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Spectra Systems
(LSE:SPSC)
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Rating:68Neutral
Price Target:
174.00 p
▼(-15.12% Downside)
Action:Downgraded
Date:06/29/26
Overall score reflects strong underlying financial performance (high margins, improving leverage, strong ROE) partly offset by weaker technicals (below 100/200-day averages and negative MACD). Valuation is supportive with a low P/E, but lack of dividend yield data limits additional credit.
Positive Factors
High Profitability
Sustained high operating and net margins indicate durable pricing power and operating leverage in Spectra's niche security-products business. High margins provide a structural buffer to fund R&D, sustain returns, and absorb cyclical revenue swings over the next several quarters.
Negative Factors
Weak OCF Conversion
Operating cash flow lagging net income suggests recurring working-capital or timing mismatches in collections or supplier payments. Over time, weaker cash conversion can constrain liquidity, make funding growth costlier, and increase sensitivity to contract timing with governments.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high operating and net margins indicate durable pricing power and operating leverage in Spectra's niche security-products business. High margins provide a structural buffer to fund R&D, sustain returns, and absorb cyclical revenue swings over the next several quarters.
Read all positive factors
Spectra Systems (SPSC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£93.71M
Dividend Yield4.16%
Average Volume (3M)0.00
Price to Earnings (P/E)6.1
Beta (1Y)0.40
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees28
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.42
Shares Outstanding685,720
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.95
Price to Sales (P/S)1.54
P/FCF Ratio10.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.13
Revenue Forecast (FY)£28.37M
Spectra Systems Business Overview & Revenue Model
Company Description
Spectra Systems Corporation, established in 1996 and headquartered in Providence, Rhode Island, is dedicated to the innovation, development, and worldwide sale of sophisticated optical systems. The company's operations are divided into three prima...
How the Company Makes Money
Spectra Systems primarily makes money by selling banknote and document security technologies and related products/services to central banks, government agencies, and commercial customers. Key revenue streams include: (1) sales of security material...
Spectra Systems Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 64.28M | 49.19M | 20.29M | 19.63M | 16.59M |
| Gross Profit | 37.07M | 23.49M | 13.62M | 12.28M | 10.52M |
| EBITDA | 29.88M | 14.70M | 8.21M | 7.91M | 6.74M |
| Net Income | 20.06M | 8.52M | 6.05M | 6.15M | 5.16M |
Balance Sheet | |||||
| Total Assets | 72.37M | 60.97M | 60.10M | 38.02M | 33.15M |
| Cash, Cash Equivalents and Short-Term Investments | 14.82M | 13.35M | 13.25M | 17.50M | 16.77M |
| Total Debt | 8.78M | 10.58M | 12.53M | 1.27M | 1.02M |
| Total Liabilities | 21.01M | 24.65M | 27.98M | 9.70M | 5.23M |
| Stockholders Equity | 50.81M | 35.77M | 31.54M | 27.73M | 27.28M |
Cash Flow | |||||
| Free Cash Flow | 9.61M | 8.46M | 7.04M | 6.58M | 7.54M |
| Operating Cash Flow | 10.11M | 9.90M | 7.52M | 8.04M | 8.08M |
| Investing Cash Flow | -1.61M | -2.98M | -6.67M | -1.46M | 88.00K |
| Financing Cash Flow | -7.06M | -6.86M | -5.10M | -5.80M | -5.43M |
Spectra Systems Technical Analysis
Positive
205.00
Price Trends
150.03
Positive
164.45
Negative
178.21
Negative
Market Momentum
0.54
Negative
96.64
Negative
-288.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPSC, the sentiment is Positive. The current price of 205 is above the 20-day moving average (MA) of 150.34, above the 50-day MA of 150.03, and above the 200-day MA of 178.21, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 96.64 is Negative, neither overbought nor oversold. The STOCH value of -288.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPSC.
Spectra Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £93.71M | 6.11 | 30.49% | 4.16% | ― | ― | |
65 Neutral | £64.98M | 19.08 | 21.69% | ― | -3.15% | -18.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £492.43M | -6.65 | -14.39% | 1.73% | 0.82% | -997.08% | |
55 Neutral | £354.10M | 42.80 | 4.85% | 2.16% | ― | ― | |
51 Neutral | £13.34M | -5.35 | -60.27% | ― | -29.86% | 13.84% |
* Technology Sector Average
GB:SPSC
Spectra Systems
160.00
-31.97
-16.65%
GB:GBG
GB Group plc
214.00
-15.96
-6.94%
GB:IGP
Intercede
108.00
-78.50
-42.09%
GB:NCC
NCC Group plc
128.40
-11.18
-8.01%
GB:PEN
Pennant International
28.00
0.50
1.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.