Is the business good?
How good a business is SOBO?
South Bow Corporation earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.0%
Return on invested capital · cost of capital 9.0% · 5.0 points below what the capital costs: growth destroys value
- Operating margin
- 20%
Operating margin · Oil & Gas Midstream median 36% · fiscal year to FY2025
- Share count, year on year
- +0.29%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 84%
Gross margin
| Year | Operating margin |
|---|---|
| FY2023 | 54% |
| FY2024 | 51% |
| FY2025 | 20% |
Details›
- Gross marginfiscal year to FY2025
- 84%
- Operating marginfiscal year to FY2025
- 20%
- Net marginfiscal year to FY2025
- 22%
- Revenue, trailing twelve months
- $1.99B
- Net income, trailing twelve months
- $433M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Oil & Gas Midstream
Ranks #19 of 27 by Smart Score