Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.88
• Revenue Growth: -32.59%
• EPS Growth: -667.81%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.34
• Shares Outstanding: 49,553,036
• 10 Day Avg. Volume: 5,688,755
• 30 Day Avg. Volume: 2,301,949
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: -9.40
• 1Y Price Target: $25.38
• Price Target Upside: -10.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 56 Neutral
• Price Target: $29.00 ▲(2.80% Upside)

Staar Surgical's overall stock score is primarily impacted by financial struggles, with declining revenues and negative margins being significant concerns. Technical analysis shows bullish momentum, but valuation remains weak due to negative profitability. The earnings call provides some optimism with strategic initiatives, but challenges in China and profitability issues weigh heavily.

Positive Factors

China Market Recovery

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

Financial Performance

STAA's 2Q25 revenue beat consensus with growth of 10%.

Strategic Acquisition

The acquisition makes sense strategically, and valuation appears attractive for a differentiated technology.

Negative Factors

Dilutive Acquisition Impact

The deal will be dilutive in the first year and modestly accretive in the second year.

Macro Uncertainty

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

US and Japan Market Softness

In-line ex-China sales was the main neutral/negative — softness came from the US and Japan.

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 lens products, which are sold to ophthalmic surgeons and healthcare providers. The company also earns income from related services, including training and support for medical professionals. Key revenue streams include direct sales of lenses and surgical instruments, as well as royalties from licensing agreements with other manufacturers. Staar Surgical has established significant partnerships with hospitals, clinics, and eye care professionals, which contribute to its market penetration and revenue growth. Additionally, the increasing prevalence of vision disorders and the growing demand for innovative vision correction solutions are critical factors driving Staar's earnings.

Staar Surgical Financial Statement Overview

Summary

Staar Surgical faces profitability challenges with declining revenues and negative margins. Despite a strong balance sheet with low leverage, negative cash flow and profitability metrics indicate operational pressures. Improvement in revenue growth and cost management is needed.

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	Dec 2020
Income Statement
Total Revenue	224.45M	313.90M	322.42M	284.39M	230.47M	163.46M
Gross Profit	160.94M	239.58M	252.65M	223.38M	178.64M	118.36M
EBITDA	-73.24M	-5.72M	33.22M	48.31M	36.98M	9.86M
Net Income	-95.27M	-20.21M	21.35M	39.66M	27.51M	5.91M
Balance Sheet
Total Assets	437.78M	509.52M	488.69M	415.15M	345.78M	257.42M
Cash, Cash Equivalents and Short-Term Investments	189.88M	230.49M	220.73M	211.64M	199.71M	152.45M
Total Debt	40.52M	38.74M	35.83M	31.04M	32.06M	10.80M
Total Liabilities	101.21M	112.19M	102.74M	82.71M	87.22M	60.19M
Stockholders Equity	336.57M	397.33M	385.95M	332.44M	258.56M	197.22M
Cash Flow
Free Cash Flow	-26.07M	-7.67M	-3.59M	17.61M	30.32M	12.55M
Operating Cash Flow	-28.52M	15.72M	14.59M	35.72M	43.96M	20.95M
Investing Cash Flow	5.74M	-59.22M	74.35M	-156.38M	-13.64M	-8.40M
Financing Cash Flow	-3.98M	5.72M	7.42M	8.30M	17.79M	19.57M

Staar Surgical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 28.21 is above the 20-day moving average (MA) of 21.46, above the 50-day MA of 18.86, and above the 200-day MA of 20.96, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 84.51 is Negative, neither overbought nor oversold. The STOCH value of 92.63 is Negative, 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
ISRG	78 Outperform	$171.42B	66.73	16.02%	―	20.77%	23.16%
RMD	76 Outperform	$41.48B	29.80	25.86%	0.76%	9.84%	37.48%
STAA	56 Neutral	$1.36B	55.81	-25.55%	―	-32.59%	-667.81%
BLCO	55 Neutral	$4.87B	―	-4.22%	―	8.81%	40.43%
BAX	54 Neutral	$12.32B	136.07	-3.30%	3.32%	-27.41%	67.01%
MASI	51 Neutral	$8.16B	116.65	-20.54%	―	-8.36%	-669.36%
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%

Staar Surgical Corporate Events

Staar Surgical Merges with Alcon in $1.5B Deal

On August 4, 2025, STAAR Surgical Company entered into a merger agreement with Alcon, where STAAR will become a wholly owned subsidiary of Alcon. The merger, valued at approximately $1.5 billion, involves Alcon purchasing all outstanding shares of STAAR for $28 per share, representing a significant premium over STAAR’s recent stock prices. The acquisition is expected to complement Alcon’s laser vision correction business and be accretive in the second year. The transaction is anticipated to close within six to twelve months, subject to customary conditions and regulatory approvals.

The most recent analyst rating on (STAA) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Staar Surgical stock, see the STAA Stock Forecast page.

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.