Spectra Systems Corporation (SCTQ) Fair Value & Analysis

Technology · US · Market cap $103M

A solid business, screening 123% undervalued on our models.

What matters now

• The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict.
• The price is below even our cautious bear case ($3.24). The market is more pessimistic than our downside scenario.
• A fairly wide model range ($3.24 to $6.25) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range $1.15 – $2.24 · fair‑value band $3.24 – $6.25 · the $2.24 price screens below the $5.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Spectra Systems Corporation (SCTQ) currently trades at $2.24, while our model-based Fair Value estimate is $5.00, implying the stock looks roughly 123.2% undervalued today. The Quality Score stands at 74/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Spectra Systems Corporation generated revenue of $64.3M at a net margin of 31.2%. Revenue grew 10.8% year over year. It earns a return on equity of 45.7%. The balance sheet holds a net cash position of $2.8M. Fundamentals as of Jul 25, 2026

Our scenario range runs from $3.24 (bear case) to $6.25 (bull case); at $2.24, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 10% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at 123%, SCTQ screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth Earnings ($6.34) versus Asset-Based ($0.5000). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Spectra Systems Corporation invents, develops, and sells integrated optical systems in the United States and internationally. It operates through four segments: Authentication Systems, Secure Transactions, Security Printing, and Banknote Cleaning.

Full company description

Spectra Systems Corporation invents, develops, and sells integrated optical systems in the United States and internationally. It operates through four segments: Authentication Systems, Secure Transactions, Security Printing, and Banknote Cleaning. It offers integrated solutions, including a system of taggant materials and sensor equipment to authenticate banknotes and security documents; and banknote cleaning and disinfection systems. The company also provides optical materials for security and quality control, such as fluorescent and phosphorescent pigments and dyes, invisible pigments and dyes, and gasochromic response materials; customized materials and hardware solutions; and internal control systems for integrity of the lottery and sports betting games. In addition, it offers software and hardware systems comprising high-speed currency authentication sensors; and conventional and hybrid postage stamps, tax stamps, vouchers, coupons, certificates, and high-security 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 incorporated in 1996 and is headquartered in Providence, Rhode Island.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Spectra Systems Corporation reported revenue of $49.2M in FY2024 versus $15.6M in FY2020, a compound +33.2%/yr. Reported net income was $8.5M in FY2024, compounding +11.8%/yr from FY2020.

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Peer Group

Software - Application · 709 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Software - Application median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.