Is South Bow Corp (SOBO) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 82.0% / 30% | 5.7% / 30% | 18.0% / 30% | 0.57% / 5% | ✗ NOT HALAL |
| DJIM | 82.0% / 33% | 5.7% / 33% | 18.0% / 33% | 0.57% / 5% | ✗ NOT HALAL |
| MSCI | 50.5% / 33% | 3.5% / 33% | 11.1% / 33% | 0.57% / 5% | ✗ NOT HALAL |
| S&P | 82.0% / 33% | 5.7% / 33% | 18.0% / 33% | 0.57% / 5% | ✗ NOT HALAL |
| FTSE | 50.5% / 33% | 3.5% / 33% | 11.1% / 50% | 0.57% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 49.0% | |
| Operating Margin | 40.6% | |
| Net Margin | 21.8% | |
| Return on Equity (ROE) | 16.3% | |
| Return on Assets (ROA) | 4.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $529M |
| Free Cash Flow | $407M |
| Total Debt | $5.7B |
| Debt-to-Equity | 213.9 |
| Current Ratio | 1.5 |
| Total Assets | $11.3B |
Price & Trading
| Last Close | $34.00 |
| 50-Day MA | $30.92 |
| 200-Day MA | $28.03 |
| Avg Volume | 1.0M |
|
52-Week Range
$21.16
| |
About South Bow Corp (SOBO)
South Bow Corporation operates as an energy infrastructure company. It operates through three segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other. The Keystone Pipeline System segment consists of the company's main liquids pipeline network, which transports crude oil from Hardisty, Alberta, to key U.S. markets including Wood River, Patoka, Illinois, Cushing, Oklahoma, and the Gulf Coast. The Marketing segment provides crude oil marketing services, including transportation, storage, and logistics, and engages in physical crude oil trading and hedging activities. The Intra-Alberta & Other segment comprises pipelines such as the Grand Rapids Pipeline and White Spruce Pipeline, offering crude oil transportation from Alberta's oil sands to refining and market regions, and includes corporate and financing activities. The company also operates 4,900 kilometres of crude oil pipeline infrastructure connecting Alberta crude oil supplies to the U.S. refining markets in the U.S. Midwest and Gulf Coast. In addition, the company offers ancillary services, including storage at terminals. The company was incorporated in 2023 and is based in Calgary, Canada.
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Frequently Asked Questions
Is South Bow Corp (SOBO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), South Bow Corp is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is South Bow Corp's debt ratio?
South Bow Corp's debt ratio is 82.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 50.5%.
What are South Bow Corp's key financial metrics?
South Bow Corp has a market capitalization of $7.2B, trailing P/E ratio of 16.5, and revenue of $2.1B. The company maintains a gross margin of 49.0% and a net margin of 21.8%. Return on equity stands at 16.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.