Software CircleLSE:SFT +0.32%39 Altman Z-Score is 2.41 as of Jul. 01, 2026, which is 65% above its 10-year median of 1.46. 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 1,060 Business Services companies, Software Circle ranks worse than 60.09% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.4 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Software Circle has a Altman Z-Score of 2.41, indicating it is in Grey Zones. This implies that Software Circle is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Software Circle's Altman Z-Score or its related term are showing as below:
LSE:SFT'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.02 Med: 1.46 Max: 4.34
Current: 2.4
During the past 13 years, Software Circle's highest Altman Z-Score was 4.34. The lowest was -0.02. And the median was 1.46.
Software Circle (LSE:SFT) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Software Circle Altman Z-Score Related Terms
Software Circle Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Software Circle's Altman Z-Score 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: Altman Z-Score Comparison
For the Specialty Business Services subindustry, Software Circle's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Software Circle's Altman Z-Score falls into.
Altman 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.
Software Circle's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.1037
+
1.4
*
-0.3078
+
3.3
*
0.0056
+
0.6
*
3.6895
+
1.0
*
0.4796
=
2.41
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Software Circle (LSE:SFT) has a Altman Z-Score of 2.41 as of Jul. 01, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Software Circle and its competitors. This is 65% above median its historical median of 1.46. According to the industry distribution chart, Software Circle ranks #637 out of 1060 companies in the Business Services industry, placing it in the top 60.1%.
Is Software Circle's Altman Z-Score too high?
Software Circle's current Altman Z-Score of 2.41 is 65% above median its 10-year median of 1.46. The Business Services industry median Altman Z-Score is 2.96. Software Circle's value of 2.41 is 18.4% below this industry median. Based on the distribution chart, Software Circle ranks #637 out of 1060 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 Altman Z-Score compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Software Circle ranks #637 out of 1060 companies for Altman Z-Score. This places Software Circle in the lower half of its industry. The industry median Altman Z-Score is 2.96. Software Circle's value of 2.41 is 18.4% below this benchmark. While the company's 10-year median is 1.46 vs. the industry median of 2.96, Software Circle has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Business Services company?
The median Altman Z-Score among Business Services companies is 2.96, based on 1,060 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Software Circle's current Altman Z-Score of 2.41 is 18.4% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Software Circle and its competitors. For the Business Services industry, the median Altman Z-Score is 2.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current Altman Z-Score is 2.41, which is 65% above median its own 10-year median of 1.46. 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 31.7% above its estimated fair value. The current Altman Z-Score is 2.41, which is 65% above median its 10-year median of 1.46 and 18.4% below the Business Services industry median of 2.96. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Software Circle (LSE:SFT), the current Altman Z-Score is 2.41 as of Jul. 01, 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 overvalued.
The current stock price of £0.16 is trading 31.7% above its estimated GF Value™ of £0.12.
GuruFocus considers Software Circle to be Significantly Overvalued.
Key valuation signals for LSE:SFT:
Altman Z-Score: 2.41 (65% above median its 10-year median of 1.46)
GF Value™: £0.12 vs. price of £0.16 (31.7% above fair value)
Industry Position: 18.4% below the Business Services median (#637 of 1060)
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
Get the complete analysis for LSE:SFT
Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:SFT has been successfully added to your 
