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 SystemsLSE:SPSY -0.79%76 ROE % is 43.81% as of Dec. 2025, which is 134% above its 10-year median of 18.75. 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 2,683 Software companies, Spectra Systems ranks better than 94.97% on this metric.
The historical rank and industry rank for Spectra Systems's ROE % or its related term are showing as below:
LSE:SPSY'
s ROE % Range Over the Past 10 Years
Min: 5.47 Med: 18.75 Max: 46.29
Current: 46.29
During the past 13 years, Spectra Systems's highest ROE % was 46.29%. The lowest was 5.47%. And the median was 18.75%.
LSE:SPSY's ROE % is ranked better than 94.97% of 2683
companies
in the Software industry
Industry Median: 4.73
vs LSE:SPSY: 46.29
Spectra Systems (LSE:SPSY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Spectra Systems ROE % Related Terms
Spectra Systems ROE % Historical Data
* Premium members only.
The historical data trend for Spectra Systems's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Spectra Systems's ROE % distribution charts can be found below:
* The bar in red indicates where Spectra Systems's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Spectra Systems (LSE:SPSY) has a ROE % of 43.81% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Spectra Systems and its competitors. This is 134% above median its historical median of 18.75. Over the past decade, Spectra Systems' ROE % has ranged from 5.47 to 46.29. According to the industry distribution chart, Spectra Systems ranks #135 out of 2683 companies in the Software industry, placing it in the top 5%.
Is Spectra Systems' ROE % too high?
Spectra Systems' current ROE % of 43.81% is 134% above median its 10-year median of 18.75. Over the past 10 years, this metric has ranged from a low of 5.47 to a high of 46.29. The Software industry median ROE % is 4.73. Spectra Systems' value of 43.81% is 826.2% above this industry median. Based on the distribution chart, Spectra Systems ranks #135 out of 2683 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' ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #135 out of 2683 companies for ROE %. This places Spectra Systems in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Spectra Systems' value of 43.81% is 826.2% above this benchmark. Historically, Spectra Systems' own ROE % has ranged from 5.47 to 46.29 over the past decade. While the company's 10-year median is 18.75 vs. the industry median of 4.73, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.73, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current ROE % of 43.81% is 826.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Spectra Systems and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current ROE % is 43.81%, which is 134% above median its own 10-year median of 18.75. 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 ROE % is 43.81%, which is 134% above median its 10-year median of 18.75 and 826.2% above the Software industry median of 4.73. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Spectra Systems (LSE:SPSY), the current ROE % is 43.81% 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:
ROE %: 43.81% (134% above median its 10-year median of 18.75)
GF Value™: £3.72 vs. price of £1.88 (49.6% below fair value)
Industry Position: 826.2% above the Software median (#135 of 2683)
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
Get the complete analysis for LSE:SPSY
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:SPSY has been successfully added to your 
