SOBO
South Bow Corp
Next earnings Aug 5, 2026 · consensus $0.43 EPS, $491M rev
$36.58
▲ +0.01%$36.58▲ +49.91%
over 1Y
L $24.01EODHDH $38.18
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.0%
1W+0.0%
1M-2.0%
3M+8.5%
YTD+33.1%
1Y+49.9%
Hold
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 25 analysts
Hold
Crude-pipeline spinoff throwing off fat fee-based cash and a big dividend, but high leverage and a near-full payout cap upside.
The read
Middling fundamentals offset by an attractive price (~69% below fair value) — worth a look on the value angle.
South Bow operates crude-oil pipeline infrastructure (the Keystone system) under largely fee-based, take-or-pay contracts, producing utility-like economics: a 54.9% operating margin and 21.8% net margin. FY2025 net income rose 37.0% to $433M and diluted EPS 36.2% to $2.07, while operating cash flow grew 35.5% to $717M and cash built 38.3% to $549M. ROE is a respectable 16.0%, and the company funds a large dividend ($416M).
Financials · annual, by fiscal year
| Line item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | $2.00B | $2.12B | $1.99B |
| Gross profit | — | — | — |
| Operating income | $1.07B | $1.09B | — |
| Net income | $442M | $316M | $433M |
| Diluted EPS | $2.13 | $1.52 | $2.07 |
| Net margin | 22.0% | 14.9% | 21.8% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$7.07B
EV / EBITDA5.3
EV / Sales3.6
EV / FCF12.3
P / FCF13.2
PEG (trailing)0.48
Earnings yield5.7%
FCF yield7.6%
Quality & risk
ROIC (est.)31.8%
Free cash flow$576M
Total debt—
Net cash$549M
Altman Z-Score1.11 distress
Piotroski F-Score5/7
Capital returns
Buyback yield—
Dividend yield (est.)5.5%
Shareholder yield5.5%
Shares Δ YoY+0.1%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Recent filings
all on EDGAR ↗6-KPeriod ending 2026-05-292026-05-29open ↗SCHEDULE 13G/AFiling2026-05-14open ↗6-KPeriod ending 2026-03-312026-05-08open ↗6-KPeriod ending 2026-03-312026-05-07open ↗6-KPeriod ending 2026-05-072026-05-07open ↗6-KPeriod ending 2026-05-072026-05-07open ↗6-KPeriod ending 2026-04-092026-04-09open ↗6-KPeriod ending 2026-04-022026-04-02open ↗6-KPeriod ending 2025-12-312026-03-16open ↗6-KPeriod ending 2026-03-132026-03-16open ↗40-FPeriod ending 2025-12-312026-03-16open ↗144Filing2026-03-09open ↗
Frequently asked
- Is South Bow Corp (SOBO) a buy?
- SOBO currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Crude-pipeline spinoff throwing off fat fee-based cash and a big dividend, but high leverage and a near-full payout cap upside.
- What is SOBO's fair value?
- A Modified-Graham model based on SOBO's SEC fundamentals estimates a fair value of about $61.67. It is an estimate from reported earnings, not a price target.
- Is SOBO overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, SOBO currently appears undervalued relative to its SEC-grounded earnings power.
- What is South Bow Corp's quality score?
- SOBO scores 73.84313725490195/100 (grade B) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0002019061, latest 6-K filed 2026-05-29) · EODHD · analysis by claude-code · as of 6/21/2026, 8:52:46 PM.
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