Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Spectra SystemsSCTQ -3.18%76 Net Margin % is 34.08% as of Dec. 2025, which is 9% above its 10-year median of 31.16. 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 2,829 Software companies, Spectra Systems ranks better than 95.86% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Spectra Systems's Net Income for the
six
months ended in Dec. 2025 was $9.99 Mil. Spectra Systems's Revenue for the
six
months ended in Dec. 2025 was $29.32 Mil. Therefore, Spectra Systems's net margin for the quarter that ended in Dec. 2025 was 34.08%.
The historical rank and industry rank for Spectra Systems's Net Margin % or its related term are showing as below:
SCTQ'
s Net Margin % Range Over the Past 10 Years
Min: 10.24 Med: 31.16 Max: 34.91
Current: 31.22
SCTQ's Net Margin % is ranked better than 95.86% of 2829
companies
in the Software industry
Industry Median: 2.53
vs SCTQ: 31.22
Spectra Systems (OTCPK:SCTQ) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Spectra Systems Net Margin % Related Terms
Spectra Systems Net Margin % Historical Data
* Premium members only.
The historical data trend for Spectra Systems's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Spectra Systems's Net Margin % distribution charts can be found below:
* The bar in red indicates where Spectra Systems's Net Margin % 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 Net Margin % of 34.08% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Spectra Systems and its competitors. This is near median its historical median of 31.16. Over the past decade, Spectra Systems' Net Margin % has ranged from 10.24 to 34.91. According to the industry distribution chart, Spectra Systems ranks #117 out of 2829 companies in the Software industry, placing it in the top 4.1%.
Is Spectra Systems' Net Margin % too high?
Spectra Systems' current Net Margin % of 34.08% is near median its 10-year median of 31.16. Over the past 10 years, this metric has ranged from a low of 10.24 to a high of 34.91. The Software industry median Net Margin % is 2.53. Spectra Systems' value of 34.08% is 1247% above this industry median. Based on the distribution chart, Spectra Systems ranks #117 out of 2829 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' Net Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #117 out of 2829 companies for Net Margin %. This places Spectra Systems in the top 4% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.53. Spectra Systems' value of 34.08% is 1247% above this benchmark. Historically, Spectra Systems' own Net Margin % has ranged from 10.24 to 34.91 over the past decade. While the company's 10-year median is 31.16 vs. the industry median of 2.53, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.53, based on 2,829 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current Net Margin % of 34.08% is 1247% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Spectra Systems and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current Net Margin % is 34.08%, which is near median its own 10-year median of 31.16. 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 Net Margin % of 34.08%. 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 Net Margin % is 34.08%, which is near median its 10-year median of 31.16 and 1247% above the Software industry median of 2.53. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Spectra Systems (SCTQ), the current Net Margin % is 34.08% 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:
Net Margin %: 34.08% (near median its 10-year median of 31.16)
GF Value™: $4.23 vs. price of $2.13 (49.6% below fair value)
Industry Position: 1247% above the Software median (#117 of 2829)
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
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SCTQ has been successfully added to your 
