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Spectra Systems

AIM:SPSC
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPSC
AIM
£70M
Market Cap
  1. Home
  2. GB
  3. Tech
Company description

Spectra Systems Corporation invents, develops, and sells integrated optical systems in the United States, Europe, and internationally. The last earnings update was 11 days ago. More info.


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SPSC Share Price and Events
7 Day Returns
0%
AIM:SPSC
1.9%
GB Electronic
-3.3%
GB Market
1 Year Returns
17.3%
AIM:SPSC
-8.3%
GB Electronic
-25%
GB Market
SPSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spectra Systems (SPSC) 0% 5.2% 7% 17.3% 510% 702.6%
GB Electronic 1.9% -10.5% -19.1% -8.3% 19.7% 61.3%
GB Market -3.3% -19.5% -28.9% -25% -25.8% -24.1%
1 Year Return vs Industry and Market
  • SPSC outperformed the Electronic industry which returned -8.3% over the past year.
  • SPSC outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -25% over the past year.
Price Volatility
SPSC
Industry
5yr Volatility vs Market

SPSC Value

 Is Spectra Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Spectra Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Spectra Systems.

AIM:SPSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SPSC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 5.4%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.093 (1 + (1- 21%) (1.31%))
1.07
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.07 * 5.44%)
6.35%

Discounted Cash Flow Calculation for AIM:SPSC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spectra Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

AIM:SPSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.35%)
2020 5.61 Est @ 8.53% 5.27
2021 5.95 Est @ 6.13% 5.26
2022 6.22 Est @ 4.45% 5.17
2023 6.42 Est @ 3.27% 5.02
2024 6.58 Est @ 2.45% 4.84
2025 6.70 Est @ 1.87% 4.63
2026 6.80 Est @ 1.47% 4.42
2027 6.88 Est @ 1.19% 4.21
2028 6.95 Est @ 0.99% 3.99
2029 7.01 Est @ 0.85% 3.79
Present value of next 10 years cash flows $46.00
AIM:SPSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $7.01 × (1 + 0.53%) ÷ (6.35% – 0.53%)
$121.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $121.07 ÷ (1 + 6.35%)10
$65.41
AIM:SPSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $46.00 + $65.41
$111.41
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $111.41 / 45.85
$2.43
AIM:SPSC Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of AIM:SPSC)
0.806
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $2.43 x 0.806
£1.96
Value per share (GBP) From above. £1.96
Current discount Discount to share price of £1.53
= -1 x (£1.53 - £1.96) / £1.96
22.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Spectra Systems is available for.
Intrinsic value
22%
Share price is £1.53 vs Future cash flow value of £1.96
Current Discount Checks
For Spectra Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Spectra Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Spectra Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Spectra Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spectra Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SPSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.09
AIM:SPSC Share Price ** AIM (2020-04-02) in GBP £1.53
AIM:SPSC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.241 $1.89
United Kingdom of Great Britain and Northern Ireland Electronic Industry PE Ratio Median Figure of 22 Publicly-Listed Electronic Companies 16.68x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Spectra Systems.

AIM:SPSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SPSC Share Price ÷ EPS (both in USD)

= 1.89 ÷ 0.09

20.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spectra Systems is overvalued based on earnings compared to the GB Electronic industry average.
  • Spectra Systems is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Spectra Systems's expected growth come at a high price?
Raw Data
AIM:SPSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Electronic Industry PEG Ratio Median Figure of 11 Publicly-Listed Electronic Companies 1.01x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 522 Publicly-Listed Companies 0.98x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Spectra Systems, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Spectra Systems's assets?
Raw Data
AIM:SPSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $0.59
AIM:SPSC Share Price * AIM (2020-04-02) in GBP £1.53
AIM:SPSC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.241 $1.89
United Kingdom of Great Britain and Northern Ireland Electronic Industry PB Ratio Median Figure of 34 Publicly-Listed Electronic Companies 1.69x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.08x
AIM:SPSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SPSC Share Price ÷ Book Value per Share (both in USD)

= 1.89 ÷ 0.59

3.2x

* Primary Listing of Spectra Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spectra Systems is overvalued based on assets compared to the GB Electronic industry average.
X
Value checks
We assess Spectra Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Spectra Systems has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SPSC Future Performance

 How is Spectra Systems expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.2%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Spectra Systems expected to grow at an attractive rate?
  • Unable to compare Spectra Systems's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Spectra Systems's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Spectra Systems's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SPSC Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SPSC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 9.2%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Earnings Growth Rate Market Cap Weighted Average 9.9%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SPSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SPSC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 16 1
2020-12-31 14 1
AIM:SPSC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 13 6 4
2019-09-30 12 4 3
2019-06-30 11 3 3
2019-03-31 12 4 3
2018-12-31 12 5 4
2018-09-30 13 5 4
2018-06-30 13 6 4
2018-03-31 13 5 4
2017-12-31 12 5 3
2017-09-30 13 4 4
2017-06-30 13 4 4
2017-03-31 12 3 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Spectra Systems is high growth as no earnings estimate data is available.
  • Spectra Systems's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SPSC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Spectra Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SPSC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
AIM:SPSC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.09
2019-09-30 0.08
2019-06-30 0.06
2019-03-31 0.07
2018-12-31 0.09
2018-09-30 0.09
2018-06-30 0.09
2018-03-31 0.08
2017-12-31 0.07
2017-09-30 0.08
2017-06-30 0.09
2017-03-31 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Spectra Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Spectra Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Spectra Systems has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SPSC Past Performance

  How has Spectra Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Spectra Systems's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Spectra Systems has delivered over 20% year on year earnings growth in the past 5 years.
  • Spectra Systems's 1-year earnings growth is less than its 5-year average (6.9% vs 41.2%)
  • Spectra Systems's earnings growth has not exceeded the GB Electronic industry average in the past year (6.9% vs 6.9%).
Earnings and Revenue History
Spectra Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Spectra Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SPSC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 13.23 4.34 3.30 1.74
2019-09-30 12.09 3.48 3.26 1.79
2019-06-30 10.94 2.62 3.23 1.83
2019-03-31 11.72 3.34 3.24 1.83
2018-12-31 12.49 4.05 3.25 1.83
2018-09-30 12.73 4.16 3.36 1.80
2018-06-30 12.97 4.26 3.47 1.77
2018-03-31 12.57 3.77 3.66 1.77
2017-12-31 12.17 3.28 3.86 1.77
2017-09-30 12.81 3.65 3.75 2.06
2017-06-30 13.46 4.01 3.63 2.35
2017-03-31 12.29 2.58 3.90 2.35
2016-12-31 11.12 1.14 4.16 2.35
2016-09-30 11.67 0.75 4.22 2.45
2016-06-30 12.22 0.36 4.28 2.55
2016-03-31 13.16 0.20 4.23 2.55
2015-12-31 14.11 0.03 4.18 2.55
2015-09-30 13.97 -0.07 4.08 2.79
2015-06-30 13.82 -0.18 3.97 3.03
2015-03-31 15.36 0.43 4.20 3.03
2014-12-31 16.91 1.04 4.43 3.03
2014-09-30 17.76 -0.10 4.66 2.94
2014-06-30 18.62 -1.25 4.88 2.85
2014-03-31 15.10 -2.13 4.48 2.85
2013-12-31 11.57 -3.00 4.08 2.85
2013-09-30 10.50 -2.34 4.06 2.47
2013-06-30 9.43 -1.67 4.05 2.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Spectra Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Spectra Systems used its assets more efficiently than the GB Electronic industry average last year based on Return on Assets.
  • Spectra Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Spectra Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Spectra Systems has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SPSC Health

 How is Spectra Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Spectra Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spectra Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Spectra Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Spectra Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Spectra Systems has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Spectra Systems Company Filings, last reported 3 months ago.

AIM:SPSC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 27.11 0.00 14.25
2019-09-30 27.11 0.00 14.25
2019-06-30 24.74 0.00 11.14
2019-03-31 24.74 0.00 11.14
2018-12-31 25.88 0.00 12.66
2018-09-30 25.88 0.00 12.66
2018-06-30 25.22 0.00 12.30
2018-03-31 25.22 0.00 12.30
2017-12-31 24.45 0.00 11.18
2017-09-30 24.45 0.00 11.18
2017-06-30 23.55 0.00 9.45
2017-03-31 23.55 0.00 9.45
2016-12-31 23.27 0.00 8.81
2016-09-30 23.27 0.00 8.81
2016-06-30 21.65 0.00 8.71
2016-03-31 21.65 0.00 8.71
2015-12-31 22.03 0.00 9.81
2015-09-30 22.03 0.00 9.81
2015-06-30 21.30 0.00 9.77
2015-03-31 21.30 0.00 9.77
2014-12-31 22.00 0.00 9.77
2014-09-30 22.00 0.00 9.77
2014-06-30 21.47 0.00 9.64
2014-03-31 21.47 0.00 9.64
2013-12-31 20.95 0.00 13.43
2013-09-30 20.95 0.00 13.43
2013-06-30 22.61 0.00 14.23
  • Spectra Systems has no debt.
  • Spectra Systems has not taken on any debt in the past 5 years.
  • Spectra Systems has no debt, it does not need to be covered by operating cash flow.
  • Spectra Systems has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Spectra Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Spectra Systems has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SPSC Dividends

 What is Spectra Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.7%
Current annual income from Spectra Systems dividends.
If you bought £2,000 of Spectra Systems shares you are expected to receive £74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Spectra Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.67%).
  • Spectra Systems's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.36%).
Upcoming dividend payment

Purchase Spectra Systems before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SPSC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Electronic Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 622 Stocks 6.1%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.4%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:SPSC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
AIM:SPSC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.070 4.070
2019-03-25 0.070 4.123
2018-04-24 0.060 4.970
2018-03-19 0.060 4.747
2017-06-22 0.050 4.856
2017-03-30 0.050 13.429

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Spectra Systems has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Spectra Systems only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Spectra Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Spectra Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Spectra Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spectra Systems has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SPSC Management

 What is the CEO of Spectra Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nabil Lawandy
COMPENSATION $510,554
TENURE AS CEO 23.8 years
CEO Bio

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 Officer and Chief Executive Officer of Solaris Nanosciences Corp. He serves as the Chief Executive Officer and Chief Technology Officer of SpectraDisc Corporation. He served as Chief Technology Officer of Spectra Systems Corporation. From 1981 to 1999, he was a tenured Full Professor of Engineering and Physics at Brown University in Providence, Rhode Island. He served as the President and Chairman of the Board of SpectraDisc Corporation, a former subsidiary of Spectra Systems. He serves as a Member of Executive Advisory Board at Agincourt Capital Partners LLC specializing in Materials Science. He served as the Chairman of the Board at Spectra Systems Corporation since July 1996 and has been its Director since July 1996. He has authored over 170 reviewed scientific papers and is an inventor on 40 issued patents. He has also received a Presidential Young Investigator award, an Alfred P. Sloan Fellowship, a Rolex Award for Enterprise and a Samuel Slater Award for Innovation. Dr. Lawandy holds a B.A. in Physics from The Johns Hopkins University in 1977, an M.S. in Chemistry from The Johns Hopkins University in 1979 and a Ph.D. in Chemistry from The Johns Hopkins University in 1980.

CEO Compensation
  • Nabil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nabil's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Spectra Systems management team in years:

8.3
Average Tenure
  • The average tenure for the Spectra Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Nabil Lawandy

TITLE
Founder
COMPENSATION
$511K
TENURE
23.8 yrs

Brian McLain

TITLE
CFO & Company Secretary
AGE
43
TENURE
3.3 yrs

Amer Sidhu

TITLE
Managing Director of Ics Operations
TENURE
8.3 yrs
Board of Directors Tenure

Average tenure and age of the Spectra Systems board of directors in years:

13.3
Average Tenure
73
Average Age
  • The average tenure for the Spectra Systems board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Buddie Penn

TITLE
Non-Executive Chairman
COMPENSATION
$27K
AGE
81
TENURE
8.8 yrs

Nabil Lawandy

TITLE
Founder
COMPENSATION
$511K
TENURE
23.8 yrs

Joseph Calo

TITLE
Chairman of Technology Advisory Board

Martin Jaskel

TITLE
Non-Executive Director
COMPENSATION
$27K
AGE
73
TENURE
13.3 yrs

Don Stanford

TITLE
Non-Executive Director
COMPENSATION
$27K
AGE
68

Brian Wilson

TITLE
Member of Technology Advisory Board

Clive Hohberger

TITLE
Member of Technology Advisory Board

H. Geysen

TITLE
Member of Technology Advisory Board

Shaoul Ezekiel

TITLE
Member of Technology Advisory Board

Harold Fetterman

TITLE
Member of Technology Advisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Spectra Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Spectra Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SPSC News

Simply Wall St News

Do You Know What Spectra Systems Corporation's (LON:SPSC) P/E Ratio Means?

View our latest analysis for Spectra Systems How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) Or for Spectra Systems: P/E of 17.76 = $1.58 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.089 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … Its net cash position supports a higher P/E ratio, as does its solid recent earnings growth.

Simply Wall St -

Here's Why I Think Spectra Systems (LON:SPSC) Is An Interesting Stock

So it is good to see that Spectra Systems insiders have a significant amount of capital invested in the stock. … Although Spectra Systems certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

How Much Of Spectra Systems Corporation (LON:SPSC) Do Insiders Own?

Spectra Systems is a smaller company with a market capitalization of UK£60m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Spectra Systems AIM:SPSC Ownership Summary, August 8th 2019 What Does The Institutional Ownership Tell Us About Spectra Systems? … We can see that Spectra Systems does have institutional investors; and they hold 21% of the stock.

Simply Wall St -

Should You Be Excited About Spectra Systems Corporation's (LON:SPSC) 16% Return On Equity?

Check out our latest analysis for Spectra Systems How Do You Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Spectra Systems: 16% = US$4.1m ÷ US$26m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Spectra Systems's Debt And Its 16% Return On Equity Spectra Systems is free of net debt, which is a positive for shareholders.

Simply Wall St -

Is Spectra Systems Corporation (LON:SPSC) A Great Dividend Stock?

Could Spectra Systems Corporation (LON:SPSC) be an attractive dividend share to own for the long haul? … Spectra Systems pays a 4.3% dividend yield, and has been paying dividends for the past two years. … Some simple analysis can reduce the risk of holding Spectra Systems for its dividend, and we'll focus on the most important aspects below.

Simply Wall St -

Is Spectra Systems Corporation's (LON:SPSC) CEO Overpaid Relative To Its Peers?

Our data indicates that Spectra Systems Corporation is worth UK£60m, and total annual CEO compensation is US$511k. … Most shareholders would probably be pleased with Spectra Systems Corporation for providing a total return of 635% over three years. … We compared the total CEO remuneration paid by Spectra Systems Corporation, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Does Spectra Systems Corporation (LON:SPSC) Create Value For Shareholders?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Spectra Systems: 0.15 = US$3.9m ÷ (US$28m - US$1.8m) (Based on the trailing twelve months to December 2018.) Therefore, Spectra Systems has an ROCE of 15%. … How Spectra Systems's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … Low current liabilities have only a minimal impact on Spectra Systems's ROCE, making its decent returns more credible.

Simply Wall St -

Does Spectra Systems Corporation (LON:SPSC) Have A Good P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Spectra Systems: P/E of 18.39 = $1.64 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.089 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … Does Spectra Systems Have A Relatively High Or Low P/E For Its Industry? … How Does Spectra Systems's Debt Impact Its P/E Ratio?

Simply Wall St -

If You Had Bought Spectra Systems (LON:SPSC) Shares Three Years Ago You'd Have Made 505%

Take, for example, the Spectra Systems Corporation (LON:SPSC) share price, which skyrocketed 505% over three years. … Spectra Systems was able to grow its EPS at 388% per year over three years, sending the share price higher. … We note that for Spectra Systems the TSR over the last 3 years was 604%, which is better than the share price return mentioned above.

Simply Wall St -

Why We Think Spectra Systems Corporation (LON:SPSC) Could Be Worth Looking At

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a

Simply Wall St -

SPSC Company Info

Description

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.

Details
Name: Spectra Systems Corporation
SPSC
Exchange: AIM
Founded: 1996
£69,917,637
45,847,631
Website: http://www.spsy.com
Address: Spectra Systems Corporation
40 Westminster Street,
2nd Floor,
Providence,
Rhode Island, 02903,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SPSC Common Stock London Stock Exchange AIM Market GB GBP 25. Jul 2011
AIM SPSY COM SHS USD0.01 London Stock Exchange AIM Market GB GBP 25. Jul 2011
OTCPK SCTQ COM SHS USD0.01 Pink Sheets LLC US USD 25. Jul 2011
Number of employees
Current staff
Staff numbers
28
Spectra Systems employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 01:50
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/23
Last earnings filing: 2020/03/23
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.