Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $768.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.71
• Revenue Growth: -2.64%
• EPS Growth: -193.31%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.41
• Shares Outstanding: 49,325,370
• 10 Day Avg. Volume: 1,294,672
• 30 Day Avg. Volume: 1,163,742
• PEG Ratio: 5.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.78
• Price to Cash Flow (P/CF): 340.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.83
• Price Target Upside: 0.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Staar Surgical's overall stock score reflects its financial and operational challenges, particularly in China, which offset its strengths in other markets. While technical indicators suggest bearish momentum, recent leadership changes and growth outside China offer potential for future improvement.

Positive Factors

Business Growth

Performance in STAA’s business ex-China continues to do well, with Q4 ex-China revenue ahead of expectations and growth observed in the US business.

Financial Stability

The company has $230M in cash and equivalents with no debt, which will allow it to weather macroeconomic headwinds.

Leadership

The appointment of Stephen Farrell as CEO, who brings over 20 years of C-suite experience in healthcare and biotech industries, is expected to positively impact STAAR Surgical's strategic direction.

Negative Factors

China Market

China headwinds are worsening, impacting more than 50% of the company's sales.

Inventory Levels

The company disclosed elevated distributor inventory levels in China and expects minimal sales, further constraining visibility.

Market Challenges

Macroeconomic headwinds will continue to challenge demand for EVO, despite the high quality of the product.

Staar Surgical Business Overview & Revenue Model

Company Description

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides Visian implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia; and Hyperopic ICL, which treats far-sightedness. It also offers preloaded silicone cataract intraocular lenses and injector systems for use in cataract surgery. In addition, the company sells injector parts, and other related instruments and devices. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists. The company sells its products directly through its sales representatives in the United States, Japan, Germany, Spain, Canada, the United Kingdom, and Singapore, as well as through own representatives and independent distributors in China, Korea, India, France, Benelux, Italy, and internationally. STAAR Surgical Company was incorporated in 1982 and is headquartered in Lake Forest, California.

How the Company Makes Money

Staar Surgical generates revenue primarily through the sale of its implantable lens products, particularly its flagship Implantable Collamer Lenses (ICLs). These lenses are marketed to ophthalmologists and eye care professionals, who, in turn, offer the lenses to patients seeking vision correction solutions. The company benefits from a growing demand for refractive vision correction, driven by increasing global rates of myopia and the desire for alternatives to glasses and contact lenses. Staar Surgical also maintains strategic partnerships with eye care providers and clinics to enhance its market reach and adoption of its products. Furthermore, the company invests in research and development to continuously improve its product offerings and maintain a competitive edge in the ophthalmic sector. Revenue growth is influenced by factors such as new product launches, expansion into emerging markets, and increasing awareness of the benefits of ICLs over other vision correction methods.

Staar Surgical Financial Statement Overview

Summary

Staar Surgical's financial performance is mixed. The company has a strong balance sheet with low debt and a healthy equity position, but faces challenges in profitability as indicated by negative EBIT and EBITDA. Cash flow has improved but remains an area needing further growth.

Income Statement

Staar Surgical has faced challenges in recent financial periods, as highlighted by the negative EBIT and EBITDA in the latest year. Gross profit margins are solid, but the net profit margin has declined, indicating operational inefficiencies or increased costs. Revenue growth has been inconsistent, with a recent decline from the previous year.

Balance Sheet

The balance sheet shows a healthy equity position with a low debt-to-equity ratio, suggesting financial stability. The equity ratio is strong, indicating the company is well-capitalized. However, the return on equity has decreased due to declining net income, which may concern investors.

Cash Flow

Operating cash flow has improved, turning positive in the latest year, but free cash flow remains low. The operating cash flow to net income ratio indicates improved cash conversion. The overall cash flow position is stable, yet the growth rate of free cash flow needs to be addressed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement		Total Revenue
313.90M	322.42M	284.39M	230.47M	163.46M
	Gross Profit
239.58M	252.65M	223.38M	178.64M	118.36M
	EBIT
-12.61M	28.10M	43.80M	33.34M	6.77M
	EBITDA
-5.72M	33.22M	48.31M	36.98M	9.86M
	Net Income Common Stockholders
-20.21K	21.35M	39.66M	27.51M	5.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
230.49M	220.73M	211.64M	199.71M	152.45M
	Total Assets
509.52M	488.69M	415.15M	345.78M	257.42M
	Total Debt
38.74M	35.83M	31.04M	32.06M	10.80M
	Net Debt
-105.42M	-147.20M	-55.44M	-167.65M	-141.65M
	Total Liabilities
112.19M	102.74M	82.71M	87.22M	60.19M
	Stockholders Equity
397.33M	385.95M	332.44M	258.56M	197.22M
Cash Flow		Free Cash Flow
-7.67M	-3.59M	17.61M	30.32M	12.55M
	Operating Cash Flow
15.72M	14.59M	35.72M	43.96M	20.95M
	Investing Cash Flow
-59.22M	74.35M	-156.38M	-13.64M	-8.40M
	Financing Cash Flow
5.72M	7.42M	8.30M	17.79M	19.57M

Staar Surgical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STAA, the sentiment is Negative. The current price of 16.79 is below the 20-day moving average (MA) of 17.18, below the 50-day MA of 18.15, and below the 200-day MA of 28.53, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STAA.

Staar Surgical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	78 Outperform	$31.43B	25.28	25.65%	0.97%	9.38%	40.38%
ISRG	77 Outperform	$175.38B	76.96	15.62%	―	17.24%	27.76%
BLCO	55 Neutral	$4.03B	―	-4.76%	―	15.56%	-21.60%
MASI	55 Neutral	$8.19B	116.65	-25.23%	―	2.26%	-467.23%
STAA	51 Neutral	$768.00M	55.81	-5.16%	―	-2.64%	-193.31%
BAX	49 Neutral	$14.28B	136.07	-9.24%	3.30%	-14.00%	-184.82%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%

Staar Surgical Corporate Events

Staar Surgical Announces Leadership Realignment for Growth

On March 17, 2025, STAAR Surgical Company announced a realignment of its leadership structure to better address market needs and drive revenue growth. Warren Foust was promoted to President and Chief Operating Officer, while Magda Michna was appointed Chief Development Officer, taking on expanded responsibilities. Deborah Andrews returned as Interim Chief Financial Officer, replacing Patrick Williams, who stepped down. The changes aim to streamline operations, improve cost structure, and enhance shareholder value.

Staar Surgical Announces New Leadership Transition

On February 26, 2025, STAAR Surgical Company announced a leadership transition with Stephen C. Farrell appointed as the new President and CEO, succeeding Thomas G. Frinzi. The company also elected Elizabeth Yeu, M.D., as the new Board Chair. This change is expected to leverage Mr. Farrell’s extensive experience in the healthcare industry to navigate global macroeconomic challenges and drive the next phase of STAAR’s growth. The transition aims to enhance STAAR’s market position and capitalize on the growing demand for refractive surgery solutions, with Mr. Frinzi remaining in an advisory role to ensure a smooth transition.

Staar Surgical Reports Sales Decline Amid Economic Challenges

STAAR Surgical reported its financial results for the fourth quarter and fiscal year 2024, highlighting a decline in net sales due to weak macroeconomic conditions in China, the largest market for refractive procedures. The company’s overall performance was affected, with a net loss reported for the year. Despite this, STAAR experienced growth in ICL sales outside of China, with a 17% increase in the fourth quarter of 2024 and a 13% increase for the entire fiscal year. Looking forward, the company anticipates continued growth in global markets excluding China, while managing elevated inventory levels and planning for a potential market rebound in China during the second half of 2025.

Staar Surgical to Announce 2024 Financial Results

STAAR Surgical announced it will release its financial results for Q4 and fiscal year 2024 on February 19, 2025, after market close. The company reported double-digit global sales growth for its EVO ICL™ technology, except in China due to economic conditions affecting consumer confidence. The forthcoming Chinese New Year and recent stimulus are expected to impact STAAR’s 2025 outlook, which will be discussed in their earnings call.