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Staar Surgical (STAA)
NASDAQ:STAA
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Staar Surgical
(NASDAQ:STAA)
52Neutral
Positive Factors
Financial Strategy
The new CEO is bringing a clear message of financial discipline to STAAR, aiming to rein in spending that does not contribute to revenue growth.
Leadership
Stephen Farrel, the new CEO, has extensive background in both CEO and CFO positions of global healthcare businesses.
Negative Factors
China Market
There is no clear path to a near-term recovery in China.
Market Challenges
Macroeconomic headwinds will continue to challenge demand for EVO, despite the high quality of the product.
Revenue Growth
Despite the refractive market dynamics proving challenging, STAAR's sales have declined by 2.6% while operating expenses have grown.
Staar Surgical (STAA) vs. S&P 500 (SPY)
Market Cap
$969.24M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)55.8
Beta (1Y)0.62
Revenue Growth-2.64%
EPS Growth-193.31%
CountryUS
Employees1,211
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.41
Shares Outstanding49,325,370
10 Day Avg. Volume1,403,817
30 Day Avg. Volume1,341,272
Financial Highlights & Ratios
PEG Ratio5.37
Price to Book (P/B)N/A
Price to Sales (P/S)3.09
Price to Cash Flow (P/CF)377.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.83Price Target Upside-8.23% Downside
Rating ConsensusHold
Number of Analyst Covering9
Staar Surgical Business Overview & Revenue Model
Company DescriptionStaar 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 MoneyStaar 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 has a mixed financial performance. The balance sheet is a strength with low debt and strong equity, but the income statement reveals challenges with declining net profit margins and inconsistent revenue growth. Cash flow has improved but remains low, requiring attention for sustainable growth.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.45
Neutral
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.70
Positive
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.60
Neutral
| 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 |
| -20.21K | 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
Neutral
18.34
Price Trends
21.19
Negative
24.64
Negative
31.36
Negative
Market Momentum
-0.89
Negative
52.98
Neutral
75.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STAA, the sentiment is Neutral. The current price of 18.34 is above the 20-day moving average (MA) of 17.69, below the 50-day MA of 21.19, and below the 200-day MA of 31.36, indicating a neutral trend. The MACD of -0.89 indicates Negative momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STAA.
Staar Surgical Risk Analysis
Staar Surgical disclosed 41 risk factors in its most recent earnings report. Staar Surgical reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Staar Surgical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $140.97B | 76.57 | 9.03% | ― | 17.60% | 16.84% | |
72 Outperform | $22.03B | 24.36 | 7.24% | 0.87% | 3.84% | -9.29% | |
68 Neutral | $40.29B | 28.76 | 17.17% | ― | -4.67% | 3.34% | |
54 Neutral | $18.71B | 136.07 | -9.24% | 2.52% | -14.00% | -184.82% | |
53 Neutral | $3.19B | ― | -5.76% | ― | 5.28% | -292.14% | |
52 Neutral | $969.24M | 55.81 | -5.16% | ― | -2.64% | -193.31% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
STAA
Staar Surgical
18.34
-19.30
-51.28%
BAX
Baxter International
35.85
-5.93
-14.19%
BSX
Boston Scientific
95.52
28.03
41.53%
EW
Edwards Lifesciences
68.39
-22.52
-24.77%
ICUI
ICU Medical
138.99
38.15
37.83%
ZBH
Zimmer Biomet Holdings
107.34
-19.78
-15.56%
Staar Surgical Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -16.18% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Negative
STAAR Surgical faced significant challenges in China, which overshadowed strong performance in other regions. While the company continues to grow outside of China and gain market share in the U.S., the decline in China sales and the unrecognized revenue due to extended payment terms have negatively impacted overall results. The company remains optimistic about future growth and recovery, particularly in China, but the current challenges have led to a cautious outlook for fiscal 2025.Highlights
Strong Growth Outside of China
STAAR generated $152 million of ICL sales outside of China, reflecting growth of 17% in Q4 and 13% for the fiscal year 2024.
U.S. Market Share Gains
In the U.S., STAAR achieved sales growth of 22% in Q4 and 15% for the fiscal year, outperforming a market that saw a decline in laser vision correction procedures.
Diverse Global Presence
STAAR's business is geographically diverse, with sales in over 75 countries, demonstrating strong performance in regions like EMEA and APAC (excluding China).
Lowlights
Significant Decline in China Sales
ICL sales in China were $7.5 million in Q4 and $161 million for the full year, down 13% year-over-year, impacted by weak consumer confidence and economic slowdown.
Unrecognized Revenue Due to Extended Payment Terms
A $27.5 million order shipped to China in December was not recognized as revenue due to extended payment terms, impacting fiscal 2024 results.
Fiscal Year Decline in Sales
Total net sales for fiscal 2024 were $313.9 million, a decline of 3% compared to fiscal 2023, primarily due to challenges in China.
Net Loss for Fiscal 2024
STAAR reported a net loss of $20.2 million for fiscal 2024 compared to net income of $21.3 million in the previous year.
Challenges with Inventory in China
Elevated inventory levels in China are expected to result in minimal ICL sales in the first half of 2025.
Company Guidance
In the STAAR Surgical Q4 2024 earnings call, guidance for fiscal 2025 was discussed with several metrics highlighted. The company anticipates ICL sales outside China to range from $165 million to $175 million, reflecting a growth of 9% to 15%. In China, due to elevated inventory levels and economic uncertainty, ICL sales are projected between $75 million and $125 million. This wide range accounts for potential fluctuations in the refractive market, with a decline of up to 10% or a rebound of up to 10%. The total net sales for fiscal 2024 were $313.9 million, a 3% decline from 2023, largely due to a significant drop in China sales, including an unrecognized $27.5 million shipment. Despite this, sales outside China saw a resilient growth, with the Americas achieving a 22% increase in Q4 and 15% for the year. The guidance also considers macroeconomic conditions, especially in China, where consumer confidence and retail dynamics remain volatile, impacting the demand for ICLs. Adjusted EBITDA loss for 2025 is projected between $50 million to $15 million, with cash reserves expected to end between $150 million to $175 million.Staar Surgical Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Staar Surgical Announces New Leadership Transition
Positive
Feb 26, 2025
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.
Business Operations and StrategyFinancial Disclosures
Staar Surgical Reports Sales Decline Amid Economic Challenges
Negative
Feb 11, 2025
STAAR Surgical reported its financial results for the fourth quarter and fiscal year 2024, highlighting a decline in net sales due to weak macroeconomic conditions in China, the largest market for refractive procedures. The company’s overall performance was affected, with a net loss reported for the year. Despite this, STAAR experienced growth in ICL sales outside of China, with a 17% increase in the fourth quarter of 2024 and a 13% increase for the entire fiscal year. Looking forward, the company anticipates continued growth in global markets excluding China, while managing elevated inventory levels and planning for a potential market rebound in China during the second half of 2025.
Business Operations and StrategyFinancial Disclosures
Staar Surgical to Announce 2024 Financial Results
Neutral
Jan 13, 2025
STAAR Surgical announced it will release its financial results for Q4 and fiscal year 2024 on February 19, 2025, after market close. The company reported double-digit global sales growth for its EVO ICL™ technology, except in China due to economic conditions affecting consumer confidence. The forthcoming Chinese New Year and recent stimulus are expected to impact STAAR’s 2025 outlook, which will be discussed in their earnings call.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.