Software CircleLSE:SFT 39 Gross Margin % is 76.30% as of Sep. 2025, which is 38% above its 10-year median of 55.26. 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 1,007 Business Services companies, Software Circle ranks better than 85.8% on this metric.
The historical rank and industry rank for Software Circle's Gross Margin % or its related term are showing as below:
LSE:SFT'
s Gross Margin % Range Over the Past 10 Years
Min: 39.69 Med: 55.26 Max: 75.35
Current: 75.35
During the past 13 years, the highestGross Margin % of Software Circle was 75.35%. The lowest was 39.69%. And the median was 55.26%.
LSE:SFT's Gross Margin % is ranked better than 85.8% of 1007
companies
in the Business Services industry
Industry Median: 34.5
vs LSE:SFT: 75.35
Software Circle had a gross margin of 76.30% for the quarter that ended in Sep. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Software Circle was 8.20% per year.
Software Circle (LSE:SFT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Software Circle had a gross margin of 76.30% for the quarter that ended in Sep. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Software Circle Gross Margin % Related Terms
Software Circle Gross Margin % Historical Data
* Premium members only.
The historical data trend for Software Circle's Gross 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, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, Software Circle's Gross Margin %, along with its competitors' market caps and Gross 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 Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Software Circle's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Software Circle (LSE:SFT) has a Gross Margin % of 76.30% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Software Circle and its competitors. This is 38% above median its historical median of 55.26. Over the past decade, Software Circle's Gross Margin % has ranged from 39.69 to 75.35. According to the industry distribution chart, Software Circle ranks #143 out of 1007 companies in the Business Services industry, placing it in the top 14.2%.
Is Software Circle's Gross Margin % too high?
Software Circle's current Gross Margin % of 76.30% is 38% above median its 10-year median of 55.26. Over the past 10 years, this metric has ranged from a low of 39.69 to a high of 75.35. The Business Services industry median Gross Margin % is 34.50. Software Circle's value of 76.30% is 121.2% above this industry median. Based on the distribution chart, Software Circle ranks #143 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. 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 Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #143 out of 1007 companies for Gross Margin %. This places Software Circle in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.50. Software Circle's value of 76.30% is 121.2% above this benchmark. Historically, Software Circle's own Gross Margin % has ranged from 39.69 to 75.35 over the past decade. While the company's 10-year median is 55.26 vs. the industry median of 34.50, 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 Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Software Circle's current Gross Margin % of 76.30% is 121.2% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Software Circle and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current Gross Margin % is 76.30%, which is 38% above median its own 10-year median of 55.26. 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 31.3% above its estimated fair value. The current Gross Margin % is 76.30%, which is 38% above median its 10-year median of 55.26 and 121.2% above the Business Services industry median of 34.50. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current Gross Margin % is 76.30% 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 31.3% above its estimated GF Value™ of £0.12.
GuruFocus considers Software Circle to be Significantly Overvalued.
Key valuation signals for LSE:SFT:
Gross Margin %: 76.30% (38% above median its 10-year median of 55.26)
GF Value™: £0.12 vs. price of £0.16 (31.3% above fair value)
Industry Position: 121.2% above the Business Services median (#143 of 1007)
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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