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Spectra SystemsSCTQ 73 Debt-to-Equity is 0.17 as of Dec. 2025, which is 240% above its 10-year median of 0.05. GuruFocus rates SCTQ with a GF Score™ of 73/100 and a GF Value™ of $4.21. The stock has 4 warning signs investors should review. Among 2,243 Software companies, Spectra Systems ranks better than 53.81% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Spectra Systems's Debt-to-Equity or its related term are showing as below:
SCTQ'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.04 Med: 0.05 Max: 0.4
Current: 0.17
During the past 13 years, the highest Debt-to-Equity Ratio of Spectra Systems was 0.40. The lowest was 0.04. And the median was 0.05.
SCTQ's Debt-to-Equity is ranked better than 53.81% of 2243
companies
in the Software industry
Industry Median: 0.2
vs SCTQ: 0.17
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Spectra Systems Debt-to-Equity Related Terms
Spectra Systems Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Spectra Systems's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Spectra Systems's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Spectra Systems Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Spectra Systems's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Spectra Systems's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Spectra Systems (SCTQ) has a Debt-to-Equity of 0.17 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Spectra Systems and its competitors. This is 240% above median its historical median of 0.05. Over the past decade, Spectra Systems' Debt-to-Equity has ranged from 0.04 to 0.40. According to the industry distribution chart, Spectra Systems ranks #1036 out of 2243 companies in the Software industry, placing it in the top 46.2%.
Is Spectra Systems' Debt-to-Equity too high?
Spectra Systems' current Debt-to-Equity of 0.17 is 240% above median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 0.40. The Software industry median Debt-to-Equity is 0.20. Spectra Systems' value of 0.17 is 15% below this industry median. Based on the distribution chart, Spectra Systems ranks #1036 out of 2243 companies in the Software industry, which is above the industry midpoint. Overall, Spectra Systems has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Spectra Systems' Debt-to-Equity compare to QH and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #1036 out of 2243 companies for Debt-to-Equity. This puts Spectra Systems in the upper half of its industry. The industry median Debt-to-Equity is 0.20. Spectra Systems' value of 0.17 is 15% below this benchmark. Historically, Spectra Systems' own Debt-to-Equity has ranged from 0.04 to 0.40 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 0.20, Spectra Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,243 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current Debt-to-Equity of 0.17 is 15% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Spectra Systems and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current Debt-to-Equity is 0.17, which is 240% above median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spectra Systems stock overvalued right now?
Spectra Systems (SCTQ) has a current Debt-to-Equity of 0.17. The stock's GF Value™ is $4.21, compared to a current price of $2.24 — trading 46.8% below its estimated fair value. The current Debt-to-Equity is 0.17, which is 240% above median its 10-year median of 0.05 and 15% below the Software industry median of 0.20. Spectra Systems' overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Spectra Systems (SCTQ), the current Debt-to-Equity is 0.17 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Spectra Systems (SCTQ) Overvalued in 2026?
Based on GuruFocus' analysis, Spectra Systems stock appears to be undervalued.
The current stock price of $2.24 is trading 46.8% below its estimated GF Value™ of $4.21.
Key valuation signals for SCTQ:
Debt-to-Equity: 0.17 (240% above median its 10-year median of 0.05)
GF Value™: $4.21 vs. price of $2.24 (46.8% below fair value)
Industry Position: 15% below the Software median (#1036 of 2243)
No single metric tells the full story. See the SCTQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spectra Systems Corp manufactures, and markets technology-based products used to authenticate and process banknotes and also offers secure software products for gaming. The company has divided its business into Authentication Systems, Security Printing, and Banknote Cleaning. The company derives maximum revenue from Authentication Systems that involve the hardware, software, and materials related to the authentication of banknotes, tax stamps, and other high-value goods.
73GF Score
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