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Spectra Systems
(LSE:SPSY)
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Rating:77Outperform
Price Target:
169.00 p
▼(-0.29% Downside)
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
Accelerating Revenue
The substantial increase in revenue indicates stronger commercial momentum and expanding demand for the company’s offerings. If maintained, this growth can improve operating leverage, support continued investment in proprietary security technologies, and strengthen Spectra’s position in its specialist market over the next several quarters.
Negative Factors
Inconsistent Operating Cash Conversion
Operating cash flow below net income for several consecutive years indicates that earnings have not consistently translated into operating cash at the same pace. Working-capital or timing headwinds could constrain liquidity and reduce the flexibility available for investment or distributions if the pattern persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue
The substantial increase in revenue indicates stronger commercial momentum and expanding demand for the company’s offerings. If maintained, this growth can improve operating leverage, support continued investment in proprietary security technologies, and strengthen Spectra’s position in its specialist market over the next several quarters.
Read all positive factors
Spectra Systems (SPSY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£73.56M
Dividend Yield7.23%
Average Volume (3M)42.62K
Price to Earnings (P/E)4.5
Beta (1Y)0.98
Revenue Growth27.00%
EPS Growth127.49%
CountryUK
Employees28
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.42
Shares Outstanding48,424,152
10 Day Avg. Volume38,640
30 Day Avg. Volume42,621
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
Negative
169.50
Price Trends
163.33
Negative
170.71
Negative
155.05
Negative
Market Momentum
-5.20
Positive
26.63
Positive
41.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPSY, the sentiment is Negative. The current price of 169.5 is above the 20-day moving average (MA) of 153.13, above the 50-day MA of 163.33, and above the 200-day MA of 155.05, indicating a bearish trend. The MACD of -5.20 indicates Positive momentum. The RSI at 26.63 is Positive, neither overbought nor oversold. The STOCH value of 41.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | £73.56M | 4.47 | 43.71% | 7.23% | 27.00% | 127.49% | |
73 Outperform | £76.88M | 22.26 | 18.91% | ― | -3.15% | -17.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | £224.77M | 49.27 | 4.85% | 3.15% | ― | ― | |
54 Neutral | £333.87M | -4.65 | -14.39% | 2.94% | 0.82% | -997.08% | |
52 Neutral | £15.24M | -16.93 | -13.64% | 5.13% | 0.91% | 81.47% |
* Technology Sector Average
GB:SPSY
Spectra Systems
141.50
-26.61
-15.83%
GB:GBG
GB Group plc
149.80
-96.30
-39.13%
GB:IGP
Intercede
126.00
-49.50
-28.21%
GB:NCC
NCC Group plc
147.80
5.65
3.97%
GB:PEN
Pennant International
32.00
10.80
50.94%
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...
Business Operations and Strategy
Spectra Systems wins Swiss Post hybrid stamp conversion, lifting contract value
Positive
Jul 23, 2026
Spectra Systems said Swiss Post will convert its stamp programme to hybrid stamps featuring data-matrix codes after a successful pilot, enhancing security, traceability and customer engagement. Hybrid stamps are gaining traction as postal operator...
Business Operations and StrategyFinancial Disclosures
Spectra Systems Wins Additional Sensor Order to Expand Banknote Security Deployment
Positive
Jul 9, 2026
Spectra Systems Corporation has secured a second order for its banknote authentication sensors from an existing customer, to be used by a second affiliated organization, building on a previously announced $39.6 million contract. The new order is e...
Shareholder Meetings
Spectra Systems Sets Date for 2026 Annual General Meeting
Neutral
Jul 8, 2026
Spectra Systems Corporation has issued formal notice that its annual general meeting will be held on 31 July 2026 in Providence, Rhode Island, with documents already posted to shareholders and available on the company’s website. The AGM anno...
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.