaEnergy · Oil & Gas MidstreamUSD
35.44 USD (+6.2%)
7 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
South Bow Corporation is a Canadian energy infrastructure (midstream) company that owns and operates oil and natural gas pipelines, generating revenue primarily through regulated transportation tariffs.
Key points
from its scores- ✓Good share-price trend7.7
- ✓Strong growth7.0
- !Balance sheet could be stronger5.1
- !Somewhat demanding valuation5.6
- !Average business quality5.8
AI analysis
bottom line, main risk, context and newsThe stability of the transportation business and the 5.99% dividend offset the risk of a highly leveraged balance sheet, but there are no clear catalysts to increase the position.
South Bow shows an energy infrastructure profile with a solid operating margin of 43.77% and earnings growth of 39.10%, but its high debt (ND/EBITDA of 5.03) and a payout of 90.91% limit its appeal in a rising rate environment.
The main risk is the high leverage (Net Debt/EBITDA of 5.03) in a context of rising interest rates, which makes debt service more expensive and could pressure the dividend if cash flow does not keep up.
Context and risks
South Bow is a natural gas and liquids midstream company based in Canada, a country with stable governance but moderate regulatory risk for pipelines (tariff reviews, environmental approvals). Its high leverage (Net Debt/EBITDA of 5.03) amplifies sensitivity to a rising rate environment, although its regulated transportation business provides stable cash flows.
Is South Bow stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 23% above the Energy median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 15.2 | 15.7 | −3% |
| EV / EBITDA | 12.0 | 8.0 | +49% |
| Price / book | 2.6 | 2.2 | +17% |
| Price / sales | 3.5 | 1.9 | +82% |
Sector: median of the 102 Energy companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.6 out of 10 (median for Energy: 5.9).
Average analyst target: 35.44 USD, +6.2% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.8 (sector 5.8), Growth 7.0 (sector 7.2).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Energy medianValuation
- P/E
- 15.2
- Forward P/E
- 17.2
- EV / EBITDA
- 12.0
- Price / book
- 2.6
- Price / sales
- 3.5
- PEG
- 0.49
- Market cap
- 7.0B USD
- Enterprise value
- 12.0B USD
Profitability
- ROE
- 17.4%
- ROA
- 4.1%
- ROIC (approx.)
- 10.4%
- Gross margin
- 50.2%
- Operating margin
- 43.8%
- Net margin
- 23.0%
- Free cash flow
- 338.0M USD
- FCF yield
- 4.9%
- Cash conversion
- 34%
Solvency
- Total debt
- 5.8B USD
- Net debt
- 5.0B USD
- Cash
- 726.0M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 5.03
- Debt / equity
- 216.10
- Current ratio
- 1.52
- Quick ratio
- 1.14
Growth
- Revenue growth
- +4.2%
- Earnings growth
- +39.1%
- EPS (TTM)
- 2.20 USD
- EPS (forward)
- 1.94 USD
Dividend
- Dividend yield
- 6.0%
- Payout
- 90.9%
Risk and market
- Beta
- 0.99
- Analyst consensus
- Buy (7)
- Target price
- 35.44 USD
- 52-week range
- 25.02 – 39.02
Recent news
All SOBO news →Compare it with its sector
All 102 in Energy →Frequently asked questions about South Bow
Is South Bow stock cheap or expensive?
On P/E and EV / EBITDA, it trades 23% above the Energy median on average. Valuation score: 5.6 out of 10 (median for Energy: 5.9). Average analyst target: 35.44 USD, +6.2% versus the price. This is not investment advice.
What score does South Bow get on MeridIAn Screener?
It scores 6.1 out of 10, rank 932 of 2,130 (better than 55% of the companies analysed). Its strongest category is Momentum (7.7) and its weakest, Financial health (5.1). Analysis of 08/10/2026.
What is South Bow's P/E ratio?
Its P/E is 15.2: the share price equals 15.2 times earnings per share over the last 12 months. The Energy median is 15.7. Based on the earnings analysts expect, the forward P/E is 17.2.
How much is South Bow worth on the stock market?
Its market capitalisation is 7.0B USD and its enterprise value, debt included, is 12.0B USD.
How much debt does South Bow have?
Its net debt (debt minus cash) is 5.0B USD. That is 5.03 times its EBITDA; the Energy median is 1.23.
Does South Bow pay a dividend?
Yes: its dividend yield is 5.99% and it pays out 91% of its earnings.
How has South Bow stock performed over the last year?
It has risen 27.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 25.02 and 39.02 USD. Past performance does not guarantee future results.
What do analysts think of South Bow?
7 analysts cover it; their average recommendation is “Buy” and their average target is 35.44 USD (+6.2% versus the price). It is an estimate, not market data.