Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $837.98M
• Dividend Yield: N/A
• Average Volume (3M): 794.78K
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.71
• Revenue Growth: -14.44%
• EPS Growth: -557.38%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.52
• Shares Outstanding: 49,526,130
• 10 Day Avg. Volume: 875,882
• 30 Day Avg. Volume: 794,780
• PEG Ratio: 0.99
• Price to Book (P/B): 7.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 132.29
• Enterprise Value/Market Cap: 2.71
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 11.01
• Enterprise Value/Ebitda: -117.02
• 1Y Price Target: $19.14
• Price Target Upside: 14.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 54 Neutral
• Price Target: $18.00 ▲(7.27%Upside)

The overall stock score reflects significant challenges in financial performance with declining revenues and negative margins as the most impactful factors. While corporate events and strategic initiatives provide a positive outlook, technical indicators and valuation metrics caution about potential risks. The company needs to address operational and profitability issues to improve investor sentiment.

Positive Factors

Global Sales Performance

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

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.

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 (STAA) is a leading provider in the healthcare sector, specializing in the development, manufacture, and marketing of implantable lenses for the eye. The company primarily focuses on developing products for vision correction, including implantable collamer lenses (ICLs) used to treat myopia, hyperopia, and astigmatism. STAAR Surgical's innovative lens technology provides an alternative to traditional vision correction methods such as glasses and contact lenses, catering to a global market.

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 profitability challenges with declining revenues and negative margins. While the balance sheet remains strong with low leverage, the negative cash flow and profitability metrics indicate operational pressures. The company needs to address revenue growth and cost management to improve financial health.

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
EBITDA	-75.74M	-5.72M	33.22M	48.31M	36.98M	9.86M
Net Income	-71.08M	-20.21M	21.35M	39.66M	27.51M	5.91M
Balance Sheet
Total Assets	457.36M	509.52M	488.69M	415.15M	345.78M	257.42M
Cash, Cash Equivalents and Short-Term Investments	222.76M	230.49M	220.73M	211.64M	199.71M	152.45M
Total Debt	36.68M	38.74M	35.83M	31.04M	32.06M	10.80M
Total Liabilities	107.39M	112.19M	102.74M	82.71M	87.22M	60.19M
Stockholders Equity	349.97M	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: Negative
• Last Price: 16.78
• 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 16.78 is below the 20-day moving average (MA) of 17.05, below the 50-day MA of 17.90, and below the 200-day MA of 22.88, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.96 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	85 Outperform	$37.41B	28.65	25.81%	0.83%	9.54%	37.23%
ISRG	76 Outperform	$191.29B	79.71	15.94%	―	19.08%	23.13%
MASI	63 Neutral	$9.12B	116.65	-23.93%	―	-0.12%	-713.82%
BLCO	62 Neutral	$4.38B	―	-5.56%	―	11.94%	-6.98%
BAX	60 Neutral	$15.60B	136.07	-8.96%	2.24%	-20.17%	-138.32%
STAA	54 Neutral	$837.98M	55.81	-19.14%	―	-14.44%	-557.38%
Sector *	51 Neutral	$7.44B	0.40	-61.90%	2.33%	17.14%	1.55%

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.