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Spectra SystemsLSE:SPSY -1.79%73 5-Year Yield-on-Cost % is 5.80 as of Aug. 08, 2026, which is 34% above its 10-year median of 4.32. GuruFocus rates LSE:SPSY with a GF Score™ of 73/100 and a GF Value™ of £3.57 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,009 Software companies, Spectra Systems ranks better than 73.04% on this metric.
Spectra Systems's yield on cost for the quarter that ended in Dec. 2025 was 5.80.
The historical rank and industry rank for Spectra Systems's 5-Year Yield-on-Cost % or its related term are showing as below:
LSE:SPSY'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.62 Med: 4.32 Max: 7.31
Current: 5.8
During the past 13 years, Spectra Systems's highest Yield on Cost was 7.31. The lowest was 2.62. And the median was 4.32.
LSE:SPSY's 5-Year Yield-on-Cost % is ranked better than 73.04% of 1009
companies
in the Software industry
Industry Median: 3.04
vs LSE:SPSY: 5.80
Spectra Systems (LSE:SPSY) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Spectra Systems 5-Year Yield-on-Cost % Related Terms
LSE:SPSY vs QH, SHOP, UBER: 5-Year Yield-on-Cost % Comparison
For the Software - Application subindustry, Spectra Systems's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Spectra Systems's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Spectra Systems's 5-Year Yield-on-Cost % falls into.
Spectra Systems 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Spectra Systems is calculated as
Spectra Systems (LSE:SPSY) has a 5-Year Yield-on-Cost % of 5.80 as of Aug. 08, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Spectra Systems and its competitors. This is 34% above median its historical median of 4.32. Over the past decade, Spectra Systems' 5-Year Yield-on-Cost % has ranged from 2.62 to 7.31. According to the industry distribution chart, Spectra Systems ranks #272 out of 1009 companies in the Software industry, placing it in the top 27%.
Is Spectra Systems' 5-Year Yield-on-Cost % too high?
Spectra Systems' current 5-Year Yield-on-Cost % of 5.80 is 34% above median its 10-year median of 4.32. Over the past 10 years, this metric has ranged from a low of 2.62 to a high of 7.31. The Software industry median 5-Year Yield-on-Cost % is 3.04. Spectra Systems' value of 5.80 is 90.8% above this industry median. Based on the distribution chart, Spectra Systems ranks #272 out of 1009 companies in the Software industry, which is above the industry midpoint. Overall, Spectra Systems has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Spectra Systems' 5-Year Yield-on-Cost % compare to QH and SHOP?
According to the Software industry distribution chart, Spectra Systems ranks #272 out of 1009 companies for 5-Year Yield-on-Cost %. This puts Spectra Systems in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.04. Spectra Systems' value of 5.80 is 90.8% above this benchmark. Historically, Spectra Systems' own 5-Year Yield-on-Cost % has ranged from 2.62 to 7.31 over the past decade. While the company's 10-year median is 4.32 vs. the industry median of 3.04, 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.04, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectra Systems's current 5-Year Yield-on-Cost % of 5.80 is 90.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Spectra Systems and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectra Systems's current 5-Year Yield-on-Cost % is 5.80, which is 34% above median its own 10-year median of 4.32. 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 £3.57, compared to a current price of £1.65 — trading 53.9% below its estimated fair value. The current 5-Year Yield-on-Cost % is 5.80, which is 34% above median its 10-year median of 4.32 and 90.8% above the Software industry median of 3.04. Spectra Systems' overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Spectra Systems (LSE:SPSY), the current 5-Year Yield-on-Cost % is 5.80 as of Aug. 08, 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 Spectra Systems (LSE:SPSY) Overvalued in 2026?
Based on GuruFocus' analysis, Spectra Systems stock appears to be undervalued.
The current stock price of £1.65 is trading 53.9% below its estimated GF Value™ of £3.57.
GuruFocus considers Spectra Systems to be Possible Value Trap.
Key valuation signals for LSE:SPSY:
5-Year Yield-on-Cost %: 5.80 (34% above median its 10-year median of 4.32)
GF Value™: £3.57 vs. price of £1.65 (53.9% below fair value)
Industry Position: 90.8% above the Software median (#272 of 1009)
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.
73GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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