Spectra Systems
Market Cap
UK£66.6m
Last Updated
2020/02/16 21:48 UTC
Data Sources
Company Financials +
Executive Summary
Spectra Systems Corporation invents, develops, and sells integrated optical systems in the United States, Europe, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Spectra Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SPSC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
SPSC
0.3%
GB Electronic
-0.2%
GB Market
1 Year Return
28.9%
SPSC
18.8%
GB Electronic
6.1%
GB Market
Return vs Industry: SPSC exceeded the UK Electronic industry which returned 18.8% over the past year.
Return vs Market: SPSC exceeded the UK Market which returned 6.1% over the past year.
Shareholder returns
| SPSC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.3% | -0.2% |
| 30 Day | 0% | 1.5% | -2.7% |
| 90 Day | 7.4% | 10.1% | 3.9% |
| 1 Year | 34.6%28.9% | 20.7%18.8% | 11.8%6.1% |
| 3 Year | 683.7%544.4% | 59.3%52.0% | 17.5%2.6% |
| 5 Year | 1206.2%974.1% | 117.8%99.6% | 34.8%3.7% |
Price Volatility Vs. Market
How volatile is Spectra Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should We Worry About Spectra Systems Corporation's (LON:SPSC) P/E Ratio?2 weeks ago | Simply Wall St
Consider This Before Buying Spectra Systems Corporation (LON:SPSC) For The 3.7% Dividend1 month ago | Simply Wall St
Evaluating Spectra Systems Corporation’s (LON:SPSC) Investments In Its BusinessValuation
Is Spectra Systems undervalued compared to its fair value and its price relative to the market?
32.86x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SPSC (£1.45) is trading above our estimate of fair value (£1.42)
Significantly Below Fair Value: SPSC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SPSC is poor value based on its PE Ratio (32.9x) compared to the Electronic industry average (21.3x).
PE vs Market: SPSC is poor value based on its PE Ratio (32.9x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: SPSC is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: SPSC is overvalued based on its PB Ratio (3.5x) compared to the GB Electronic industry average (2.3x).
Next Steps
Future Growth
How is Spectra Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
20.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SPSC's forecast earnings growth (20.9% per year) is above the savings rate (0.5%).
Earnings vs Market: SPSC's earnings (20.9% per year) are forecast to grow faster than the UK market (12.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SPSC's revenue (5.2% per year) is forecast to grow faster than the UK market (3.4% per year).
High Growth Revenue: SPSC's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SPSC's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Spectra Systems performed over the past 5 years?
52.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SPSC has high quality earnings.
Growing Profit Margin: SPSC's current net profit margins (24%) are lower than last year (32.8%).
Past Earnings Growth Analysis
Earnings Trend: SPSC has become profitable over the past 5 years, growing earnings by 52.4% per year.
Accelerating Growth: SPSC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SPSC had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Electronic industry average (-20.7%).
Return on Equity
High ROE: SPSC's Return on Equity (10.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Spectra Systems's financial position?
Financial Position Analysis
Short Term Liabilities: SPSC's short term assets ($16.4M) exceed its short term liabilities ($2.2M).
Long Term Liabilities: SPSC's short term assets ($16.4M) exceed its long term liabilities ($1.5M).
Debt to Equity History and Analysis
Debt Level: SPSC is debt free.
Reducing Debt: SPSC has not had any debt for past 5 years.
Debt Coverage: SPSC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SPSC has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: SPSC has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if SPSC's debt is covered by short term assets.
Next Steps
Dividend
What is Spectra Systems's current dividend yield, its reliability and sustainability?
3.71%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SPSC's dividend (3.71%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: SPSC's dividend (3.71%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SPSC has been paying a dividend for less than 10 years.
Growing Dividend: SPSC's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (121.8%), SPSC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.1yrs
Average management tenure
CEO
Nabil Lawandy 0
23.6yrs
Tenure
US$510,554
Compensation
Dr. Nabil M. Lawandy, Ph.D. is the Founder of Spectra Systems Corporation and has been its Chief Executive Officer and President since July 1996. Dr. Lawandy serves as the President, Chief Technology Offic ...
CEO Compensation Analysis
Compensation vs Market: Nabil's total compensation ($USD510.55K) is above average for companies of similar size in the UK market ($USD325.67K).
Compensation vs Earnings: Nabil's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 23.6yrs | US$510.55k | 4.76% $3.2m | |
| CFO & Company Secretary | 3.1yrs | no data | no data | |
| Managing Director of Ics Operations | 8.1yrs | no data | no data |
8.1yrs
Average Tenure
Experienced Management: SPSC's management team is seasoned and experienced (8.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 23.6yrs | US$510.55k | 4.76% $3.2m | |
| Non-Executive Director | 0yrs | US$27.00k | no data | |
| Member of Technology Advisory Board | 0yrs | no data | no data | |
| Member of Technology Advisory Board | 0yrs | no data | no data | |
| Chairman of Technology Advisory Board | 0yrs | no data | no data | |
| Member of Technology Advisory Board | 0yrs | no data | no data | |
| Member of Technology Advisory Board | 0yrs | no data | no data | |
| Member of Technology Advisory Board | 0yrs | no data | no data | |
| Non-Executive Chairman | 8.7yrs | US$27.00k | 0.065% $43.5k | |
| Non-Executive Director | 13.1yrs | US$27.00k | 0.16% $104.2k |
13.1yrs
Average Tenure
73yo
Average Age
Experienced Board: SPSC's board of directors are seasoned and experienced ( 13.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Spectra Systems Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Spectra Systems Corporation
- Ticker: SPSC
- Exchange: AIM
- Founded: 1996
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: UK£66.552m
- Shares outstanding: 45.90m
- Website: https://www.spsy.com
Number of Employees
Location
- Spectra Systems Corporation
- 40 Westminster Street
- 2nd Floor
- Providence
- Rhode Island
- 2903
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SPSY | AIM (London Stock Exchange AIM Market) | COM SHS USD0.01 | GB | GBP | Jul 2011 | |
| SPSC | AIM (London Stock Exchange AIM Market) | Yes | Common Stock | GB | GBP | Jul 2011 |
| SCTQ | OTCPK (Pink Sheets LLC) | COM SHS USD0.01 | US | USD | Jul 2011 |
Biography
Spectra Systems Corporation invents, develops, and sells integrated optical systems in the United States, Europe, and internationally. It operates through three segments: Authentication Systems, Secure Transactions, and Banknote Cleaning. The company’s products include a system of taggant materials and sensor equipment to authenticate banknotes that are used by central banks, as well as a G7 country for passport security; and hardware and software systems include high-speed currency authentication sensors. It also develops quality control equipment for use in paper and polymer banknote manufacturing and printing; and solutions to authenticate brand name products. In addition, the company offers banknote cleaning solution that lifts sebum and other substances from the banknote using a dry process based on supercritical CO2 cleaning; real-time auditing, fraud control, and risk management systems to government sanctioned gaming operators; and software tools for the lottery and gaming industries, fraud and money laundering, and match fixing detection, as well as for statistical analysis. Further, it develops, markets, and sells customized authentication solutions designed to enhance the security of documents and branded products. Spectra Systems Corporation sells its integrated solutions for various markets, such as currency manufacturing and cleaning, branded products, industrial logistics, and other highly sensitive documents. The company was formerly known as Spectra Science Corporation and changed its name to Spectra Systems Corporation in June 2001. Spectra Systems Corporation was founded in 1996 and is headquartered in Providence, Rhode Island.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 21:48 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.