South BowSOBO +2.12%15 Gross Margin % is 71.89% as of Mar. 2026, which is 2% above its 10-year median of 70.66. GuruFocus rates SOBO with a GF Score™ of 15/100. The stock has 12 warning signs investors should review. Among 867 Oil & Gas companies, South Bow ranks better than 92.96% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. South Bow's Gross Profit for the
three
months ended in Mar. 2026 was $353 Mil. South Bow's Revenue for the
three
months ended in Mar. 2026 was $491 Mil. Therefore, South Bow's Gross Margin % for the quarter that ended in Mar. 2026 was 71.89%.
The historical rank and industry rank for South Bow's Gross Margin % or its related term are showing as below:
SOBO'
s Gross Margin % Range Over the Past 10 Years
Min: 70.32 Med: 70.66 Max: 72.1
Current: 72.1
During the past 3 years, the highestGross Margin % of South Bow was 72.10%. The lowest was 70.32%. And the median was 70.66%.
SOBO's Gross Margin % is ranked better than 92.96% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs SOBO: 72.10
South Bow had a gross margin of 71.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for South Bow was 0.00% per year.
South Bow (NYSE:SOBO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
South Bow had a gross margin of 71.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
South Bow Gross Margin % Related Terms
South Bow Gross Margin % Historical Data
* Premium members only.
The historical data trend for South Bow's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's Gross Margin % distribution charts can be found below:
* The bar in red indicates where South Bow's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
South Bow (SOBO) has a Gross Margin % of 71.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on South Bow and its competitors. This is near median its historical median of 70.66. Over the past decade, South Bow's Gross Margin % has ranged from 70.32 to 72.10. According to the industry distribution chart, South Bow ranks #61 out of 867 companies in the Oil & Gas industry, placing it in the top 7%.
Is South Bow's Gross Margin % too high?
South Bow's current Gross Margin % of 71.89% is near median its 10-year median of 70.66. Over the past 10 years, this metric has ranged from a low of 70.32 to a high of 72.10. The Oil & Gas industry median Gross Margin % is 25.70. South Bow's value of 71.89% is 179.7% above this industry median. Based on the distribution chart, South Bow ranks #61 out of 867 companies in the Oil & Gas industry, which is in the top quartile — a strong position 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 Gross Margin % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #61 out of 867 companies for Gross Margin %. This places South Bow in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. South Bow's value of 71.89% is 179.7% above this benchmark. Historically, South Bow's own Gross Margin % has ranged from 70.32 to 72.10 over the past decade. While the company's 10-year median is 70.66 vs. the industry median of 25.70, 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 Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current Gross Margin % of 71.89% is 179.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on South Bow and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current Gross Margin % is 71.89%, which is near median its own 10-year median of 70.66. 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 Gross Margin % of 71.89%. The current Gross Margin % is 71.89%, which is near median its 10-year median of 70.66 and 179.7% above the Oil & Gas industry median of 25.70. South Bow's overall GF Score™ is 15/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For South Bow (SOBO), the current Gross Margin % is 71.89% 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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