Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
South BowSOBO +0.91%15 Return-on-Tangible-Asset is 2.75% as of Mar. 2026, which is 25% below its 10-year median of 3.67. GuruFocus rates SOBO with a GF Score™ of 15/100. The stock has 13 warning signs investors should review. Among 1,024 Oil & Gas companies, South Bow ranks better than 60.74% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. South Bow's annualizedNet Income for the quarter that ended in Mar. 2026 was $308 Mil. South Bow's average total tangible assets for the quarter that ended in Mar. 2026 was $11,217 Mil. Therefore, South Bow's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.75%.
The historical rank and industry rank for South Bow's Return-on-Tangible-Asset or its related term are showing as below:
SOBO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.79 Med: 3.67 Max: 3.78
Current: 3.7
During the past 3 years, South Bow's highest Return-on-Tangible-Asset was 3.78%. The lowest was 2.79%. And the median was 3.67%.
SOBO's Return-on-Tangible-Asset is ranked better than 60.74% of 1024
companies
in the Oil & Gas industry
Industry Median: 2.08
vs SOBO: 3.70
South Bow (NYSE:SOBO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
South Bow Return-on-Tangible-Asset Related Terms
South Bow Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for South Bow's Return-on-Tangible-Asset 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.
SOBO vs WMB, EPD, KMI: Return-on-Tangible-Asset Comparison
For the Oil & Gas Midstream subindustry, South Bow's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where South Bow's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.75% mean?
South Bow (SOBO) has a Return-on-Tangible-Asset of 2.75% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on South Bow and its competitors. This is 25% below median its historical median of 3.67. Over the past decade, South Bow's Return-on-Tangible-Asset has ranged from 2.79 to 3.78. According to the industry distribution chart, South Bow ranks #402 out of 1024 companies in the Oil & Gas industry, placing it in the top 39.3%.
Is South Bow's Return-on-Tangible-Asset too high?
South Bow's current Return-on-Tangible-Asset of 2.75% is 25% below median its 10-year median of 3.67. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 3.78. The Oil & Gas industry median Return-on-Tangible-Asset is 2.08. South Bow's value of 2.75% is 32.2% above this industry median. Based on the distribution chart, South Bow ranks #402 out of 1024 companies in the Oil & Gas industry, which is above the industry midpoint. 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 Return-on-Tangible-Asset compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #402 out of 1024 companies for Return-on-Tangible-Asset. This puts South Bow in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.08. South Bow's value of 2.75% is 32.2% above this benchmark. Historically, South Bow's own Return-on-Tangible-Asset has ranged from 2.79 to 3.78 over the past decade. While the company's 10-year median is 3.67 vs. the industry median of 2.08, 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 Return-on-Tangible-Asset for an Oil & Gas company?
The median Return-on-Tangible-Asset among Oil & Gas companies is 2.08, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current Return-on-Tangible-Asset of 2.75% is 32.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on South Bow and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Asset is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current Return-on-Tangible-Asset is 2.75%, which is 25% below median its own 10-year median of 3.67. 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 Return-on-Tangible-Asset of 2.75%. The current Return-on-Tangible-Asset is 2.75%, which is 25% below median its 10-year median of 3.67 and 32.2% above the Oil & Gas industry median of 2.08. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For South Bow (SOBO), the current Return-on-Tangible-Asset is 2.75% 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
Return-on-Tangible-Asset 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 
