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 8% 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 · S&P 500 16% · noticeably more jumpy than the market
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
- 8.5%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
The balance sheet
What it owes against what it owns, and how close that comes to trouble.
How far can it fall?
How much the price moves, how deep and how long its falls have run, and what each unit of risk has paid.
Oil & Gas Midstream
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