Software CircleLSE:SFT -1.56%39 Interest Coverage is 0 (At Loss) 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. Among 812 Business Services companies, Software Circle ranks worse than 123152.59% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Software Circle's
Operating Income
for the
six
months ended in Sep. 2025 was £-0.74 Mil. Software Circle's Interest Expense for the
six
months ended in Sep. 2025 was £-0.60 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Software Circle's Interest Coverage or its related term are showing as below:
LSE:SFT's Interest Coverage is not ranked *
in the Business Services industry.
Industry Median: 12.98 * Ranked among companies with meaningful Interest Coverage only.
Software Circle (LSE:SFT) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Software Circle Interest Coverage Related Terms
Software Circle Interest Coverage Historical Data
* Premium members only.
The historical data trend for Software Circle's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LSE:SFT vs CTAS, CPRT, ULS: Interest Coverage Comparison
For the Specialty Business Services subindustry, Software Circle's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Software Circle's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Software Circle did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Software Circle (LSE:SFT) has a Interest Coverage of 0 (At Loss) as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Software Circle and its competitors. According to the industry distribution chart, Software Circle ranks #999999 out of 812 companies in the Business Services industry.
Is Software Circle's Interest Coverage too high?
Software Circle's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Software Circle ranks #999999 out of 812 companies in the Business Services industry, which is in the bottom quartile 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 Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #999999 out of 812 companies for Interest Coverage. This places Software Circle in the lower half of its industry. The industry median Interest Coverage is 12.98. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Software Circle and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current Interest Coverage is 0 (At Loss). 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 Interest Coverage is 0 (At Loss). 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current Interest Coverage is 0 (At Loss) 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:
Interest Coverage: 0 (At Loss)
GF Value™: £0.12 vs. price of £0.16 (31.3% above fair value)
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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