South Bow Corporation cash flow to debt ratio of 12.62% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

South Bow Corporation's free cash flow has increased 41.55% from $387.46M last year to $548.44M, signaling increasing performance

South Bow Corporation's debt to equity ratio is 2.15, which means that the company's assets are unhealthy financed, signaling financial risk.

South Bow Corporation's debt has decreased relative to shareholder equity from 2.19 last year to 2.15 today, signaling strengthened financials

South Bow Corporation has a net debt to EBITDA ratio of 4.76x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

South Bow Corporation's interest coverage ratio is 1.77, which means that the company struggles to meet interest obligations, signaling financial risk.

South Bow Corporation's profit margin has increased (61.79%) in the last year from 14.91% to 24.12%, signaling increasing performance

South Bow Corporation's short-term assets of $2.01B exceed its short-term liabilities of $1.34B

South Bow Corporation's return on assets of 4.06% is lower than the 5.00% threshold, indicating inefficient asset utilization

South Bow Corporation's return on equity of 17.36%, is higher than 15.00%, indicating good performance

South Bow Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

South Bow Corporation has insufficient public price history to evaluate earnings stability.

South Bow Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

South Bow Corporation has a free cash flow yield of 7.32%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

South Bow Corporation's yearly earnings has increased 39.42% since last year from $316.00M to $440.58M, signaling increasing performance

South Bow Corporation's yearly revenue has decreased 24.02% since last year from $2.12B to $1.61B, signaling decreasing performance

ROIC 5.24% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

South Bow Corporation has insufficient revenue history to calculate 3-year revenue CAGR.

South Bow Corporation has insufficient public price history to evaluate revenue consistency.

South Bow Corporation has insufficient public price history to evaluate ROE consistency.

South Bow Corporation has insufficient data to evaluate this check.

South Bow Corporation has an earnings yield of 6.17%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

South Bow Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

South Bow Corporation has an EV/EBITDA ratio of 11.61x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

South Bow Corporation has insufficient data to evaluate this check.

South Bow Corporation has insufficient diluted EPS history to calculate the PEG ratio.

South Bow Corporation has a price-to-book ratio of 2.81x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

South Bow Corporation has a price-to-sales ratio of 3.91x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue