Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $951.89M
• Dividend Yield: N/A
• Average Volume (3M): 965.63K
• 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: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.52
• Shares Outstanding: 49,526,130
• 10 Day Avg. Volume: 1,159,924
• 30 Day Avg. Volume: 965,627
• PEG Ratio: 1.30
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 96.18
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 10.77
• 1Y Price Target: $18.83
• Price Target Upside: -2.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

STAA's overall stock score is 52, reflecting significant challenges in financial performance with declining revenues and negative profitability. The balance sheet is a strength, showing low leverage. Technical indicators are mixed, indicating uncertainty. Valuation concerns arise due to negative earnings, and while there are strategic efforts underway to address these issues, the immediate outlook remains cautious.

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.

Product Development

Staar highlighted the attractiveness of its proprietary collamer material and noted that there may be opportunities to apply it in ophthalmologic therapeutic settings in the future.

Regional Performance

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

Negative Factors

Guidance Withdrawal

STAA withdrew its 2025 guidance.

Inventory Concerns

Shares are expected to remain pressured for the foreseeable future due to significant inventory in the channel.

Macroeconomic Challenges

The lack of clarity on a recovery remains an open-ended question due to macro challenges within China.

Staar Surgical Business Overview & Revenue Model

Company Description

Staar Surgical (STAA) is a leading medical device company that specializes in the design, development, manufacture, and marketing of implantable lenses for the eye. The company operates primarily in the ophthalmic sector, offering products that are intended to provide visual improvement by correcting refractive errors such as myopia, hyperopia, and astigmatism. Staar Surgical is recognized for its innovative Implantable Collamer Lenses (ICLs), which serve as an alternative to traditional corrective lenses and surgical procedures, enhancing vision without the removal of corneal tissue.

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 exhibits a mixed financial performance. The income statement reveals challenges with negative EBIT and EBITDA and inconsistent revenue growth. The balance sheet is strong with low debt-to-equity but declining return on equity due to decreased net income. Cash flow has improved, yet free cash flow growth remains a concern.

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
-20.21M	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: Positive
• Last Price: 19.22
• 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 Positive. The current price of 19.22 is above the 20-day moving average (MA) of 18.48, above the 50-day MA of 17.77, and below the 200-day MA of 25.44, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 27.26 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	85 Outperform	$36.90B	28.26	25.81%	0.82%	9.54%	37.23%
ISRG	78 Outperform	$202.00B	82.67	15.94%	―	19.08%	23.13%
MASI	58 Neutral	$8.44B	116.65	-23.93%	―	-0.12%	-713.82%
BLCO	57 Neutral	$4.16B	―	-5.56%	―	11.94%	-6.98%
BAX	56 Neutral	$16.25B	136.07	-8.96%	2.90%	-20.17%	-138.32%
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
STAA	52 Neutral	$951.89M	55.81	-19.14%	―	-14.44%	-557.38%

Staar Surgical Corporate Events

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.

Spark’s Take on STAA Stock

According to Spark, TipRanks’ AI Analyst, STAA is a Neutral.

STAAR Surgical currently faces significant challenges with declining revenues, negative cash flow, and profitability issues, especially impacted by sales decline in China. The technical analysis shows uncertainty with no strong trends, while valuation concerns arise from negative earnings. Leadership changes and strategic initiatives offer potential for improvement, but immediate financial recovery remains uncertain.

To see Spark’s full report on STAA stock, click here.

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.

Spark’s Take on STAA Stock

According to Spark, TipRanks’ AI Analyst, STAA is a Neutral.

Staar Surgical is facing significant challenges, particularly in China, impacting overall financial performance. While there is growth potential outside China, the current financial metrics and technical indicators point to caution. The valuation remains a concern due to negative earnings. Leadership changes could provide strategic direction, but the impact remains to be seen.

To see Spark’s full report on STAA stock, click here.

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.

Spark’s Take on STAA Stock

According to Spark, TipRanks’ AI Analyst, STAA is a Neutral.

Staar Surgical is facing significant challenges, particularly in China, impacting overall financial performance. While there is growth potential outside China, the current financial metrics and technical indicators point to caution. The valuation remains a concern due to negative earnings. Leadership changes could provide strategic direction, but the impact remains to be seen.

To see Spark’s full report on STAA stock, click here.

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.