Software Circle (LSE:SFT) EBIT: £-2.48 Mil (TTM As of Sep. 2025)


LSE:SFT Software Circle PLC LSE:SFT
39 GF Score
Price £0.16
GF Value £0.12
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Software Circle EBIT?

Software Circle LSE:SFT -1.54% 39 EBIT is £-2.48 Mil as of Sep. 2025. GuruFocus rates LSE:SFT with a GF Score™ of 39/100 and a GF Value™ of £0.12 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Software Circle's earnings before interest and taxes (EBIT) for the six months ended in Sep. 2025 was £-1.02 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2025 was £-2.48 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Software Circle's annualized ROC % for the quarter that ended in Sep. 2025 was -3.06%. Software Circle's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was -282.70%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Software Circle's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was -3.57%.

Software Circle  (LSE:SFT) EBIT Explanation

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

Software Circle's annualized ROC % for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=-1.482 * ( 1 - 24.58% )/( (33.644 + 39.447)/ 2 )
=-1.1177244/36.5455
=-3.06 %

where

Invested Capital(Q: Mar. 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))
=38.099 - 0.504 - ( 8.566 - max(0, 6.522 - 10.473+8.566))
=33.644

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))
=38.615 - 0.486 - ( 4.798 - max(0, 8.412 - 7.094+4.798))
=39.447

Note: The Operating Income data used here is two times the semi-annual (Sep. 2025) data.

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

Software Circle's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2025  Q: Sep. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-2.034/( ( (0.764 + max(-2.139, 0)) + (0.675 + max(-2.322, 0)) )/ 2 )
=-2.034/( ( 0.764 + 0.675 )/ 2 )
=-2.034/0.7195
=-282.70 %

where Working Capital is:

Working Capital(Q: Mar. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.309 + 0.026 + 0.356) - (0.504 + 0 + 3.326)
=-2.139

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.491 + 0.019 + 0.395) - (0.486 + 0 + 3.741)
=-2.322

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2025) EBIT data.

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

Software Circle's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2025 )
=-2.482/69.483
=-3.57 %

* 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.

Software Circle EBIT Related Terms

Software Circle EBIT Historical Data

* Premium members only.

The historical data trend for Software Circle'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.

Software Circle EBIT Chart

Software Circle Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.93 -0.77 -1.82 -2.19 0.21

Software Circle Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
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 -0.91 -1.28 1.68 -1.47 -1.02

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

For the Specialty Business Services subindustry, Software Circle'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.

Software Circle EV-to-EBIT vs Business Services Industry

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

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


LSE:SFT
39GF Score
Software Circle PLC LSE:SFT
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Software Circle 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 Sep. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-2.48 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 £-2.48 Mil mean?
Software Circle (LSE:SFT) has a EBIT of £-2.48 Mil as of Sep. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Software Circle.
Is Software Circle's EBIT too high?
Software Circle's current EBIT is £-2.48 Mil. Overall, Software Circle has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Software Circle's EBIT compare to CTAS and CPRT?
Software Circle's EBIT of £-2.48 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 Software Circle. Software Circle's current EBIT is £-2.48 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Software Circle stock overvalued right now?
Based on GuruFocus' analysis, Software Circle (LSE:SFT) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.12, compared to a current price of £0.16 — trading 33.3% above its estimated fair value. The current EBIT is £-2.48 Mil. Software Circle's overall GF Score™ is 39/100 with 4 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 Software Circle (LSE:SFT), the current EBIT is £-2.48 Mil as of Sep. 2025. 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 Software Circle (LSE:SFT) Overvalued in 2026?

Based on GuruFocus' analysis, Software Circle stock appears to be overvalued. The current stock price of £0.16 is trading 33.3% above its estimated GF Value™ of £0.12. GuruFocus considers Software Circle to be Significantly Overvalued.

Key valuation signals for LSE:SFT:

  • EBIT: £-2.48 Mil
  • GF Value™: £0.12 vs. price of £0.16 (33.3% above fair value)
  • GF Score™: 39/100 with 4 warning signs

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

Software Circle Business Description

Address 98 King Street, C/o Gateley Legal, Ship Canal House, Manchester, GBR, M2 4WU
Software Circle PLC is a UK-based company that is an acquirer of great vertical market software businesses. The company operates complex logistics, a SaaS platform, and brands that sell print and web to business customers. The segmental analysis by nature of service includes license fees, company-owned studio revenue, brand partner print, and online sales plus trade print. Some of its brands include Nettl, watermark, and Topfloor. Geographically it has its business across the region of the UK and Ireland, Europe, and others of which the UK and Ireland's region accounts for a majority of the revenue.
39GF Score

Get the complete analysis for LSE:SFT

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

£0.16
Price
£0.12
GF Value