Staar Surgical (STAA) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: N/A
• Average Volume (3M): 896.66K
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.84
• Revenue Growth: -32.59%
• EPS Growth: -667.81%
• Country: US
• Employees: 1,157
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.34
• Shares Outstanding: 49,553,036
• 10 Day Avg. Volume: 917,681
• 30 Day Avg. Volume: 896,656
• 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: 0.52
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: -9.40
• 1Y Price Target: $26.33
• Price Target Upside: -1.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 56 Neutral
• Price Target: $29.00 ▲(8.41% 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

Strategic Management Changes

Leadership changes can enhance strategic direction and operational efficiency, potentially improving long-term financial performance and execution.

Expansion of Manufacturing Capacity

Expanding manufacturing capacity supports future growth and market demand, enhancing the company's ability to scale operations and meet increasing global needs.

Merger with Alcon

The merger with Alcon can provide strategic synergies, enhance market reach, and potentially improve financial performance through combined resources and expertise.

Negative Factors

Significant Revenue Decline in China

A sharp decline in China sales impacts overall revenue and highlights reliance on a key market, posing risks to financial stability and growth.

Lower Profitability and Restructuring Charges

Negative profitability and restructuring charges indicate operational challenges, potentially affecting cash flow and financial health in the medium term.

Decreased Gross Margin

A declining gross margin suggests rising costs and pricing pressures, which can erode profitability and hinder the company's competitive positioning.

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 is facing financial headwinds, particularly in terms of revenue and profitability. The income statement reveals significant challenges with a notable decline in revenue growth and negative margins. The balance sheet remains stable with low leverage, but cash flow analysis shows mixed results with negative operating cash flow.

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	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: 26.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 26.75 is below the 20-day moving average (MA) of 27.39, above the 50-day MA of 25.12, and above the 200-day MA of 20.83, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.86 is Positive, 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	79 Outperform	40.15B	28.84	23.47%	0.82%	9.84%	37.48%
ISRG	78 Outperform	159.16B	61.14	―	―	20.77%	23.16%
STAA	56 Neutral	$1.33B	55.81	-25.55%	―	-32.59%	-667.81%
BAX	54 Neutral	11.59B	-81.77	-9.32%	3.13%	-27.41%	67.01%
MASI	54 Neutral	7.63B	-16.31	-44.04%	―	-8.36%	-669.36%
BLCO	49 Neutral	5.31B	-18.58	-6.23%	―	8.81%	40.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.

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.

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.

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.