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Software CircleLSE:SFT 39 3-Year ROIIC % is -0.80 as of Mar. 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 1,011 Business Services companies, Software Circle ranks worse than 64.69% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Software Circle's 3-Year ROIIC % for the quarter that ended in Mar. 2025 was -0.80%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Software Circle's 3-Year ROIIC % or its related term are showing as below:
LSE:SFT's 3-Year ROIIC % is ranked worse than 64.69% of 1011
companies
in the Business Services industry
Industry Median: 5.08
vs LSE:SFT: -0.80
Software Circle (LSE:SFT) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Software Circle 3-Year ROIIC % Related Terms
Software Circle 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Software Circle's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Specialty Business Services subindustry, Software Circle's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Software Circle's 3-Year ROIIC % falls into.
Software Circle's 3-Year ROIIC % for the quarter that ended in Mar. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -0.5878697 (Mar. 2025) - -0.389 (Mar. 2022) )
/
( 33.644 (Mar. 2025) - 8.783 (Mar. 2022) )
=
-0.1988697
/
24.861
=
-0.80%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Software Circle (LSE:SFT) has a 3-Year ROIIC % of -0.80 as of Mar. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Software Circle and its competitors. According to the industry distribution chart, Software Circle ranks #654 out of 1011 companies in the Business Services industry, placing it in the top 64.7%.
Is Software Circle's 3-Year ROIIC % too high?
Software Circle's current 3-Year ROIIC % is -0.80. Based on the distribution chart, Software Circle ranks #654 out of 1011 companies in the Business Services industry, which is below the industry midpoint. 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 3-Year ROIIC % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #654 out of 1011 companies for 3-Year ROIIC %. This places Software Circle in the lower half of its industry. The industry median 3-Year ROIIC % is 5.08. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Business Services company?
The median 3-Year ROIIC % among Business Services companies is 5.08, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Software Circle and its competitors. For the Business Services industry, the median 3-Year ROIIC % is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current 3-Year ROIIC % is -0.80. 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 3-Year ROIIC % is -0.80. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current 3-Year ROIIC % is -0.80 as of Mar. 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:
3-Year ROIIC %: -0.80
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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