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Software Circle (LSE:SFT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Software Circle Net Margin % Related Terms
Software Circle Net Margin % Historical Data
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The historical data trend for Software Circle's Net 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: Net Margin % Comparison
For the Specialty Business Services subindustry, Software Circle's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's Net Margin % distribution charts can be found below:
* The bar in red indicates where Software Circle's Net 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 Net Margin % of 3.39% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Software Circle and its competitors. According to the industry distribution chart, Software Circle ranks #862 out of 1070 companies in the Business Services industry, placing it in the top 80.6%.
Is Software Circle's Net Margin % too high?
Software Circle's current Net Margin % is 3.39%. The Business Services industry median Net Margin % is 3.93. Software Circle's value of 3.39% is 13.7% below this industry median. Based on the distribution chart, Software Circle ranks #862 out of 1070 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Software Circle's Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #862 out of 1070 companies for Net Margin %. This places Software Circle in the lower half of its industry. The industry median Net Margin % is 3.93. Software Circle's value of 3.39% is 13.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 3.93, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Software Circle's current Net Margin % of 3.39% is 13.7% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Software Circle and its competitors. For the Business Services industry, the median Net Margin % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current Net Margin % is 3.39%. 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 Fairly Valued. The stock's GF Value™ is £0.17, compared to a current price of £0.16 — trading 5.9% below its estimated fair value. The current Net Margin % is 3.39% and 13.7% below the Business Services industry median of 3.93. Software Circle's overall GF Score™ is 39/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current Net Margin % is 3.39% 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 Software Circle (LSE:SFT) Overvalued in 2026?
Based on GuruFocus' analysis, Software Circle stock appears to be undervalued.
The current stock price of £0.16 is trading 5.9% below its estimated GF Value™ of £0.17.
GuruFocus considers Software Circle to be Fairly Valued.
Key valuation signals for LSE:SFT:
Net Margin %: 3.39%
GF Value™: £0.17 vs. price of £0.16 (5.9% below fair value)
Industry Position: 13.7% below the Business Services median (#862 of 1070)
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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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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