Software Circle (LSE:SFT) Operating Income: £0.60 Mil (TTM As of Mar. 2026)

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LSE:SFT Software Circle PLC LSE:SFT
39 GF Score
Price £0.16
GF Value £0.17
Valuation Fairly Valued
! 2 Warning Signs
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What is Software Circle Operating Income?

Software Circle LSE:SFT 39 Operating Income is £0.60 Mil as of Mar. 2026. GuruFocus rates LSE:SFT with a GF Score™ of 39/100 and a GF Value™ of £0.17 (Fairly Valued). The stock has 2 warning signs investors should review.

Software Circle's Operating Income for the six months ended in Mar. 2026 was £1.35 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was £0.60 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Software Circle's Operating Income for the six months ended in Mar. 2026 was £1.35 Mil. Software Circle's Revenue for the six months ended in Mar. 2026 was £12.07 Mil. Therefore, Software Circle's Operating Margin % for the quarter that ended in Mar. 2026 was 11.15%.

Software Circle's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT 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 Mar. 2026 was 4.81%. Software Circle's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 566.14%.


Software Circle  (LSE:SFT) Operating Income Explanation

1. Operating Income or EBIT 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 Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2.69 * ( 1 - 28.25% )/( (39.447 + 40.887)/ 2 )
=1.930075/40.167
=4.81 %

where

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

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

Software Circle's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3.612/( ( (0.675 + max(-2.322, 0)) + (0.601 + max(-2.141, 0)) )/ 2 )
=3.612/( ( 0.675 + 0.601 )/ 2 )
=3.612/0.638
=566.14 %

where Working Capital is:

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

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.118 + 0.019 + 0) - (4.278 + 0 + 0)
=-2.141

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Software Circle's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=1.345/12.067
=11.15 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Software Circle Operating Income Related Terms


Software Circle Operating Income Historical Data

* Premium members only.

The historical data trend for Software Circle's Operating Income 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 Operating Income Chart

Software Circle Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.78 -1.15 -2.09 -1.20 0.60

Software Circle Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Income 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 -1.91 -0.28 -0.92 -0.74 1.35
LSE:SFT
39GF Score
Software Circle PLC LSE:SFT
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Software Circle Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £0.60 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 Operating Income →
What does a Operating Income of £0.60 Mil mean?
Software Circle (LSE:SFT) has a Operating Income of £0.60 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Software Circle and its competitors.
Is Software Circle's Operating Income too high?
Software Circle's current Operating Income is £0.60 Mil. 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 Operating Income compare to CTAS and CPRT?
Software Circle's Operating Income of £0.60 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 Operating Income for a Business Services company?
A good Operating Income depends on the Business Services industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Software Circle and its competitors. Software Circle's current Operating Income is £0.60 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 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 Operating Income is £0.60 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current Operating Income is £0.60 Mil 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:

  • Operating Income: £0.60 Mil
  • GF Value™: £0.17 vs. price of £0.16 (5.9% below fair value)
  • GF Score™: 39/100 with 2 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

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

£0.16
Price
£0.17
GF Value