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Spectra SystemsLSE:SPSY -0.79%76 Pretax Margin % is 43.50% as of Dec. 2025, which is 24% above its 10-year median of 34.97. GuruFocus rates LSE:SPSY with a GF Score™ of 76/100 and a GF Value™ of £3.72 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,827 Software companies, Spectra Systems ranks better than 96.67% on this metric.
The historical rank and industry rank for Spectra Systems's Pretax Margin % or its related term are showing as below:
LSE:SPSY'
s Pretax Margin % Range Over the Past 10 Years
Min: 10.24 Med: 34.97 Max: 41.72
Current: 41.72
LSE:SPSY's Pretax Margin % is ranked better than 96.67% of 2827
companies
in the Software industry
Industry Median: 3.55
vs LSE:SPSY: 41.72
Spectra Systems (LSE:SPSY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Spectra Systems Pretax Margin % Related Terms
Spectra Systems Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Spectra Systems's Pretax 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 UBER, SHOP, CRM: Pretax Margin % Comparison
For the Software - Application subindustry, Spectra Systems's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Spectra Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Spectra Systems's Pretax 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 (LSE:SPSY) has a Pretax Margin % of 43.50% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Spectra Systems and its competitors. This is 24% above median its historical median of 34.97. Over the past decade, Spectra Systems' Pretax Margin % has ranged from 10.24 to 41.72. According to the industry distribution chart, Spectra Systems ranks #94 out of 2827 companies in the Software industry, placing it in the top 3.3%.
Is Spectra Systems' Pretax Margin % too high?
Spectra Systems' current Pretax Margin % of 43.50% is 24% above median its 10-year median of 34.97. Over the past 10 years, this metric has ranged from a low of 10.24 to a high of 41.72. The Software industry median Pretax Margin % is 3.55. Spectra Systems' value of 43.50% is 1125.4% above this industry median. Based on the distribution chart, Spectra Systems ranks #94 out of 2827 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' Pretax Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #94 out of 2827 companies for Pretax Margin %. This places Spectra Systems in the top 3% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.55. Spectra Systems' value of 43.50% is 1125.4% above this benchmark. Historically, Spectra Systems' own Pretax Margin % has ranged from 10.24 to 41.72 over the past decade. While the company's 10-year median is 34.97 vs. the industry median of 3.55, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.55, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current Pretax Margin % of 43.50% is 1125.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Spectra Systems and its competitors. For the Software industry, the median Pretax Margin % is 3.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current Pretax Margin % is 43.50%, which is 24% above median its own 10-year median of 34.97. 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 £3.72, compared to a current price of £1.88 — trading 49.6% below its estimated fair value. The current Pretax Margin % is 43.50%, which is 24% above median its 10-year median of 34.97 and 1125.4% above the Software industry median of 3.55. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Spectra Systems (LSE:SPSY), the current Pretax Margin % is 43.50% 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 £1.88 is trading 49.6% below its estimated GF Value™ of £3.72.
GuruFocus considers Spectra Systems to be Possible Value Trap.
Key valuation signals for LSE:SPSY:
Pretax Margin %: 43.50% (24% above median its 10-year median of 34.97)
GF Value™: £3.72 vs. price of £1.88 (49.6% below fair value)
Industry Position: 1125.4% above the Software median (#94 of 2827)
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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