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Spectra Systems
(LSE:SPSY)
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Rating:83Outperform
Price Target:
227.00 p
▲(53.38% Upside)
Action:Reiterated
Date:06/29/26
The score is driven primarily by strong financial performance (very high margins, improved growth, and improving leverage) and an attractive valuation (low P/E with a high dividend yield). Technicals add support via a clear uptrend above major moving averages, while the main offset is less consistent operating cash-flow coverage versus net income in recent years.
Positive Factors
High profitability
Very high 2025 operating and net margins indicate durable earnings power and pricing or structural cost advantages in its niche. Persistent high margins support reinvestment, dividend capacity and resilience through cycles, underpinning long-term cash generation.
Negative Factors
Cash-flow consistency
Operating cash flow lagging net income across multiple years suggests working-capital timing or collection issues that can erode predictability of cash available for investment or dividends. Persistent divergence raises risk to sustainably funding operations from operations alone.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Very high 2025 operating and net margins indicate durable earnings power and pricing or structural cost advantages in its niche. Persistent high margins support reinvestment, dividend capacity and resilience through cycles, underpinning long-term cash generation.
Read all positive factors
Spectra Systems (SPSY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£92.02M
Dividend Yield5.6%
Average Volume (3M)87.48K
Price to Earnings (P/E)6.0
Beta (1Y)0.97
Revenue Growth27.00%
EPS Growth127.49%
CountryUK
Employees28
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.42
Shares Outstanding48,228,973
10 Day Avg. Volume50,510
30 Day Avg. Volume87,481
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
Headquartered in Providence, Rhode Island, Spectra Systems Corporation is a global innovator and developer of integrated optical systems, established in 1996 and previously known as Spectra Science Corporation until its 2001 rebranding. The compan...
How the Company Makes Money
Spectra Systems generates revenue primarily by selling its authentication and security technologies and associated products to customers in the banknote and document security ecosystem. Key revenue streams include: (1) product sales of proprietary...
Spectra Systems Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
80
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
148.00
Price Trends
171.91
Positive
153.61
Positive
147.48
Positive
Market Momentum
5.40
Positive
58.70
Neutral
10.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPSY, the sentiment is Positive. The current price of 148 is below the 20-day moving average (MA) of 184.96, below the 50-day MA of 171.91, and above the 200-day MA of 147.48, indicating a bullish trend. The MACD of 5.40 indicates Positive momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 10.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPSY.
Spectra Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | £92.02M | 6.03 | 30.49% | 5.60% | 27.00% | 127.49% | |
65 Neutral | £64.07M | 18.82 | 21.69% | ― | -3.15% | -17.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £502.79M | -6.79 | -14.39% | 1.73% | 0.82% | -997.08% | |
55 Neutral | £384.43M | 46.47 | 4.85% | 2.16% | ― | ― | |
51 Neutral | £13.34M | -5.35 | -60.27% | ― | -29.86% | 13.84% |
* Technology Sector Average
GB:SPSY
Spectra Systems
189.00
-21.85
-10.36%
GB:GBG
GB Group plc
218.50
-12.43
-5.38%
GB:IGP
Intercede
106.50
-58.00
-35.26%
GB:NCC
NCC Group plc
139.40
-0.37
-0.27%
GB:PEN
Pennant International
28.00
-2.00
-6.67%
Spectra Systems Corporate Events
Regulatory Filings and Compliance
Spectra Systems Updates Share Capital After Employee Option Exercise
Neutral
Jun 11, 2026
Spectra Systems Corporation has announced that an employee has exercised options over 57,263 common shares at an exercise price of 25p per share, with the new restricted securities issued under U.S. regulatory exemptions and due to be admitted to ...
Business Operations and StrategyFinancial Disclosures
Spectra Systems Wins Additional $1.3m Sensor Order, Signals Further Deals Ahead
Positive
May 22, 2026
Spectra Systems Corporation has secured a new $1.3m order for additional sensors from an existing customer, supplementing a previously announced $39.6m sensor contract. The sensors, used for high-speed authentication and anti-counterfeiting applic...
Business Operations and StrategyRegulatory Filings and Compliance
Spectra Systems Updates Share Capital After Employee Option Exercise
Neutral
Apr 16, 2026
Spectra Systems has disclosed that an employee has exercised options over 19,302 common shares at 25p per share, using a net cashless exercise that results in the issue of 16,199 new restricted shares. These shares, issued under a U.S. securities ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Spectra Systems Updates Share Capital After Employee Option Exercise
Neutral
Apr 8, 2026
Spectra Systems Corporation has announced that an employee has exercised options over 70,000 common shares at an exercise price of 25p per share, choosing to pay the cost in cash and receiving newly issued restricted securities. The company will s...
Business Operations and StrategyDividendsFinancial Disclosures
Spectra Systems Delivers Record Profit on Sensor Contracts and Expands Security Printing Pipeline
Positive
Mar 30, 2026
Spectra Systems reported a strong 2025 performance, with revenue rising 30.7% to $64.3m and adjusted EBITDA up 82.9% to $27.3m, driven mainly by sensor production and hardware sales under a major central bank contract. Adjusted earnings per share ...
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.