SOBO
South Bow Corporation
SOBO's fundamentals are mixed: it turned 34% of its revenue into free cash flow, while revenue grew 6.6%. At 19x earnings, it's trading in line with its usual 18x. Analysts expect earnings growth.
SOBO Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Weak |
SOBO's profitability and cash flow are currently strong, and its revenue is stable, but its balance sheet is weak.
SOBO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 17x | $29.20 | -12% |
| Fair | 18x | $31.30 | -6% |
| Forward | 18x | $33.29 | — |
| Current | 19x | $33.29 | — |
| Expensive | 22x | $37.58 | +13% |
Historical ranges are pointers, not guarantees.
SOBO's PE is in its expensive range at 19x. If earnings grow as analysts expect, today's price would be 18x next year's earnings, in its fair range.
SOBO Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Stable | |
| Improving | |
| Limited | |
| Moderate |
Analysts expect SOBO's earnings to grow and its profitability to improve, with its revenue holding steady.
SOBO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $1.87 | +8.6% |
| Q2 2026 | $1.72 | +21% |
| Q1 2026 | $1.54 | +22% |
| Q4 2025 | $1.59 | +30% |
| Q3 2025 | $1.67 | +23% |
| Q2 2025 | $1.42 | -2.7% |
| Q1 2025 | $1.26 | -32% |
| Q4 2024 | $1.22 | -36% |
SOBO earned $1.72 per share over the past year, up 21% from the year before.
SOBO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $546M | +4.2% |
| Q1 2026 | $491M | -1.4% |
| Q4 2025 | $503M | +5.5% |
| Q3 2025 | $461M | +22% |
| Q2 2025 | $524M | +35% |
| Q1 2025 | $498M | +31% |
| Q4 2024 | $476.9M | 0% |
| Q3 2024 | $378.8M | +2.4% |
SOBO's revenue is growing: $546M last quarter, up 4.2% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 44% | +8.3 points |
| Q1 2026 | 33% | -3.1 points |
| Q4 2025 | 41% | +8.4 points |
| Q3 2025 | 32% | -1.9 points |
| Q2 2025 | 36% | +1.9 points |
| Q1 2025 | 36% | -4.9 points |
| Q4 2024 | 32% | -6.2 points |
| Q3 2024 | 34% | +0.9 points |
SOBO's operating margin was 44% last quarter, up 8.3 points from the same quarter a year ago.
SOBO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $237M | +45% |
| Q1 2026 | $156.8M | +69% |
| Q4 2025 | $253.5M | +$310.1M |
| Q3 2025 | $34.8M | -83% |
| Q2 2025 | $163.9M | +140% |
| Q1 2025 | $92.7M | -2.8% |
| Q4 2024 | -$56.6M | -127% |
| Q3 2024 | $204M | +3.8% |
SOBO generated $682M in free cash flow over the past year, up 69% from the year before.
SOBO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.1% | +300K shares |
| 1 year | 0% | -- |
| 3 years | +0.6% | +1.2M shares |
SOBO has 209M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
| Q3 2024 | — |
SOBO hasn't bought back shares in the past year.
SOBO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | 4.5x | High |
| Q1 2026 | 4.9x | High |
| Q4 2025 | 4.8x | High |
| Q3 2025 | 3.8x | Elevated |
| Q2 2025 | 5.2x | High |
| Q1 2025 | 5.1x | High |
| Q4 2024 | 4.8x | High |
| Q3 2024 | 4.2x | High |
SOBO's net debt is about 4.5 years of its operating earnings (EBITDA), down from 5.2 years a year ago.
SOBO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 45.9 | Neutral |
| Stochastic | 27.1 | Neutral |
SOBO's weekly RSI is 46 (neutral) and its Stochastic is 27 (neutral).
SOBO PE vs Energy Sector
| Metric | SOBO | Sector median | Relative |
|---|---|---|---|
| PE | 19x | 13x | 47% above |
| PE % | 66 | 35 | 31 pts above |
SOBO is trading at 19x earnings, a 47% premium to the Energy sector's median of 13x.
SOBO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $33.9 | 1.9% below |
| 20 week MA | $35.6 | 6.5% below |
| 50 week MA | $33.5 | 0.7% below |
| 100 week MA | $29.7 | 12% above |
SOBO has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 12% above its 100-week average.
SOBO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2024 | $22.1 | $23.5 | +6.4% |
| 2025 | $23.5 | $28.3 | +21% |
| 2026 YTD | $28.3 | $33.3 | +17% |
SOBO has finished every year since 2024 higher, and it's up 17% so far in 2026.