NYSE
SOBO
Last Price
US $34.45
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
South Bow Corporation cash flow to debt ratio of 12.62% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
South Bow Corporation's free cash flow has increased 41.55% from $387.46M last year to $548.44M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
South Bow Corporation's debt to equity ratio is 2.16, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
South Bow Corporation's debt has decreased relative to shareholder equity from 2.19 last year to 2.16 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
South Bow Corporation has a net debt to EBITDA ratio of 4.76x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial risk - ICR.
South Bow Corporation's interest coverage ratio is 1.83, which means that the company struggles to meet interest obligations, signaling financial risk.
Financial stability - Profit margin growth.
South Bow Corporation's profit margin has increased (49.78%) in the last year from 14.91% to 22.32%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
South Bow Corporation's short-term assets of $2.01G exceed its short-term liabilities of $1.34G
Decreasing performance - ROA.
South Bow Corporation's return on assets of 3.76% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
South Bow Corporation's return on equity of 15.93%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
South Bow Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
South Bow Corporation had positive net income in 3.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
South Bow Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
South Bow Corporation has a free cash flow yield of 7.19%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
South Bow Corporation's yearly earnings has increased 39.42% since last year from $316.00M to $440.58M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
South Bow Corporation's yearly revenue has decreased -24.02% since last year from $2.12G to $1.61G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 5.43% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
South Bow Corporation has insufficient revenue history to calculate 3-year revenue CAGR.
Decreasing performance - Revenue consistency.
South Bow Corporation had revenue growth in only 0.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
South Bow Corporation had positive ROE in 3.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
South Bow Corporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
South Bow Corporation has an earnings yield of 5.55%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
South Bow Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
South Bow Corporation has an EV/EBITDA ratio of 15.02x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
South Bow Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
South Bow Corporation has a price-to-book ratio of 2.86x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
South Bow Corporation has a price-to-sales ratio of 4.02x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
15.93%
Return on equity
ROIC: 5.43%
Valuation History
17.9X
Price to Earnings
EV/EBITDA: 15.0X
Cash flow
Profit margin
-
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Fair Value
Market $34.45
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