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SPARQ Systems has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
SPARQ Systems did not have earnings to cover the interest expense.
SPARQ Systems's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.09.
As of today, SPARQ Systems's Altman Z-Score is 33.75.
SPARQ Systems (OTCPK:SPRQF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
SPARQ Systems has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
SPARQ Systems Financial Strength Related Terms
SPRQF vs VRT, BE: Financial Strength Comparison
For the Electrical Equipment & Parts subindustry, SPARQ Systems's Financial Strength, along with its competitors' market caps and Financial Strength 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.
SPARQ Systems Financial Strength vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SPARQ Systems's Financial Strength distribution charts can be found below:
* The bar in red indicates where SPARQ Systems's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
SPARQ Systems has a Z-score of 33.75, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 33.75 is strong.
* 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.
SPARQ Systems (SPRQF) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on SPARQ Systems and its competitors. This is near median its historical median of 8.00. Over the past decade, SPARQ Systems' Financial Strength has ranged from 3.00 to 9.00.
Is SPARQ Systems' Financial Strength too high?
SPARQ Systems' current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 9.00. Overall, SPARQ Systems has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SPARQ Systems' Financial Strength compare to VRT and BE?
SPARQ Systems' Financial Strength of 8 can be compared against companies in the Industrial Products industry. Historically, SPARQ Systems' own Financial Strength has ranged from 3.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on SPARQ Systems and its competitors. SPARQ Systems's current Financial Strength is 8, which is near median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPARQ Systems stock overvalued right now?
Based on GuruFocus' analysis, SPARQ Systems (SPRQF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.16, compared to a current price of $0.72 — trading 37.9% below its estimated fair value. The current Financial Strength is 8, which is near median its 10-year median of 8.00. SPARQ Systems' overall GF Score™ is 53/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For SPARQ Systems (SPRQF), the current Financial Strength is 8 as of Jun. 2026. 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 SPARQ Systems (SPRQF) Overvalued in 2026?
Based on GuruFocus' analysis, SPARQ Systems stock appears to be undervalued.
The current stock price of $0.72 is trading 37.9% below its estimated GF Value™ of $1.16.
GuruFocus considers SPARQ Systems to be Possible Value Trap.
Key valuation signals for SPRQF:
Financial Strength: 8 (near median its 10-year median of 8.00)
GF Value™: $1.16 vs. price of $0.72 (37.9% below fair value)
No single metric tells the full story. See the SPRQF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SPARQ Systems Inc designs and manufactures next generation single-phase microinverters for residential and commercial solar electric applications. The company has developed a proprietary photovoltaic (PV) solution called the Quad; the Quad inverter optimizes four PV modules with a single microinverter, simplifying design and installation, and lowering cost for solar power installations when compared to existing market offerings. Its products include Quad2, Quad3, Q1200 Microinverter, SparqLinq, SparqVu, and SparqSync. The company derives revenue from the sale of hardware, including microinverters and their associated peripherals.
53GF Score
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