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 Return-on-Tangible-Equity is 61.59% as of Dec. 2025, which is 143% above its 10-year median of 25.31. 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 2,476 Software companies, Spectra Systems ranks better than 85.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Spectra Systems's annualized net income for the quarter that ended in Dec. 2025 was $19.98 Mil. Spectra Systems's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $32.45 Mil. Therefore, Spectra Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 61.59%.
The historical rank and industry rank for Spectra Systems's Return-on-Tangible-Equity or its related term are showing as below:
SCTQ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.47 Med: 25.31 Max: 67.88
Current: 67.88
During the past 13 years, Spectra Systems's highest Return-on-Tangible-Equity was 67.88%. The lowest was 7.47%. And the median was 25.31%.
SCTQ's Return-on-Tangible-Equity is ranked better than 85.7% of 2476
companies
in the Software industry
Industry Median: 8.825
vs SCTQ: 67.88
Spectra Systems (OTCPK:SCTQ) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Spectra Systems Return-on-Tangible-Equity Related Terms
Spectra Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Spectra Systems's Return-on-Tangible-Equity 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.
SCTQ vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Spectra Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Spectra Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Spectra Systems's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 61.59% mean?
Spectra Systems (SCTQ) has a Return-on-Tangible-Equity of 61.59% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Spectra Systems and its competitors. This is 143% above median its historical median of 25.31. Over the past decade, Spectra Systems' Return-on-Tangible-Equity has ranged from 7.47 to 67.88. According to the industry distribution chart, Spectra Systems ranks #354 out of 2476 companies in the Software industry, placing it in the top 14.3%.
Is Spectra Systems' Return-on-Tangible-Equity too high?
Spectra Systems' current Return-on-Tangible-Equity of 61.59% is 143% above median its 10-year median of 25.31. Over the past 10 years, this metric has ranged from a low of 7.47 to a high of 67.88. The Software industry median Return-on-Tangible-Equity is 8.83. Spectra Systems' value of 61.59% is 597.9% above this industry median. Based on the distribution chart, Spectra Systems ranks #354 out of 2476 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' Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #354 out of 2476 companies for Return-on-Tangible-Equity. This places Spectra Systems in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.83. Spectra Systems' value of 61.59% is 597.9% above this benchmark. Historically, Spectra Systems' own Return-on-Tangible-Equity has ranged from 7.47 to 67.88 over the past decade. While the company's 10-year median is 25.31 vs. the industry median of 8.83, 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 Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,476 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current Return-on-Tangible-Equity of 61.59% is 597.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Spectra Systems and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current Return-on-Tangible-Equity is 61.59%, which is 143% above median its own 10-year median of 25.31. 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 Return-on-Tangible-Equity of 61.59%. 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 Return-on-Tangible-Equity is 61.59%, which is 143% above median its 10-year median of 25.31 and 597.9% above the Software industry median of 8.83. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Spectra Systems (SCTQ), the current Return-on-Tangible-Equity is 61.59% 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:
Return-on-Tangible-Equity: 61.59% (143% above median its 10-year median of 25.31)
GF Value™: $4.23 vs. price of $2.13 (49.6% below fair value)
Industry Position: 597.9% above the Software median (#354 of 2476)
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
Return-on-Tangible-Equity 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 
