Spectra SystemsLSE:SPSY 76 Operating Margin % is 34.88% as of Dec. 2025, which is 2% above its 10-year median of 34.05. GuruFocus rates LSE:SPSY with a GF Score™ of 76/100 and a GF Value™ of £3.83 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Spectra Systems ranks better than 97.02% on this metric.
Spectra Systems (LSE:SPSY) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Spectra Systems Operating Margin % Related Terms
Spectra Systems Operating Margin % Historical Data
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The historical data trend for Spectra Systems's Operating 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.
LSE:SPSY vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Spectra Systems's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Spectra Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Spectra Systems's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Spectra Systems's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (LSE:SPSY) has a Operating Margin % of 34.88% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Spectra Systems and its competitors. This is near median its historical median of 34.05. Over the past decade, Spectra Systems' Operating Margin % has ranged from 9.82 to 37.81. According to the industry distribution chart, Spectra Systems ranks #84 out of 2818 companies in the Software industry, placing it in the top 3%.
Is Spectra Systems' Operating Margin % too high?
Spectra Systems' current Operating Margin % of 34.88% is near median its 10-year median of 34.05. Over the past 10 years, this metric has ranged from a low of 9.82 to a high of 37.81. The Software industry median Operating Margin % is 3.88. Spectra Systems' value of 34.88% is 800.1% above this industry median. Based on the distribution chart, Spectra Systems ranks #84 out of 2818 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 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Spectra Systems' Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #84 out of 2818 companies for Operating Margin %. This places Spectra Systems in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Spectra Systems' value of 34.88% is 800.1% above this benchmark. Historically, Spectra Systems' own Operating Margin % has ranged from 9.82 to 37.81 over the past decade. While the company's 10-year median is 34.05 vs. the industry median of 3.88, 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current Operating Margin % of 34.88% is 800.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Spectra Systems and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current Operating Margin % is 34.88%, which is near median its own 10-year median of 34.05. 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?
Based on GuruFocus' analysis, Spectra Systems (LSE:SPSY) is currently considered Possible Value Trap. The stock's GF Value™ is £3.83, compared to a current price of £1.85 — trading 51.7% below its estimated fair value. The current Operating Margin % is 34.88%, which is near median its 10-year median of 34.05 and 800.1% above the Software industry median of 3.88. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Spectra Systems (LSE:SPSY), the current Operating Margin % is 34.88% 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 (LSE:SPSY) Overvalued in 2026?
Based on GuruFocus' analysis, Spectra Systems stock appears to be undervalued.
The current stock price of £1.85 is trading 51.7% below its estimated GF Value™ of £3.83.
GuruFocus considers Spectra Systems to be Possible Value Trap.
Key valuation signals for LSE:SPSY:
Operating Margin %: 34.88% (near median its 10-year median of 34.05)
GF Value™: £3.83 vs. price of £1.85 (51.7% below fair value)
Industry Position: 800.1% above the Software median (#84 of 2818)
No single metric tells the full story. See the LSE:SPSY 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
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