Loading…
Canadian liquids pipeline company spun off from TC Energy, owning the Keystone Pipeline system that moves crude oil from Canada to US refineries.
Canadian liquids pipeline company spun off from TC Energy, owning the Keystone Pipeline system that moves crude oil from Canada to US refineries.
Under long-term take-or-pay contracts, shippers pay for pipeline capacity whether or not they fill it, so income comes from fixed per-barrel fees rather than the oil price. Keystone carries most of that income, with the terminals around Hardisty, Alberta, adding storage and marketing fees.
In one line: Canada's dedicated liquids-pipeline peer to Plains All American.
Moat: wide (regulatory licence, installed base). Owns the irreplaceable, long-haul Keystone pipeline corridor with long-term take-or-pay shipper contracts.
Headquarters: Calgary, Canada · Founded: 2024 · Employees: 536
Size South Bow (SOBO.TO) is a Canada Energy company (Oil & Gas Pipelines) with a market value of $6.54B, the 99th largest of 420 Canada companies the cockpit tracks. Shares closed at C$43.91 on 6 Nov 2026.
Performance Over six months the shares fell 8.4%, against -8.4% for the median peer and +5.2% for the Canada market (cap-weighted) — 6th highest of 12 in its peer set.
Growth Revenue fell 25.8% over the last twelve months (peer median +10.5%); the operating margin is 23.9% (peer median 15.4%).
Valuation It trades at 16.5× forward earnings against a peer median of 14.3× (4th most expensive of 11).
Price implies For today's price to make sense, revenue must grow about 14% a year for seven years (Req g). Recent delivered growth is -26%, so the hurdle is +40 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 3.1 points below its cost of capital (6.5% WACC).
Backlog Backlog (remaining performance obligations) was $6.10B at 31 Dec 2025, flat on a year earlier — 3.1 years of trailing revenue. Backlog detail →
Next results Next results expected around 11 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|
| Revenue | C$2.11B | C$2.21B | C$2.90B | C$2.71B |
| Revenue growth | — | -24% | +7% | — |
| Gross profit | C$490M | C$425M | C$1.04B | C$945M |
| EBITDA | C$828M | C$781M | C$1.36B | C$1.27B |
| Net income | C$602M | C$605M | C$433M | C$597M |
| Free cash flow | C$942M | C$753M | C$558M | C$1.00B |
| Capital expenditure | C$218M | C$249M | C$167M | C$49.9M |
| Total debt | C$8.14B | C$7.94B | C$8.25B | C$7.88B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| South Bow SOBO.TO | $6.54B | -8% | -26% | 24% | 16.5× | 13.9% |
| Enbridge ENB.TO | $107B | -10% | +29% | 13% | 22.1× | 12.6% |
| Plains All American Pipeline, L.P PAA | $16.9B | +10% | +9% | 3% | 13.9× | 6.5% |
| TC Energy TRP.TO | $65.1B | -1% | +6% | 46% | 23.0× | 11.4% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | SOBO.TO | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -7.7% | -8.2% | 6th highest of 12 |
| 6-month return | -8.4% | -8.4% | 6th highest of 12 |
| Distance from 52-week high | -20.0% | -20.4% | 6th highest of 12 |
| Revenue growth (TTM) | -25.8% | +10.5% | lowest of 12 |
| Operating margin | 23.9% | 15.4% | 6th highest of 12 |
| Forward P/E | 16.5× | 14.3× | 4th most expensive of 11 |
| Growth the price implies (Req g, 7 yrs) | 13.9% | 3.2% | 2nd most demanding of 10 |
| Growth delivered (Del g) | -25.8% | +12.2% | lowest of 10 |
| Hurdle (Req g minus delivered) | +39.7 pp | -5.4 pp | most demanding of 10 |
| ROIC minus cost of capital | -3.1 pp | -1.3 pp | 2nd lowest of 12 |
| EV / EBITDA | 19.6× | 15.6× | 3rd most expensive of 10 |
| Net debt / EBITDA | 8.6× | 3.6× | most indebted of 12 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| South Bow SOBO.TO | Canada | $6.54B | -8% | -26% | 24% | 16.5× | 13.9% | -25.8% |
| Kinetik KNTK | United States | $7.92B | +3% | +10% | 9% | 25.1× | 33.0% | +63.6% |
| Plains GP Holdings LP PAGP | United States | $5.10B | +11% | +9% | 3% | 14.7× | 2.6% | +13.4% |
| Antero Midstream AM | United States | $8.97B | -9% | +8% | 55% | 15.1× | 2.5% | +5.3% |
| Golar LNG GLNG | United States | $4.40B | -23% | +95% | 46% | n/a | n/a | n/a |
| Keyera KEY.TO | Canada | $10.6B | 0% | 0% | 11% | 17.4× | n/a | n/a |
| DT Midstream DTM | United States | $11.6B | -20% | +13% | 50% | 23.5× | 12.4% | +10.5% |
| Delek Logistics Partners LP DKL | United States | $2.99B | +1% | +30% | 15% | 11.8× | 13.0% | +12.2% |
| Western Midstream Partners, LP WES | United States | $16.5B | -8% | +18% | 39% | 9.9× | 3.2% | +8.6% |
| Plains All American Pipeline, L.P PAA | United States | $16.9B | +10% | +9% | 3% | 13.9× | 6.5% | +13.4% |
| Rockpoint Gas Storage RGSI.TO | Canada | $2.26B | -16% | +15% | 75% | 8.7× | -3.8% | +21.7% |
| NGL Energy Partners LP NGL | United States | $1.87B | -8% | -22% | 12% | 11.9× | 1.2% | -9.6% |
South Bow reported $6.10B of remaining performance obligations at 31 Dec 2025, flat from a year earlier. That is 3.1 years of trailing revenue already under contract.