South Bow Corp

SOBO

South Bow Corporation operates as an energy infrastructure company. It operates through three segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other. The Keystone Pipeline System segment consists of the company's main liquids pipeline network, which transports crude oil from Hardisty, Alberta, to key U.S.

About the company

Country: CanadaPrice: $33.32Market Cap: $7.0B

Investment snapshot

18%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

3 / 10

NEUTRAL / FAIL

Median fair value

$28.60

-14.2% vs price

Models with upside

2 / 17

Positive margin of safety

Key risk

11 of 12 flag SOBO's debt & leverage — Graham, Buffett, Lynch +8 more

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	FAIL · Rank #967 (Top 31.2%)	NEUTRAL	PASS	PASS	FAIL	FAIL	FAIL	FAIL	FAIL	PASS	NEUTRAL	FAIL	FAIL	NEUTRAL
Score
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Intrinsic Value (annual)		N/A	N/A		N/A		N/A				N/A		N/A	N/A	N/A	N/A	N/A
Margin of Safety	-35.4%	N/A	N/A	+8.5%	N/A	-16.5%	N/A	-61.0%	+37.4%	-16.5%	N/A	-33.4%	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14

Where It Passes

Where It Falls Short

Debt & Leverage8% pass✓ 3✗ 12▾
11 of 12 flag SOBO's debt & leverage — Graham, Buffett, Lynch +8 more
LT Debt vs Net Current Assets
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest Coverage
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity
✗Lynch< 0.33
Cash - Long-term Debt
✗LynchPositive preferred
LT Debt / Total Assets Change0.00% -> 0.00%
✓PiotroskiDecreased YoY
Current Assets / Current Liabilities1.50
✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity
✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
Debt Levels
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=2.2x, D/EBITDA=N/A
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity
✗Ackman<= 1.0
Negative debt-to-equity (higher means less debt)
✗AsnessTop 30% of eligible cross-section
Valuation8% pass✓ 3✗ 25▾
12 of 13 flag SOBO's valuation — Graham, Lynch, Greenblatt +9 more
Net income / market capitalization+6.23%; #1357/6340 (top 21.4%)
✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Price / 3-yr avg EPS17.5x
✗Graham<= 15x
Price-to-Book Ratio2.6x
✗Graham<= 1.5x
P/E x P/B44.80
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)P/E 16.1x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value11.2%
✓Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=11.2%, ROC=8.6%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS16.1x
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)9.7x
✗Dreman< 8x
Price / Book Value per Share2.6x
✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessP/E=16.1x, OE Yield=9.8%
✓MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=16.1x
✗PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=16.1x, P/B=2.6x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-16.5% (IV=$28.60 vs Price=$33.32)
✗Marks>= 20% below intrinsic value
Price / FCF per Share
✗Ackman<= 25
Price vs. Trailing Low139% of trailing low ($23.90)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Positive book equity / market capitalization+0.3896; #3321/6449 (top 51.5%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS16.1x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share2.56x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.2856; #3387/5247 (top 64.6%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+0.21%; #2663/6202 (top 42.9%)
✗OshaughnessyTop 10% of eligible cross-section
Growth13% pass✓ 2✗ 11▾
7 of 8 flag SOBO's growth — Graham, Lynch, Dreman +4 more
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)P/E 16.1x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR-1.4%
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: -51.7% vs Rev: -6.3%
✓LynchInventory growth < Revenue growth
EPS Growth Direction$2.13 (2023) -> $2.07 (2025)
✗DremanPositive over recent years
EPS CAGR-1.4% CAGR over 2 years
✗Dreman> 5% annualized
Positive Net Income Frequency3/3 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth-0.3%
✗Ackman>= 5%
Positive EPS Growth Frequency1/2 years with positive EPS growth
✗AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendgross margin 82.5% -> 84.2%, operating margin 53.6% -> 36.0%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Efficiency13% pass✓ 2✗ 9▾
7 of 8 flag SOBO's efficiency — Graham, Buffett, Greenblatt +4 more
Current Ratio1.50
✗Graham>= 2.0
ROIC (3-5 yr avg)
✗Buffett> 10%
ROIC - WACC
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)8.6%
✗Greenblatt> 25%
Current Ratio Change YoY1.25 -> 1.50
✓PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.19x -> 0.18x
✗PiotroskiImproved YoY
Current Assets / Current Liabilities1.50
✓Dreman> 1.5
Return on Invested Capital
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)
✗SleepROIC > 12% in a majority of years
Profitability19% pass✓ 14✗ 21▾
13 of 16 flag SOBO's profitability — Graham, Buffett, Lynch +10 more
Net income / market capitalization+6.23%; #1357/6340 (top 21.4%)
✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive EPS (10 years)3/4 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Net Income Positive (10+ years)3/4 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)14.6%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$421.0M
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)P/E 16.1x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR-1.4%
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE16.0%
✓Lynch> 15%
EBIT / Enterprise Value11.2%
✓Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=11.2%, ROC=8.6%
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets3.87%
✓PiotroskiROA > 0
ROA Change YoY2.79% -> 3.87% (delta: +1.08%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=6.41%, ROA=3.87%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY82.3% -> 84.2%
✓PiotroskiImproved YoY
Pre-Tax Income / Revenue25.0%
✓Dreman>= 8%
Net Income / Shareholders' Equity16.0%
✓Dreman> 12%
Margin of SafetyP/E=16.1x, P/B=2.6x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity14.6% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic Value-16.5% (IV=$28.60 vs Price=$33.32)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency3/3 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue36.0%
✓Ackman>= 15%
Net Income / Shareholders Equity16.0%
✓Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend53.6% (2023) -> 36.0% (2025)
✗TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 82.5% -> 84.2%, operating margin 53.6% -> 36.0%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Gross profit / total assets+14.95%; #2431/3702 (top 65.7%)
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity+15.98%; #1071/5226 (top 20.5%)
✓AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0047; #463/5884 (top 7.9%)
✓AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years
✗Schloss>= 70% positive over 5-10 observed years (app rule)
Verdicts21% pass✓ 3✗ 11▾
Split decision: 10 FAIL · 3 NEUTRAL · 3 PASS
Overall verdict
✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #967•PiotroskiNEUTRAL (F-Score 7)✓DremanPASS (5/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✗TempletonFAIL (1/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
Valuation models29% pass✓ 2✗ 5▾
Models split on SOBO at $33.32 — fair values range $20.70–$53.26
Graham fair value$24.61
✗Graham-35.4% margin vs $33.32
Greenblatt fair value$36.42
✓Greenblatt+8.5% margin vs $33.32
Dreman fair value$28.60
✗Dreman-16.5% margin vs $33.32
Pabrai fair value$20.70
✗Pabrai-61.0% margin vs $33.32
Akre fair value$53.26
✓Akre+37.4% margin vs $33.32
Marks fair value$28.60
✗Marks-16.5% margin vs $33.32
Templeton fair value$24.97
✗Templeton-33.4% margin vs $33.32
Cash Flow30% pass✓ 4✗ 8▾
7 of 10 flag SOBO's cash flow — Buffett, Lynch, Dreman +4 more
Free Cash Flow Proxy$421.0M
✗BuffettPositive and growing
FCF Positive and Growing$388.0M
✗LynchPositive and growing
Operating Cash Flow$717.0M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=6.41%, ROA=3.87%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)9.7x
✗Dreman< 8x
P/E or FCF YieldP/E=16.1x
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive2/2 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap
✗Ackman>= 4%
Price / FCF per Share
✗Ackman<= 25
Positive Operating Cash Flow frequency3/3 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures
✗Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization
✗OshaughnessyTop 10% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Transportation

SIC Sector: Pipelines

Size: Mid Cap($7.0B)

Revenue: $2.0B-6.3% YoY

Net Income: $433.0M+37.0% YoY

Financial Snapshot

Operating Margin36.0%

Return on Equity16.0%

Debt / Equity--

Current Ratio1.50

EPS (Diluted)$2.07+36.2% 1y

Shares Retired−0.1% / −0.3% 2y

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Shareholder Return

Fiscal 2025

Issued 0.1% of shares last year, 0.3% issued over two.

Buybacks: —
Dividends: $416.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY24

−28.6% = −28.5% + −0.2%

FY25

36.2% = 37.0% + −0.6%

Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

Metric	FY 2025 Sources 40-F · 2026-03-16	FY 2024 Sources 40-F · 2025-03-06	FY 2023 Sources 40-F · 2025-03-06	FY 2022 Sources 40-F · 2025-03-06
Market Cap	$7.0Bcurrent	$4.7Best.	$4.8Best.	--
Revenue	$2.0B↓6%	$2.1B↑6%	$2.0B	--
Operating Income	$715.0M↓34%	$1.1B↑2%	$1.1B	--
Net Income	$433.0M↑37%	$316.0M↓29%	$442.0M	--
EPS (Diluted)	$2.07↑36%	$1.52↓29%	$2.13	--
Gross Margin	84.2%↑2%	82.3%	82.5%	—
Operating Margin	36.0%↓30%	51.5%↓4%	53.6%	—
ROE	16.0%↑32%	12.1%↓22%	15.6%	—
Total Debt	--	--	--	--
Shareholders' Equity	$2.7B↑4%	$2.6B↓8%	$2.8B↓62%	$7.5B
Current Ratio	1.50↑20%	1.25↓1%	1.26	—
Debt / Equity	—	—	—	—
Operating Cash Flow	$717.0M↑36%	$529.0M↓32%	$779.0M	--
Free Cash Flow	--	$388.0M↓47%	$732.0M	--

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Transportation

SOBO vs Peers — Financial Grading

Revenue$2.0BBottom 25%

Net Income$433.0MBottom 25%

ROE16.0%Bottom 25%

D/E—

Op. Margin36.0%Median

Curr. Ratio1.50Top 25%

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
UNION PACIFIC CORPUNP	$179.7B	$302.44	$24.5B	$7.1B	38.7%	1.72	40.2%	0.91	2/9	4/9	4/7	0/3	F-Score 7	3/11
CSX CORPCSX	$95.9B	$52.05	$14.1B	$2.9B	22.0%	1.43	32.1%	0.81	2/9	4/9	3/7	0/3	F-Score 5	3/11
ROYAL CARIBBEAN CRUISES LTDRCL	$86.5B	$323.27	$17.9B	$4.3B	42.5%	2.13	27.4%	0.18	1/9	1/9	1/7	0/3	F-Score 7	3/11
CANADIAN NATIONAL RAILWAY COCNI	$76.3B	$127.18	—	—	—	—	—	—	—	—	—	—	—	—
NORFOLK SOUTHERN CORPNSC	$73.6B	$327.88	$12.2B	$2.9B	18.5%	1.10	35.8%	0.85	3/9	6/9	3/7	0/3	F-Score 6	5/11
MPLX LPMPLX	$58.0B	$57.25	$13.0B	$5.0B	34.6%	1.79	45.7%	1.23	2/9	4/9	4/7	1/3	F-Score 6	8/11
Carnival Corp Ltd.CCL	$39.3B	$29.23	$26.6B	$2.8B	22.5%	2.17	16.8%	0.32	1/9	1/9	2/7	0/3	F-Score 7	4/11
OLD DOMINION FREIGHT LINE, INC.ODFL	$36.0B	$174.54	$5.5B	$1.0B	23.7%	0.01	24.8%	1.44	3/9	7/9	5/7	1/3	F-Score 6	5/11