Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $885.03M
• Dividend Yield: N/A
• Average Volume (3M): 856.17K
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.70
• Revenue Growth: -14.44%
• EPS Growth: -557.38%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.52
• Shares Outstanding: 49,526,130
• 10 Day Avg. Volume: 807,380
• 30 Day Avg. Volume: 856,167
• PEG Ratio: 0.05
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -64.70
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: -38.52
• 1Y Price Target: $19.14
• Price Target Upside: 7.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 52 Neutral
• Price Target: $17.50 ▼(-2.07%Downside)

Staar Surgical's stock score is primarily impacted by its weak financial performance and valuation metrics, driven by declining revenues and negative profitability. Technical analysis further indicates bearish trends. However, strategic initiatives and recent corporate events provide some optimism for future improvements.

Positive Factors

Financial Performance

Global sales excluding China were $3 million above estimates with 9% year-over-year growth.

Growth Strategy

New management is focused on its ability to drive long-term profitable growth and has undertaken meaningful cost reduction and restructuring initiatives.

Market Performance

There are signs that the refractive market in China has improved.

Negative Factors

Guidance Withdrawal

The company formally withdrew guidance given the macro uncertainty and the management transition.

Investor Concerns

FY25 guidance was not reiterated in the announcement, leading to potential investor concern.

Revenue Decline

Revenue in China declined to less than $0.5 million, though it is expected to see a return to growth in the future.

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 makes money primarily through the sale of its implantable collamer lenses (ICLs). The company's revenue model is driven by the production and distribution of these lenses to ophthalmologists and eye care professionals worldwide. Key revenue streams include direct sales to healthcare providers, partnerships with eye clinics, and distribution agreements in various countries. STAAR Surgical benefits from its strong brand reputation and technological advancements, which allow it to maintain competitive pricing and expand its market reach. Additionally, the company invests in research and development to continually improve its products, thereby driving further adoption and increasing its revenue potential.

Staar Surgical Financial Statement Overview

Summary

Staar Surgical's financial performance is under pressure due to declining revenues and negative margins. Despite a strong balance sheet with low leverage, negative cash flow and profitability metrics indicate significant operational challenges.

Income Statement

The company has shown a decline in revenue, with a decrease from $313.9 million in the previous annual report to $279.1 million TTM. Gross profit margin for TTM stands at 74.0%, which is strong but has decreased from 76.3% in the last annual report. Net profit margin is concerning at -25.5% TTM, reflecting a challenging profitability scenario compared to -6.4% in the prior year. EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

Staar Surgical maintains a strong equity base with a debt-to-equity ratio of 0.10 TTM, indicating low leverage. The equity ratio is robust at 76.5%, suggesting a solid capital structure. However, the return on equity (ROE) is negative at -20.3% TTM, reflecting the negative net income and impacting shareholder returns.

Cash Flow

The company's cash flow position is under pressure with a negative free cash flow of -$13.7 million TTM, worsening from -$7.7 million in the previous period. Operating cash flow to net income ratio is negative, highlighting cash flow challenges. Despite these issues, the ability to maintain cash reserves is notable.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement		Total Revenue
279.13M	313.90M	322.42M	284.39M	230.47M	163.46M
	Gross Profit
206.55M	239.58M	252.65M	223.38M	178.64M	118.36M
	EBIT
-67.73M	-12.61M	28.10M	43.80M	33.34M	6.77M
	EBITDA
-75.74M	-5.72M	33.22M	48.31M	36.98M	9.86M
	Net Income Common Stockholders
-71.08M	-20.21M	21.35M	39.66M	27.51M	5.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
199.71M	230.49M	220.73M	211.64M	199.71M	152.45M
	Total Assets
345.78M	509.52M	488.69M	415.15M	345.78M	257.42M
	Total Debt
32.06M	38.74M	35.83M	31.04M	32.06M	10.80M
	Net Debt
-167.65M	-105.42M	-147.20M	-55.44M	-167.65M	-141.65M
	Total Liabilities
87.22M	112.19M	102.74M	82.71M	87.22M	60.19M
	Stockholders Equity
258.56M	397.33M	385.95M	332.44M	258.56M	197.22M
Cash Flow		Free Cash Flow
-13.68M	-7.67M	-3.59M	17.61M	30.32M	12.55M
	Operating Cash Flow
-11.69M	15.72M	14.59M	35.72M	43.96M	20.95M
	Investing Cash Flow
-40.05M	-59.22M	74.35M	-156.38M	-13.64M	-8.40M
	Financing Cash Flow
720.00K	5.72M	7.42M	8.30M	17.79M	19.57M

Staar Surgical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STAA, the sentiment is Neutral. The current price of 17.87 is below the 20-day moving average (MA) of 18.35, above the 50-day MA of 17.81, and below the 200-day MA of 24.04, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 36.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STAA.

Staar Surgical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	85 Outperform	$36.98B	28.32	25.81%	0.84%	9.54%	37.23%
ISRG	78 Outperform	$199.67B	81.71	15.94%	―	19.08%	23.13%
BAX	57 Neutral	$15.53B	136.07	-8.96%	2.64%	-20.17%	-138.32%
MASI	57 Neutral	$9.32B	116.65	-23.93%	―	-0.12%	-713.82%
BLCO	57 Neutral	$4.13B	―	-5.56%	―	11.94%	-6.98%
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
STAA	52 Neutral	$885.03M	55.81	-19.14%	―	-14.44%	-557.38%

Staar Surgical Corporate Events

Staar Surgical to Present Strategic Plans to Investors

STAAR Surgical Company announced that its representatives will present to investors starting June 4, 2025, sharing insights on their strategic plans and financial performance. The presentation will highlight the company’s focus on innovative vision correction technologies and its commitment to addressing global myopia, with implications for continued growth and market leadership.

The most recent analyst rating on (STAA) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Staar Surgical stock, see the STAA Stock Forecast page.

STAAR Surgical Announces $30 Million Share Buyback

On May 16, 2025, STAAR Surgical announced a $30 million share repurchase program, reflecting the board’s confidence in the company’s future and commitment to shareholder value. Additionally, on May 14, 2025, STAAR received approval from China’s National Medical Products Administration for its EVO+ Toric Implantable Collamer Lens, enhancing its market presence in China and aligning with its strategic priorities.

The most recent analyst rating on (STAA) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Staar Surgical stock, see the STAA Stock Forecast page.

STAAR Surgical Reports Q1 2025 Financial Results

On May 7, 2025, STAAR Surgical reported its financial results for the first quarter ending March 28, 2025, revealing a 45% year-over-year decline in net sales to $42.6 million, primarily due to reduced channel inventory in China. Despite this, sales outside China grew by 9%, and the company implemented cost controls and restructuring to align expenses with sales, aiming to resume growth in revenue and Adjusted EBITDA in the second half of the year. The company is also mitigating tariff impacts through consignment agreements in China and expanding manufacturing capabilities in Switzerland. Regulatory approvals in Taiwan and Brazil for its EVO/EVO+ ICLs further strengthen its market position, although the company withdrew its previous financial outlook due to global economic uncertainties and evolving tariff policies.

Staar Surgical Announces Board Changes and New Advisor

On April 24, 2025, STAAR Surgical Company announced changes to its Board of Directors, appointing Louis E. Silverman as a director and noting that Aimee S. Weisner will not seek re-election. Wei Jiang will serve as a special strategic advisor to the Asia Pacific business, focusing on strengthening operations in the region. These changes aim to enhance STAAR’s strategic positioning and operational efficiency, particularly in the Asia Pacific market, amid evolving global tariff environments and distribution challenges.

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.