Software CircleLSE:SFT -1.54%39 EBITDA Margin % is 19.12% as of Sep. 2025, which is 337% above its 10-year median of 4.38. 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. Among 1,071 Business Services companies, Software Circle ranks better than 60.41% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Software Circle's EBITDA for the
six
months ended in Sep. 2025 was £1.95 Mil. Software Circle's Revenue for the
six
months ended in Sep. 2025 was £10.19 Mil. Therefore, Software Circle's EBITDA margin for the quarter that ended in Sep. 2025 was 19.12%.
Software Circle (LSE:SFT) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Software Circle EBITDA Margin % Related Terms
Software Circle EBITDA Margin % Historical Data
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The historical data trend for Software Circle's EBITDA Margin % 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.
LSE:SFT vs CTAS, CPRT, GPN: EBITDA Margin % Comparison
For the Specialty Business Services subindustry, Software Circle's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Software Circle's EBITDA Margin % 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.
Software Circle (LSE:SFT) has a EBITDA Margin % of 19.12% as of Sep. 2025. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Software Circle and its competitors. This is 337% above median its historical median of 4.38. According to the industry distribution chart, Software Circle ranks #424 out of 1071 companies in the Business Services industry, placing it in the top 39.6%.
Is Software Circle's EBITDA Margin % too high?
Software Circle's current EBITDA Margin % of 19.12% is 337% above median its 10-year median of 4.38. The Business Services industry median EBITDA Margin % is 10.93. Software Circle's value of 19.12% is 74.9% above this industry median. Based on the distribution chart, Software Circle ranks #424 out of 1071 companies in the Business Services industry, which is above the industry midpoint. 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 EBITDA Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #424 out of 1071 companies for EBITDA Margin %. This puts Software Circle in the upper half of its industry. The industry median EBITDA Margin % is 10.93. Software Circle's value of 19.12% is 74.9% above this benchmark. While the company's 10-year median is 4.38 vs. the industry median of 10.93, Software Circle 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 EBITDA Margin % for a Business Services company?
The median EBITDA Margin % among Business Services companies is 10.93, based on 1,071 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Software Circle's current EBITDA Margin % of 19.12% is 74.9% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Software Circle and its competitors. For the Business Services industry, the median EBITDA Margin % is 10.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current EBITDA Margin % is 19.12%, which is 337% above median its own 10-year median of 4.38. 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 EBITDA Margin % is 19.12%, which is 337% above median its 10-year median of 4.38 and 74.9% above the Business Services industry median of 10.93. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current EBITDA Margin % is 19.12% 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:
EBITDA Margin %: 19.12% (337% above median its 10-year median of 4.38)
GF Value™: £0.12 vs. price of £0.16 (33.3% above fair value)
Industry Position: 74.9% above the Business Services median (#424 of 1071)
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 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
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