Spectra Systems Corporation (SCTQ): fair value, margin of safety and Wheel Score

Is SCTQ undervalued?

At 2.41 (close of 5 Nov 2026), SCTQ trades 76% below the GLS average fair value of 10.08. That average comes from 9 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Spectra Systems Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

There is a wide gap between DDM (2.04) and DCF (35.61). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

Ranked against every other company we cover, neither cheapness nor growth clearly wins for SCTQ, so the nightly engine files it under Blend (value score 67, growth score 86, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for SCTQ

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Spectra Systems Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 8.7/10 puts SCTQ among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.

Returns on capital are high - ROIC 33.7%, ROE 39.5%, ROA 27.7% - with debt at 0.17 times equity and a free-cash-flow yield of 9.4%.

The dividend yield is high at 5.81% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 37: No options

No options are listed on Spectra Systems Corporation in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 37, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 0k shares a day on a market cap of $115M, with a beta of 0.01 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for SCTQ in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Software - Application

The 12 companies below are the closest to Spectra Systems Corporation by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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