South BowSOBO +2.12%15 ROA % 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 12 warning signs investors should review. Among 1,025 Oil & Gas companies, South Bow ranks better than 62.15% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. South Bow's annualizedNet Income for the quarter that ended in Mar. 2026 was $308 Mil.
South Bow's average Total Assets over the quarter that ended in Mar. 2026 was $11,217 Mil. Therefore, South Bow's annualized ROA % for the quarter that ended in Mar. 2026 was 2.75%.
The historical rank and industry rank for South Bow's ROA % or its related term are showing as below:
SOBO'
s ROA % 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 ROA % was 3.78%. The lowest was 2.79%. And the median was 3.67%.
SOBO's ROA % is ranked better than 62.15% of 1025
companies
in the Oil & Gas industry
Industry Median: 1.89
vs SOBO: 3.70
South Bow (NYSE:SOBO) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
South Bow ROA % Related Terms
South Bow ROA % Historical Data
* Premium members only.
The historical data trend for South Bow's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's ROA % distribution charts can be found below:
* The bar in red indicates where South Bow's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
South Bow (SOBO) has a ROA % of 2.75% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total 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 ROA % has ranged from 2.79 to 3.78. According to the industry distribution chart, South Bow ranks #388 out of 1025 companies in the Oil & Gas industry, placing it in the top 37.9%.
Is South Bow's ROA % too high?
South Bow's current ROA % 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 ROA % is 1.89. South Bow's value of 2.75% is 45.5% above this industry median. Based on the distribution chart, South Bow ranks #388 out of 1025 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 ROA % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #388 out of 1025 companies for ROA %. This puts South Bow in the upper half of its industry. The industry median ROA % is 1.89. South Bow's value of 2.75% is 45.5% above this benchmark. Historically, South Bow's own ROA % 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 1.89, 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 ROA % for an Oil & Gas company?
The median ROA % among Oil & Gas companies is 1.89, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current ROA % of 2.75% is 45.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on South Bow and its competitors. For the Oil & Gas industry, the median ROA % is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current ROA % 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 ROA % of 2.75%. The current ROA % is 2.75%, which is 25% below median its 10-year median of 3.67 and 45.5% above the Oil & Gas industry median of 1.89. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For South Bow (SOBO), the current ROA % 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.
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