South BowSOBO +4.20%15 ROC (Joel Greenblatt) % is 8.91% as of Mar. 2026, which is 10% below its 10-year median of 9.86. GuruFocus rates SOBO with a GF Score™ of 15/100. The stock has 13 warning signs investors should review. Among 998 Oil & Gas companies, South Bow ranks better than 53.91% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. South Bow's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.91%.
The historical rank and industry rank for South Bow's ROC (Joel Greenblatt) % or its related term are showing as below:
SOBO'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.05 Med: 9.86 Max: 9.9
Current: 9.77
During the past 3 years, South Bow's highest ROC (Joel Greenblatt) % was 9.90%. The lowest was 9.05%. And the median was 9.86%.
SOBO's ROC (Joel Greenblatt) % is ranked better than 53.91% of 998
companies
in the Oil & Gas industry
Industry Median: 8.415
vs SOBO: 9.77
South Bow's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
South Bow (NYSE:SOBO) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for South Bow's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Oil & Gas Midstream subindustry, South Bow's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where South Bow's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 8.91% mean?
South Bow (SOBO) has a ROC (Joel Greenblatt) % of 8.91% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on South Bow and its competitors. This is 10% below median its historical median of 9.86. Over the past decade, South Bow's ROC (Joel Greenblatt) % has ranged from 9.05 to 9.90. According to the industry distribution chart, South Bow ranks #460 out of 998 companies in the Oil & Gas industry, placing it in the top 46.1%.
Is South Bow's ROC (Joel Greenblatt) % too high?
South Bow's current ROC (Joel Greenblatt) % of 8.91% is 10% below median its 10-year median of 9.86. Over the past 10 years, this metric has ranged from a low of 9.05 to a high of 9.90. The Oil & Gas industry median ROC (Joel Greenblatt) % is 8.42. South Bow's value of 8.91% is 5.9% above this industry median. Based on the distribution chart, South Bow ranks #460 out of 998 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 ROC (Joel Greenblatt) % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #460 out of 998 companies for ROC (Joel Greenblatt) %. This puts South Bow in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 8.42. South Bow's value of 8.91% is 5.9% above this benchmark. Historically, South Bow's own ROC (Joel Greenblatt) % has ranged from 9.05 to 9.90 over the past decade. While the company's 10-year median is 9.86 vs. the industry median of 8.42, 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 ROC (Joel Greenblatt) % for an Oil & Gas company?
The median ROC (Joel Greenblatt) % among Oil & Gas companies is 8.42, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current ROC (Joel Greenblatt) % of 8.91% is 5.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on South Bow and its competitors. For the Oil & Gas industry, the median ROC (Joel Greenblatt) % is 8.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current ROC (Joel Greenblatt) % is 8.91%, which is 10% below median its own 10-year median of 9.86. 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 ROC (Joel Greenblatt) % of 8.91%. The current ROC (Joel Greenblatt) % is 8.91%, which is 10% below median its 10-year median of 9.86 and 5.9% above the Oil & Gas industry median of 8.42. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For South Bow (SOBO), the current ROC (Joel Greenblatt) % is 8.91% 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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