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Spectra SystemsSCTQ -3.18%76 Interest Coverage is 3,408.33 as of Dec. 2025, which is 37% below its 10-year median of 5,403.50. GuruFocus rates SCTQ with a GF Score™ of 76/100 and a GF Value™ of $4.23. The stock has 4 warning signs investors should review. Among 1,713 Software companies, Spectra Systems ranks better than 88.56% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Spectra Systems's
Operating Income
for the
six
months ended in Dec. 2025 was $10.23 Mil. Spectra Systems's Interest Expense for the
six
months ended in Dec. 2025 was $-0.00 Mil.
Spectra Systems's interest coverage for the quarter that ended in Dec. 2025 was 3,408.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Spectra Systems's Interest Coverage or its related term are showing as below:
SCTQ'
s Interest Coverage Range Over the Past 10 Years
Min: 57.83 Med: 5403.5 Max: No Debt
Current: 9006.5
SCTQ's Interest Coverage is ranked better than 88.56% of 1713
companies
in the Software industry
Industry Median: 24.62
vs SCTQ: 9006.50
Spectra Systems (OTCPK:SCTQ) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Spectra Systems Interest Coverage Related Terms
Spectra Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Spectra Systems's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SCTQ vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, Spectra Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Spectra Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Spectra Systems's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 3,408.33 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Spectra Systems and its competitors. This is 37% below median its historical median of 5,403.50. Over the past decade, Spectra Systems' Interest Coverage has ranged from 57.83 to 10,000.00. According to the industry distribution chart, Spectra Systems ranks #196 out of 1713 companies in the Software industry, placing it in the top 11.4%.
Is Spectra Systems' Interest Coverage too high?
Spectra Systems' current Interest Coverage of 3,408.33 is 37% below median its 10-year median of 5,403.50. Over the past 10 years, this metric has ranged from a low of 57.83 to a high of 10,000.00. The Software industry median Interest Coverage is 24.62. Spectra Systems' value of 3,408.33 is 13743.7% above this industry median. Based on the distribution chart, Spectra Systems ranks #196 out of 1713 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Spectra Systems has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Spectra Systems' Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #196 out of 1713 companies for Interest Coverage. This places Spectra Systems in the top 11% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.62. Spectra Systems' value of 3,408.33 is 13743.7% above this benchmark. Historically, Spectra Systems' own Interest Coverage has ranged from 57.83 to 10,000.00 over the past decade. While the company's 10-year median is 5,403.50 vs. the industry median of 24.62, Spectra Systems has consistently been above 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.62, based on 1,713 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current Interest Coverage of 3,408.33 is 13743.7% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Spectra Systems and its competitors. For the Software industry, the median Interest Coverage is 24.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current Interest Coverage is 3,408.33, which is 37% below median its own 10-year median of 5,403.50. 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 Interest Coverage of 3,408.33. The stock's GF Value™ is $4.23, compared to a current price of $2.13 — trading 49.6% below its estimated fair value. The current Interest Coverage is 3,408.33, which is 37% below median its 10-year median of 5,403.50 and 13743.7% above the Software industry median of 24.62. Spectra Systems' overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Spectra Systems (SCTQ), the current Interest Coverage is 3,408.33 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 $2.13 is trading 49.6% below its estimated GF Value™ of $4.23.
Key valuation signals for SCTQ:
Interest Coverage: 3,408.33 (37% below median its 10-year median of 5,403.50)
GF Value™: $4.23 vs. price of $2.13 (49.6% below fair value)
Industry Position: 13743.7% above the Software median (#196 of 1713)
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.
76GF Score
Get the complete analysis for SCTQ
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