Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -32.42%
• EPS Growth: -540.37%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.34
• Shares Outstanding: 49,741,955
• 10 Day Avg. Volume: 1,674,294
• 30 Day Avg. Volume: 1,086,518
• PEG Ratio: 0.30
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 3.79
• P/FCF Ratio: -155.08
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 5.21
• Enterprise Value/Gross Profit: 7.05
• Enterprise Value/Ebitda: -22.15
• 1Y Price Target: $30.75
• Price Target Upside: 21.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.5
• Revenue Forecast (FY): $255.55M

• Rating: 46 Neutral
• Price Target: $25.00 ▼(-0.99% Downside)

Staar Surgical's overall stock score is primarily impacted by its financial performance and technical analysis. The company's financial challenges and bearish technical indicators weigh heavily on the score. The valuation is also weak due to negative earnings. However, the potential merger with Alcon offers a positive outlook, though it is not included in the weighted score due to the exclusion of corporate events.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance market reach and product offerings, supporting long-term revenue growth and competitive positioning.

Balance Sheet Health

A low debt-to-equity ratio provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Market Position

Being a key player in a growing market positions the company well for capturing future demand and sustaining revenue growth.

Negative Factors

Profitability Challenges

Sustained profitability challenges can hinder the company's ability to reinvest in its business and maintain competitive advantages.

Cash Flow Issues

Negative cash flow can strain liquidity and limit the company's ability to fund operations and strategic initiatives.

Merger Uncertainty

Legal uncertainties surrounding the merger could delay strategic plans and affect stakeholder confidence, impacting long-term stability.

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 lenses and related ophthalmic surgical products. The company's revenue model is built on direct sales to eye care professionals and clinics, as well as partnerships with ophthalmic surgeons who perform procedures using Staar's products. Key revenue streams include the sale of Visian ICL lenses, which are implanted in patients to correct vision, and ancillary products that support surgical procedures. Additionally, Staar Surgical benefits from strategic collaborations and distribution agreements that expand its market reach and enhance its product offerings, ultimately driving sales and contributing to its financial performance.

Staar Surgical Financial Statement Overview

Summary

Staar Surgical faces financial challenges with declining revenue growth and negative profitability metrics. Despite a stable balance sheet with low leverage, the income statement and cash flow statements highlight operational difficulties. The company must address these issues to improve financial health.

Income Statement

Staar Surgical's income statement reveals significant challenges, particularly in the TTM period. The company experienced a notable decline in revenue growth, with a negative growth rate of -19.59%. Profitability metrics such as the net profit margin and EBIT margin have turned negative, indicating operational difficulties. Historically, the company showed positive growth and margins, but recent performance suggests a downturn.

Balance Sheet

The balance sheet remains relatively stable, with a low debt-to-equity ratio of 0.12 in the TTM period, indicating conservative leverage. However, the return on equity has turned negative, reflecting the company's recent financial struggles. The equity ratio remains healthy, suggesting a solid capital structure despite recent profitability issues.

Cash Flow

Cash flow analysis shows mixed results. The TTM period indicates a significant improvement in free cash flow growth, yet operating cash flow remains negative, highlighting cash management challenges. The free cash flow to net income ratio is strong, suggesting efficient cash conversion, but the negative operating cash flow coverage ratio is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.59M	313.90M	322.42M	284.39M	230.47M	163.46M
Gross Profit	170.33M	239.58M	252.65M	223.38M	178.64M	118.36M
EBITDA	-54.23M	-5.72M	33.22M	48.31M	36.98M	9.86M
Net Income	-96.37M	-20.21M	21.35M	39.66M	27.51M	5.91M
Balance Sheet
Total Assets	456.36M	509.52M	488.69M	418.82M	345.78M	257.42M
Cash, Cash Equivalents and Short-Term Investments	192.66M	230.49M	220.73M	211.64M	199.71M	152.45M
Total Debt	39.12M	38.74M	35.83M	31.04M	32.06M	10.80M
Total Liabilities	102.58M	112.19M	102.74M	82.71M	87.22M	60.19M
Stockholders Equity	353.78M	397.33M	385.95M	336.11M	258.56M	197.22M
Cash Flow
Free Cash Flow	-39.54M	-7.67M	-3.59M	17.61M	30.32M	12.55M
Operating Cash Flow	-29.67M	15.72M	14.59M	35.72M	43.96M	20.95M
Investing Cash Flow	46.26M	-59.22M	74.35M	-156.38M	-13.64M	-8.40M
Financing Cash Flow	-4.62M	5.72M	7.42M	8.30M	17.79M	19.57M

Staar Surgical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 25.25 is below the 20-day moving average (MA) of 25.88, below the 50-day MA of 26.13, and above the 200-day MA of 21.86, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 24.70 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
COO	76 Outperform	$16.09B	43.80	4.59%	―	5.06%	-4.47%
HOLX	69 Neutral	$16.68B	30.20	11.12%	―	1.74%	-25.29%
STVN	67 Neutral	$5.68B	36.60	9.81%	0.29%	9.19%	23.06%
BLCO	61 Neutral	$6.12B	―	-4.69%	―	6.23%	17.53%
MASI	54 Neutral	$8.12B	―	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
STAA	46 Neutral	$1.20B	―	-24.65%	―	-32.42%	-540.37%

Staar Surgical Corporate Events

Staar Surgical Amends Merger Agreement with Alcon

On December 9, 2025, STAAR Surgical Company announced an amendment to its merger agreement with Alcon Research, LLC, increasing the cash consideration for its common stock from $28.00 to $30.75 per share. The amendment also outlines the conversion of restricted stock units to Alcon shares and the elimination of certain tax indemnification arrangements, potentially enhancing shareholder value and streamlining the merger process.

Staar Surgical Concludes Go-Shop Period with Alcon

On December 8, 2025, STAAR Surgical Company announced the expiration of its go-shop period, which ended on December 6, 2025, as part of its amended merger agreement with Alcon Inc. During this period, STAAR actively solicited acquisition proposals from 21 third parties but received no competing offers, validating the effectiveness of its board’s sale process. The outcome discredits allegations from Broadwood Partners, L.P. about ignored acquisition interest, confirming Alcon as the best buyer for STAAR.

Staar Surgical Amends Merger Agreement with Alcon

On November 7, 2025, STAAR Surgical Company announced an amendment to its merger agreement with Alcon Inc., introducing a 30-day go-shop period allowing STAAR to solicit third-party acquisition proposals. This amendment, which includes no termination fee for accepting a superior proposal and Alcon waiving matching rights, aims to maximize shareholder value by encouraging competitive offers. The special meeting of STAAR stockholders to vote on the merger proposal has been postponed to December 19, 2025, to accommodate this process.

Staar Surgical Postpones Stockholders Meeting Amid Merger Talks

On October 27, 2025, STAAR Surgical announced the postponement of its special meeting of stockholders, originally scheduled for November 6, 2025, to December 3, 2025, due to ongoing discussions with Alcon regarding a merger agreement. The new record date for voting eligibility is October 24, 2025. This delay reflects the company’s strategic considerations in finalizing the merger, which could significantly impact its market positioning and stakeholder interests.

STAAR Surgical Adjourns Stockholders Meeting for Merger

On October 23, 2025, STAAR Surgical announced the adjournment of its special stockholders meeting, originally scheduled for the same day, to November 6, 2025. This meeting is intended to vote on the merger agreement with Alcon, a global leader in eye care. The adjournment allows more time for stockholders to consider the merger proposal, which could significantly impact STAAR’s operations and market positioning.

STAAR Surgical Faces Legal Challenges in Alcon Merger

On August 4, 2025, STAAR Surgical Company entered into a merger agreement with Alcon, where STAAR will become a wholly owned subsidiary of Alcon. However, the merger has faced legal challenges as two lawsuits were filed by STAAR stockholders alleging misrepresentation in the proxy statement. Despite these challenges, STAAR plans to supplement the proxy statement to provide additional information to stockholders. The outcome of these legal matters remains uncertain, but STAAR believes the claims are without merit and aims to proceed with the merger to enhance shareholder value.

Staar Surgical Announces Proposed Merger with Alcon

On September 26, 2025, STAAR Surgical Company announced an investor presentation and press release regarding a proposed merger with Alcon, highlighting the merger’s potential to maximize value for stockholders. The Board of Directors believes the all-cash offer of $28.00 per share provides a significant premium and is the best strategic path forward, considering the company’s standalone challenges and lack of competing acquisition proposals over the past decade.