South Bow Corporation
South Bow Corporation is an energy infrastructure company that owns and operates liquids pipeline systems and related facilities across Canada and the United States. South Bow Corporation focuses on the transportation of crude oil through its Keystone Pipeline System, while also providing marketing activities and other pipeline operations through its Intra-Alberta & Other segment. Its infrastructure connects major supply regions in Alberta with key refining and demand centers in the U.S. Midwest and Gulf Coast, making it an important part of North America’s midstream energy network. The company also supports storage and terminal services tied to its pipeline operations, helping move crude oil efficiently between production basins and downstream markets. Based in Calgary, South Bow Corporation serves producers, refiners, and other energy market participants that rely on long-distance liquid transportation and associated logistics.
$34.75
+$0.29 (+0.84%)
Price from 2 days ago
36.00% operating margin is above average. ROIC at 7.40%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue declined 6.3% YoY. The question is whether this is cyclical or a structural shift.
Net debt of $5.24B represents 9.7x FCF, leverage limits flexibility.
20.2x earnings, 10.6x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$2.00B
▼ -6.3% YoY
Net Income (TTM)
$460M
▲ +37.0% YoY
Op. Margin
37.48%
▲ +0.9pp YoY
ROIC
7.40%
▲ +0.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$682M
▲ +32.4% YoY
Op. Cash Flow (TTM)
$839M
▲ +27.1% YoY
Net Debt
$5.24B
Cash & Equiv.
$549M
Continue Research
Is South Bow (SOBO) overvalued?
At a P/E of 20.2 and a price-to-free-cash-flow of 10.6, South Bow (SOBO) trades below a two-stage DCF intrinsic value of about $139.77 per share, so at $34.75 the stock looks undervalued (302.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, South Bow scores 56/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.9%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is South Bow's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $139.77 per share for SOBO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $104.83. At today's $34.75, that puts the stock about 302.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is South Bow a high-quality business?+
South Bow scores 56 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 37.5% operating margin and a 7.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does South Bow (SOBO) pay a dividend, and how much?+
Yes, South Bow pays a regular dividend of about $1.00 per share per year (typically in quarterly installments), a yield of roughly 2.9% at the current price. That is a payout ratio of about 45.4% of earnings, so the dividend is well covered. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For SOBO's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is South Bow a good stock to buy right now?+
That depends on valuation and quality together, not either alone. SOBO currently trades below its estimated intrinsic value and scores 56/100 on quality (mixed). It also yields about 2.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Oil & Gas Midstream
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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