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South BowSOBO +0.52%15 Debt-to-EBITDA is 5.80 as of Mar. 2026, which is 6% above its 10-year median of 5.45. GuruFocus rates SOBO with a GF Score™ of 15/100. The stock has 13 warning signs investors should review. Among 705 Oil & Gas companies, South Bow ranks worse than 82.41% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for South Bow's Debt-to-EBITDA or its related term are showing as below:
SOBO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 5.39 Med: 5.45 Max: 5.82
Current: 5.39
During the past 3 years, the highest Debt-to-EBITDA Ratio of South Bow was 5.82. The lowest was 5.39. And the median was 5.45.
SOBO's Debt-to-EBITDA is ranked worse than 82.41% of 705
companies
in the Oil & Gas industry
Industry Median: 2.01
vs SOBO: 5.39
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
South Bow Debt-to-EBITDA Related Terms
South Bow Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for South Bow's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Midstream subindustry, South Bow's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
South Bow Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where South Bow's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
South Bow (SOBO) has a Debt-to-EBITDA of 5.80 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on South Bow. This is near median its historical median of 5.45. Over the past decade, South Bow's Debt-to-EBITDA has ranged from 5.39 to 5.82. According to the industry distribution chart, South Bow ranks #581 out of 705 companies in the Oil & Gas industry, placing it in the top 82.4%.
Is South Bow's Debt-to-EBITDA too high?
South Bow's current Debt-to-EBITDA of 5.80 is near median its 10-year median of 5.45. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 5.82. The Oil & Gas industry median Debt-to-EBITDA is 2.01. South Bow's value of 5.80 is 188.6% above this industry median. Based on the distribution chart, South Bow ranks #581 out of 705 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, South Bow has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does South Bow's Debt-to-EBITDA compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #581 out of 705 companies for Debt-to-EBITDA. This places South Bow in the lower half of its industry. The industry median Debt-to-EBITDA is 2.01. South Bow's value of 5.80 is 188.6% above this benchmark. Historically, South Bow's own Debt-to-EBITDA has ranged from 5.39 to 5.82 over the past decade. While the company's 10-year median is 5.45 vs. the industry median of 2.01, South Bow has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 2.01, based on 705 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current Debt-to-EBITDA of 5.80 is 188.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on South Bow. For the Oil & Gas industry, the median Debt-to-EBITDA is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current Debt-to-EBITDA is 5.80, which is near median its own 10-year median of 5.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South Bow stock overvalued right now?
South Bow (SOBO) has a current Debt-to-EBITDA of 5.80. The current Debt-to-EBITDA is 5.80, which is near median its 10-year median of 5.45 and 188.6% above the Oil & Gas industry median of 2.01. South Bow's overall GF Score™ is 15/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For South Bow (SOBO), the current Debt-to-EBITDA is 5.80 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
South Bow Corp is a energy infrastructure company. The company is engaged in constructing pipelines system safely transports liquids like crude oil, across Canadian provinces, U.S. states, and Gulf coasts. It has three reportable segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other. It derives maximum revenue from Keystone Pipeline System segment. The company's projects and pipelines include: Blackrod connection project; Grand Rapids Pipeline System; Marketlink Pipeline System; Keystone Pipeline System; Port Neches Link; and White Spruce Pipeline System.
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