South BowSOBO +2.12%15 ROE % is 11.47% as of Mar. 2026, which is 26% below its 10-year median of 15.56. GuruFocus rates SOBO with a GF Score™ of 15/100. The stock has 12 warning signs investors should review. Among 957 Oil & Gas companies, South Bow ranks better than 77.85% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. South Bow's annualized net income for the quarter that ended in Mar. 2026 was $308 Mil. South Bow's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,685 Mil. Therefore, South Bow's annualized ROE % for the quarter that ended in Mar. 2026 was 11.47%.
The historical rank and industry rank for South Bow's ROE % or its related term are showing as below:
SOBO'
s ROE % Range Over the Past 10 Years
Min: 11.96 Med: 15.56 Max: 16.02
Current: 15.82
During the past 3 years, South Bow's highest ROE % was 16.02%. The lowest was 11.96%. And the median was 15.56%.
SOBO's ROE % is ranked better than 77.85% of 957
companies
in the Oil & Gas industry
Industry Median: 5.71
vs SOBO: 15.82
South Bow (NYSE:SOBO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
South Bow ROE % Related Terms
South Bow ROE % Historical Data
* Premium members only.
The historical data trend for South Bow's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South Bow's ROE % distribution charts can be found below:
* The bar in red indicates where South Bow's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
South Bow (SOBO) has a ROE % of 11.47% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on South Bow and its competitors. This is 26% below median its historical median of 15.56. Over the past decade, South Bow's ROE % has ranged from 11.96 to 16.02. According to the industry distribution chart, South Bow ranks #212 out of 957 companies in the Oil & Gas industry, placing it in the top 22.2%.
Is South Bow's ROE % too high?
South Bow's current ROE % of 11.47% is 26% below median its 10-year median of 15.56. Over the past 10 years, this metric has ranged from a low of 11.96 to a high of 16.02. The Oil & Gas industry median ROE % is 5.71. South Bow's value of 11.47% is 100.9% above this industry median. Based on the distribution chart, South Bow ranks #212 out of 957 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 ROE % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, South Bow ranks #212 out of 957 companies for ROE %. This places South Bow in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 5.71. South Bow's value of 11.47% is 100.9% above this benchmark. Historically, South Bow's own ROE % has ranged from 11.96 to 16.02 over the past decade. While the company's 10-year median is 15.56 vs. the industry median of 5.71, 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 ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.71, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. South Bow's current ROE % of 11.47% is 100.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on South Bow and its competitors. For the Oil & Gas industry, the median ROE % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Bow's current ROE % is 11.47%, which is 26% below median its own 10-year median of 15.56. 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 ROE % of 11.47%. The current ROE % is 11.47%, which is 26% below median its 10-year median of 15.56 and 100.9% above the Oil & Gas industry median of 5.71. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For South Bow (SOBO), the current ROE % is 11.47% 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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