South BowSOBO +2.12%15 Interest Coverage is 1.90 as of Mar. 2026, which is 12% below its 10-year median of 2.16. GuruFocus rates SOBO with a GF Score™ of 15/100. The stock has 12 warning signs investors should review. Among 728 Oil & Gas companies, South Bow ranks worse than 77.47% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. South Bow's
Operating Income
for the
three
months ended in Mar. 2026 was $160 Mil. South Bow's Interest Expense for the
three
months ended in Mar. 2026 was $-84 Mil.
South Bow's interest coverage for the quarter that ended in Mar. 2026 was 1.90.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. South Bow Corp interest coverage is 2.1, which is low.
The historical rank and industry rank for South Bow's Interest Coverage or its related term are showing as below:
SOBO'
s Interest Coverage Range Over the Past 10 Years
Min: 1.92 Med: 2.16 Max: 3.18
Current: 2.1
SOBO's Interest Coverage is ranked worse than 77.47% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs SOBO: 2.10
South Bow (NYSE:SOBO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
South Bow Interest Coverage Related Terms
South Bow Interest Coverage Historical Data
* Premium members only.
The historical data trend for South Bow's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SOBO vs WMB, EPD, KMI: Interest Coverage Comparison
For the Oil & Gas Midstream subindustry, South Bow's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's Interest Coverage distribution charts can be found below:
* The bar in red indicates where South Bow's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
South Bow (SOBO) has a Interest Coverage of 1.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on South Bow and its competitors. This is 12% below median its historical median of 2.16. Over the past decade, South Bow's Interest Coverage has ranged from 1.92 to 3.18. According to the industry distribution chart, South Bow ranks #564 out of 728 companies in the Oil & Gas industry, placing it in the top 77.5%.
Is South Bow's Interest Coverage too high?
South Bow's current Interest Coverage of 1.90 is 12% below median its 10-year median of 2.16. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 3.18. The Oil & Gas industry median Interest Coverage is 5.84. South Bow's value of 1.90 is 67.5% below this industry median. Based on the distribution chart, South Bow ranks #564 out of 728 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 Interest Coverage compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #564 out of 728 companies for Interest Coverage. This places South Bow in the lower half of its industry. The industry median Interest Coverage is 5.84. South Bow's value of 1.90 is 67.5% below this benchmark. Historically, South Bow's own Interest Coverage has ranged from 1.92 to 3.18 over the past decade. While the company's 10-year median is 2.16 vs. the industry median of 5.84, South Bow has consistently been below 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 Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current Interest Coverage of 1.90 is 67.5% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on South Bow and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current Interest Coverage is 1.90, which is 12% below median its own 10-year median of 2.16. 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 Interest Coverage of 1.90. The current Interest Coverage is 1.90, which is 12% below median its 10-year median of 2.16 and 67.5% below the Oil & Gas industry median of 5.84. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For South Bow (SOBO), the current Interest Coverage is 1.90 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.
15GF Score
Get the complete analysis for SOBO
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SOBO has been successfully added to your 
