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Shearwater Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Shearwater Group PLC shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Shearwater Group has no long-term debt (1).
Shearwater Group's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.00.
As of today, Shearwater Group's Altman Z-Score is -0.28.
(1) Note: An indication of "no long-term 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.
Shearwater Group (LSE:SWG) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Shearwater Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.
Shearwater Group Financial Strength Related Terms
LSE:SWG vs MSFT, ORCL, PLTR: Financial Strength Comparison
For the Software - Infrastructure subindustry, Shearwater Group's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Shearwater Group Financial Strength vs Software Industry
For the Software industry and Technology sector, Shearwater Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Shearwater Group's Financial Strength 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:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Shearwater Group PLC has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Shearwater Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Shearwater Group has a Z-score of -0.28, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.28 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Shearwater Group (LSE:SWG) has a Financial Strength of 9 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Shearwater Group and its competitors. This is 29% above median its historical median of 7.00. Over the past decade, Shearwater Group's Financial Strength has ranged from 7.00 to 9.00.
Is Shearwater Group's Financial Strength too high?
Shearwater Group's current Financial Strength of 9 is 29% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 9.00. Overall, Shearwater Group has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Shearwater Group's Financial Strength compare to MSFT and ORCL?
Shearwater Group's Financial Strength of 9 can be compared against companies in the Software industry. Historically, Shearwater Group's own Financial Strength has ranged from 7.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Shearwater Group and its competitors. Shearwater Group's current Financial Strength is 9, which is 29% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shearwater Group stock overvalued right now?
Shearwater Group (LSE:SWG) has a current Financial Strength of 9. The current Financial Strength is 9, which is 29% above median its 10-year median of 7.00. Shearwater Group's overall GF Score™ is 41/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Shearwater Group (LSE:SWG), the current Financial Strength is 9 as of Dec. 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.
Shearwater Group PLC is a UK-based company focused on providing digital resilience solutions. The company delivers cybersecurity, network monitoring technologies, managed security services, Data Loss Prevention, Identity & Access Security, IT Solutions, Penetration Testing & Red Teaming, and other services. Its operating segment includes software and services. The company generates maximum revenue from the Services segment. Its geographical segments include the United Kingdom(UK) and Europe(excluding the UK), North America, and the Rest of the world, of which the majority of the revenue is derived from the UK.
41GF Score
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