Spectra Systems Corporation
Spectra Systems Corporation Fundamental Analysis
Spectra Systems Corporation (SCTQ) shows strong financial fundamentals with a PE ratio of 7.36, profit margin of 21.71%, and ROE of 34.76%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SCTQ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSCTQ demonstrates superior asset utilization.
Valuation Score
ExcellentSCTQ trades at attractive valuation levels.
Growth Score
ModerateSCTQ shows steady but slowing expansion.
Financial Health Score
ExcellentSCTQ maintains a strong and stable balance sheet.
Profitability Score
ExcellentSCTQ achieves industry-leading margins.
Key Financial Metrics
Is SCTQ Expensive or Cheap?
P/E Ratio
SCTQ trades at 7.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SCTQ's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Spectra Systems Corporation at 2.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.93 times EBITDA. This is generally considered low.
How Well Does SCTQ Make Money?
Net Profit Margin
For every $100 in sales, Spectra Systems Corporation keeps $21.71 as profit after all expenses.
Operating Margin
Core operations generate 31.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.76 in profit for every $100 of shareholder equity.
ROA
Spectra Systems Corporation generates $20.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spectra Systems Corporation produces operating cash flow of $8.87M, showing steady but balanced cash generation.
Free Cash Flow
Spectra Systems Corporation generates strong free cash flow of $8.14M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
SCTQ converts 8.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.35
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.38
vs 25 benchmark
How SCTQ Stacks Against Its Sector Peers
| Metric | SCTQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.36 | 35.87 | Better (Cheaper) |
| ROE | 34.76% | 1175.00% | Weak |
| Net Margin | 21.71% | -137082.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 2.27 | 4.81 | Strong Liquidity |
| ROA | 20.76% | -312683.00% (disorted) | Strong |
SCTQ outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spectra Systems Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta