SOBOSouth Bow Corporation
Is it safe?
Nothing alarming, nothing pristine: heavy debt (BB) and typical volatility.
Moderately leveraged. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -19% · now 14% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can SOBO take a bad year?
South Bow Corporation carries $5.26B of net debt at 8.10× EBITDA: a heavy load to carry through a bad year.
Net debt · as at FY2025 · over four years of earnings before interest, tax and depreciation, heavy
- Net debt / EBITDA
- 8.10×
Net debt / EBITDA
- Interest cover
- 1.21×
Interest cover · operating profit barely covers the interest bill
- Annualised volatility
- 28%
Annualised volatility · about as steady as the market itself
Details›
- Total debtFY2025
- $5.81B
- Cash and short-term investments
- $549M
- Net debt
- $5.26B
- EBITDA, trailing twelve months
- $649M
- Operating profit, trailing twelve months
- $402M
- Debt / equity
- 2.14×
- Total debt / EBITDA
- 8.95×
- Annualised volatilitytwo years of daily moves
- 28%
- Worst drawdown on file
- −19%
- Below its 52-week high
- 14%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
Oil & Gas Midstream
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