REACT Group (LSE:REAT) EBIT: £0.38 Mil (TTM As of Mar. 2026)


LSE:REAT REACT Group PLC LSE:REAT
45 GF Score
Price £0.46
GF Value £0.82
Valuation Significantly Undervalued
! 6 Warning Signs
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What is REACT Group EBIT?

REACT Group LSE:REAT 45 EBIT is £0.38 Mil as of Mar. 2026. GuruFocus rates LSE:REAT with a GF Score™ of 45/100 and a GF Value™ of £0.82 (Significantly Undervalued). The stock has 6 warning signs investors should review.

REACT Group's earnings before interest and taxes (EBIT) for the six months ended in Mar. 2026 was £0.06 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was £0.38 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. REACT Group's annualized ROC % for the quarter that ended in Mar. 2026 was 0.58%. REACT Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.42%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. REACT Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2.88%.

REACT Group  (LSE:REAT) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

REACT Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=0.126 * ( 1 - 20.88% )/( (18.483 + 15.606)/ 2 )
=0.0996912/17.0445
=0.58 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=20.657 - 1.6 - ( 1.238 - max(0, 5.997 - 6.571+1.238))
=18.483

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19.556 - 3.597 - ( 1.09 - max(0, 6.116 - 6.469+1.09))
=15.606

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

REACT Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.126/( ( (1.765 + max(0.273, 0)) + (1.744 + max(0.865, 0)) )/ 2 )
=0.126/( ( 2.038 + 2.609 )/ 2 )
=0.126/2.3235
=5.42 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4.683 + 0.004 + 0) - (1.6 + 0 + 2.814)
=0.273

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.376 + 0.003 + 0) - (3.597 + 0 + 0.917)
=0.865

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

REACT Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=0.383/13.302
=2.88 %

* 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.

REACT Group EBIT Related Terms

REACT Group EBIT Historical Data

* Premium members only.

The historical data trend for REACT Group's EBIT 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.

REACT Group EBIT Chart

REACT Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.13 -0.51 0.25 0.29 0.20

REACT Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.31 -0.02 -0.12 0.32 0.06

LSE:REAT vs CTAS, CPRT, GPN: EBIT Comparison

For the Specialty Business Services subindustry, REACT Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.

REACT Group EV-to-EBIT vs Business Services Industry

For the Business Services industry and Industrials sector, REACT Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where REACT Group's EV-to-EBIT falls into.


LSE:REAT
45GF Score
REACT Group PLC LSE:REAT
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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REACT Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £0.38 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £0.38 Mil mean?
REACT Group (LSE:REAT) has a EBIT of £0.38 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on REACT Group.
Is REACT Group's EBIT too high?
REACT Group's current EBIT is £0.38 Mil. Overall, REACT Group has a GF Score™ of 45/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REACT Group's EBIT compare to CTAS and CPRT?
REACT Group's EBIT of £0.38 Mil can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Business Services company?
A good EBIT depends on the Business Services industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on REACT Group. REACT Group's current EBIT is £0.38 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REACT Group stock overvalued right now?
Based on GuruFocus' analysis, REACT Group (LSE:REAT) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.82, compared to a current price of £0.46 — trading 44.5% below its estimated fair value. The current EBIT is £0.38 Mil. REACT Group's overall GF Score™ is 45/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For REACT Group (LSE:REAT), the current EBIT is £0.38 Mil 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.

Is REACT Group (LSE:REAT) Overvalued in 2026?

Based on GuruFocus' analysis, REACT Group stock appears to be undervalued. The current stock price of £0.46 is trading 44.5% below its estimated GF Value™ of £0.82. GuruFocus considers REACT Group to be Significantly Undervalued.

Key valuation signals for LSE:REAT:

  • EBIT: £0.38 Mil
  • GF Value™: £0.82 vs. price of £0.46 (44.5% below fair value)
  • GF Score™: 45/100 with 6 warning signs

No single metric tells the full story. See the LSE:REAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

REACT Group Business Description

Address Holly House, Shady Lane, Birmingham, GBR, B44 9ER
REACT Group PLC is engaged in providing cleaning, decontamination, hygiene services, drainage and plumbing including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customer's property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.
45GF Score

Get the complete analysis for LSE:REAT

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.46
Price
£0.82
GF Value