Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $905.09M
• Dividend Yield: N/A
• Average Volume (3M): 711.96K
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.66
• Revenue Growth: -14.44%
• EPS Growth: -557.38%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.52
• Shares Outstanding: 49,526,130
• 10 Day Avg. Volume: 628,171
• 30 Day Avg. Volume: 711,960
• PEG Ratio: 0.05
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -61.56
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: -35.95
• 1Y Price Target: $19.29
• Price Target Upside: 5.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 51 Neutral
• Price Target: $17.50 ▼(-4.27%Downside)

STAAR Surgical's overall stock score is influenced most by its financial performance, which is currently challenged by declining revenues and negative margins. Technical indicators reflect bearish sentiment, while valuation metrics are hindered by negative earnings. On a positive note, strategic initiatives and cost management efforts were highlighted in the earnings call and corporate events, providing some optimism for future recovery.

Positive Factors

Management Strategy

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

Market Recovery

The company is seeing early signs that the Chinese market may be on the mend, which should lead to a rebound in the back half of the year.

Negative Factors

Earnings Decline

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

Guidance Withdrawal

STAA's withdrawal of its 2025 guidance, while understandable, came as a surprise to some, leading the stock to indicate down between 3% and 8%.

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 faces substantial profitability challenges with declining revenues and negative margins. The balance sheet remains robust with low leverage, but negative cash flow and profitability metrics indicate operational pressures. Improvements in revenue growth and cost management are necessary.

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	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
EBITDA	-5.72M	33.22M	48.31M	36.98M	9.86M
Net Income	-20.21M	21.35M	39.66M	27.51M	5.91M
Balance Sheet
Total Assets	509.52M	488.69M	415.15M	345.78M	257.42M
Cash, Cash Equivalents and Short-Term Investments	230.49M	220.73M	211.64M	199.71M	152.45M
Total Debt	38.74M	35.83M	31.04M	32.06M	10.80M
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: Positive
• Last Price: 18.28
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 18.28 is above the 20-day moving average (MA) of 17.23, above the 50-day MA of 17.65, and below the 200-day MA of 21.74, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 69.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STAA.

Staar Surgical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	83 Outperform	$37.82B	28.96	25.81%	0.79%	9.54%	37.23%
ISRG	78 Outperform	$185.88B	75.71	15.97%	―	19.08%	23.13%
BLCO	64 Neutral	$4.91B	―	-5.56%	―	11.94%	-6.98%
MASI	60 Neutral	$8.58B	116.65	-23.93%	―	-0.12%	-713.82%
BAX	56 Neutral	$14.12B	136.07	-8.96%	3.96%	-20.17%	-138.32%
Sector *	52 Neutral	$7.46B	-0.04	-63.82%	2.49%	16.43%	<0.01%
STAA	51 Neutral	$905.09M	55.81	-19.14%	―	-14.44%	-557.38%

Staar Surgical Corporate Events

Staar Surgical Appoints Deborah Andrews as CFO

On June 25, 2025, STAAR Surgical announced the appointment of Deborah Andrews as Chief Financial Officer, effective immediately. Andrews, who previously served as interim CFO since March 2025 and held various roles at STAAR, brings extensive experience and is expected to enhance financial and operational rigor. Additionally, STAAR established a new Capital Stewardship Committee to guide financial strategies, chaired by Lilian Y. Zhou, aiming to improve capital management and shareholder value. The company also restructured its investor relations function, resulting in the departure of Brian Moore, Vice President of Investor Relations and Corporate Development.

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 Holds Annual Shareholders Meeting

On June 18, 2025, STAAR Surgical Company held its Annual Meeting of Shareholders where three proposals were voted upon. The shareholders elected six directors for terms expiring at the 2026 Annual Meeting, ratified the appointment of BDO USA, P.C. as the independent accounting firm for the fiscal year ending January 2, 2026, and approved the compensation of the Company’s executive officers on a non-binding advisory basis.

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 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.