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Spectra Systems
(LSE:SPSY)
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Rating:77Outperform
Price Target:
199.00 p
▲(17.40% Upside)
Action:Reiterated
Date:09/29/26
Score is supported primarily by strong financial performance (high margins, improving growth, conservative leverage) and very attractive valuation (low P/E and high dividend yield). The key offset is weak technical momentum, with the share price below key moving averages and negative MACD, suggesting near-term trend pressure despite oversold readings.
Positive Factors
High profitability and revenue growth
Very strong gross, operating, and net margins provide substantial earnings capacity and resilience for a specialist technology supplier. The sharp revenue increase also indicates improved commercial traction, giving Spectra greater resources to reinvest in products, customer programs, and future growth.
Negative Factors
Inconsistent operating cash conversion
Operating cash flow below net income for three consecutive years indicates that earnings have not converted consistently into operating cash. Even with strong free cash flow, recurring working-capital or timing headwinds could constrain reinvestment capacity and make cash generation less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and revenue growth
Very strong gross, operating, and net margins provide substantial earnings capacity and resilience for a specialist technology supplier. The sharp revenue increase also indicates improved commercial traction, giving Spectra greater resources to reinvest in products, customer programs, and future growth.
Read all positive factors
Spectra Systems (SPSY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£85.91M
Dividend Yield5.87%
Average Volume (3M)69.69K
Price to Earnings (P/E)8.6
Beta (1Y)1.09
Revenue Growth27.00%
EPS Growth127.49%
CountryUK
Employees28
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.27
Shares Outstanding48,424,152
10 Day Avg. Volume64,974
30 Day Avg. Volume69,686
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)£28.08M
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 makes money primarily by selling its authentication and security technologies and related components to customers that produce or manage secure printed items and anti-counterfeit programs. Key revenue streams include: (1) product s...
Spectra Systems Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
80
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.94M | 64.28M | 49.19M | 20.29M | 19.63M | 16.59M |
| Gross Profit | 27.78M | 37.07M | 23.49M | 13.62M | 12.28M | 10.52M |
| EBITDA | 4.89M | 29.88M | 14.70M | 8.21M | 7.91M | 6.74M |
| Net Income | 12.90M | 20.06M | 8.52M | 6.05M | 6.15M | 5.16M |
Balance Sheet | ||||||
| Total Assets | 68.49M | 72.37M | 60.97M | 60.10M | 38.02M | 33.15M |
| Cash, Cash Equivalents and Short-Term Investments | 14.89M | 14.82M | 13.35M | 13.25M | 17.50M | 16.77M |
| Total Debt | 8.00M | 8.78M | 10.58M | 12.53M | 1.27M | 1.02M |
| Total Liabilities | 20.89M | 21.01M | 24.65M | 27.98M | 9.70M | 5.23M |
| Stockholders Equity | 47.07M | 50.81M | 35.77M | 31.54M | 27.73M | 27.28M |
Cash Flow | ||||||
| Free Cash Flow | 10.88M | 9.61M | 8.46M | 7.04M | 6.58M | 7.54M |
| Operating Cash Flow | 10.23M | 10.11M | 9.90M | 7.52M | 8.04M | 8.08M |
| Investing Cash Flow | 4.25M | -1.61M | -2.98M | -6.67M | -1.46M | 88.00K |
| Financing Cash Flow | -1.99M | -7.06M | -6.86M | -5.10M | -5.80M | -5.43M |
Spectra Systems Technical Analysis
Positive
169.50
Price Trends
158.46
Positive
169.32
Positive
156.31
Positive
Market Momentum
4.26
Negative
74.06
Negative
70.83
Neutral
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 169.5 is above the 20-day moving average (MA) of 158.13, above the 50-day MA of 158.46, and above the 200-day MA of 156.31, indicating a bullish trend. The MACD of 4.26 indicates Negative momentum. The RSI at 74.06 is Negative, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £85.91M | 8.62 | 26.35% | 5.87% | 27.00% | 127.49% | |
73 Outperform | £82.98M | 24.03 | 18.91% | ― | -3.15% | -17.89% | |
59 Neutral | £261.09M | 57.60 | 4.85% | 2.69% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | £368.18M | -5.00 | -14.39% | 2.73% | 0.82% | -997.08% | |
52 Neutral | £16.43M | -18.25 | -13.64% | 5.13% | 0.91% | 81.47% |
* General Sector Average
GB:SPSY
Spectra Systems
175.00
37.76
27.51%
GB:GBG
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-76.29
-32.15%
GB:IGP
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136.00
-21.50
-13.65%
GB:NCC
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172.80
28.53
19.77%
GB:PEN
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34.50
12.50
56.82%
Spectra Systems Corporate Events
Business Operations and StrategyProduct-Related Announcements
Spectra Systems Licenses New Polymer Banknote Security Feature
Positive
Aug 4, 2026
Spectra Systems has signed a licensing agreement with Oberthur Fiduciaire SAS for Kryptonome, a new public security feature for polymer banknotes patented by Oberthur. The feature’s gravure cylinder design was jointly developed by Spectra...
Business Operations and StrategyShareholder Meetings
Spectra Systems AGM Stalled After Failing to Reach Shareholder Quorum
Negative
Jul 31, 2026
Spectra Systems Corporation has disclosed that its 2026 Annual General Meeting, scheduled for 31 July, could not proceed due to the lack of a quorum. Despite receiving six ballots and approximately 30% of eligible shares being voted, the company f...
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.