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Staar Surgical Co (STAA) Fundamental Analysis & AI Grade 2026

STAA Nasdaq Ophthalmic Goods DE CIK: 0000718937
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-04-03
Combined AI Grade
B
72% Confidence
N/A
B
72% Conf
Pending
Analysis scheduled

📊 STAA Key Takeaways

Revenue: $93.5M
Net Margin: 5.6%
Free Cash Flow: $-22.1M
Current Ratio: 5.12x
Debt/Equity: 0.00x
EPS: $0.10
AI Grade: B with 72% confidence
Staar Surgical Co (STAA) receives a B fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $93.5M, net profit margin of 5.6%, and return on equity (ROE) of 1.5%, Staar Surgical Co demonstrates mixed fundamentals in the Market sector. Below is our complete STAA stock analysis for 2026.

Is Staar Surgical Co (STAA) a Good Investment?

Claude

STAAR Surgical maintains a fortress balance sheet with 73.6% gross margins and zero debt, but faces significant operational headwinds with 23.7% revenue decline and persistent negative operating cash flow of -$21.7M despite positive net income. The gap between accounting profits and negative free cash flow, combined with a 295% EPS collapse, suggests structural challenges requiring operational stabilization before bullish reassessment.

Staar Surgical Co Key Strengths (STAA)

Claude
  • + Industry-leading gross margins of 73.6% indicating strong product pricing power and manufacturing efficiency
  • + Fortress balance sheet with $131.9M cash, zero long-term debt, and 5.12x current ratio providing substantial financial flexibility
  • + Ophthalmic medical device sector with essential product demand and recurring revenue characteristics

STAA Stock Risks: Staar Surgical Co Investment Risks

Claude
  • ! Revenue declined 23.7% YoY with diluted EPS plummeting 295%, indicating severe market or competitive headwinds
  • ! Operating cash flow of -$21.7M coupled with negative free cash flow despite $5.2M net income signals quality-of-earnings concerns and potential working capital deterioration
  • ! Operating margin compression to 8.5% from substantially higher historical levels suggests fixed cost burden or pricing pressure not yet reflected in gross margins

Key Metrics to Watch

Claude
  • * Operating cash flow return to positive territory and free cash flow stabilization
  • * Revenue growth inflection and customer retention metrics to confirm downturn reversing
  • * Gross margin sustainability above 70% to ensure no deterioration in competitive position

Staar Surgical Co (STAA) Financial Metrics & Key Ratios

Revenue
$93.5M
Net Income
$5.2M
EPS (Diluted)
$0.10
Free Cash Flow
$-22.1M
Total Assets
$451.1M
Cash Position
$131.9M

💡 AI Analyst Insight

Strong liquidity with a 5.12x current ratio provides a solid financial cushion.

STAA Profit Margin, ROE & Profitability Analysis

Gross Margin 73.6%
Operating Margin 8.5%
Net Margin 5.6%
ROE 1.5%
ROA 1.2%
FCF Margin -23.7%

STAA vs Market Sector: How Staar Surgical Co Compares

How Staar Surgical Co compares to Market sector averages

Net Margin
STAA 5.6%
vs
Sector Avg 12.0%
STAA Sector
ROE
STAA 1.5%
vs
Sector Avg 15.0%
STAA Sector
Current Ratio
STAA 5.1x
vs
Sector Avg 1.8x
STAA Sector
Debt/Equity
STAA 0.0x
vs
Sector Avg 0.7x
STAA Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Staar Surgical Co Stock Overvalued? STAA Valuation Analysis 2026

Based on fundamental analysis, Staar Surgical Co has mixed fundamental signals relative to the Market sector in 2026.

Return on Equity
1.5%
Sector avg: 15%
Net Profit Margin
5.6%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Staar Surgical Co Balance Sheet: STAA Debt, Cash & Liquidity

Current Ratio
5.12x
Quick Ratio
4.55x
Debt/Equity
0.00x
Debt/Assets
21.9%
Interest Coverage
71.24x
Long-term Debt
N/A

STAA Revenue & Earnings Growth: 5-Year Financial Trend

STAA 5-year financial data: Year 2021: Revenue $230.5M, Net Income $14.0M, EPS $0.30. Year 2022: Revenue $284.4M, Net Income $5.9M, EPS $0.12. Year 2023: Revenue $322.4M, Net Income $27.5M, EPS $0.56. Year 2024: Revenue $322.4M, Net Income $39.7M, EPS $0.80. Year 2025: Revenue $322.4M, Net Income $21.3M, EPS $0.43.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Staar Surgical Co's revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.43 reflects profitable operations.

STAA Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-23.7%
Free cash flow / Revenue

STAA Quarterly Earnings & Performance

Quarterly financial performance data for Staar Surgical Co including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $42.6M $5.2M $0.10
Q3 2025 $88.6M $8.9M $0.18
Q2 2025 $44.3M $4.0M $0.08
Q1 2025 $42.6M -$3.3M $-0.07
Q3 2024 $80.3M $4.8M $0.10
Q2 2024 $92.3M $4.0M $0.08
Q1 2024 $73.5M $2.7M $0.05
Q3 2023 $76.0M $4.8M $0.10

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Staar Surgical Co Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$21.7M
Cash generated from operations
Stock Buybacks
$6.5M
Shares repurchased (TTM)
Capital Expenditures
$443.0K
Investment in assets
Dividends
None
No dividend program

STAA SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Staar Surgical Co (CIK: 0000718937)

📋 Recent SEC Filings

Date Form Document Action
May 19, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →
May 13, 2026 10-Q staa-20260403.htm View →
May 13, 2026 8-K staa-20260512.htm View →

Frequently Asked Questions about STAA

What is the AI rating for STAA?

Staar Surgical Co (STAA) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are STAA's key strengths?

Claude: Industry-leading gross margins of 73.6% indicating strong product pricing power and manufacturing efficiency. Fortress balance sheet with $131.9M cash, zero long-term debt, and 5.12x current ratio providing substantial financial flexibility.

What are the risks of investing in STAA?

Claude: Revenue declined 23.7% YoY with diluted EPS plummeting 295%, indicating severe market or competitive headwinds. Operating cash flow of -$21.7M coupled with negative free cash flow despite $5.2M net income signals quality-of-earnings concerns and potential working capital deterioration.

What is STAA's revenue and growth?

Staar Surgical Co reported revenue of $93.5M.

Does STAA pay dividends?

Staar Surgical Co does not currently pay dividends.

Where can I find STAA SEC filings?

Official SEC filings for Staar Surgical Co (CIK: 0000718937) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is STAA's EPS?

Staar Surgical Co has a diluted EPS of $0.10.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is STAA's fundamental grade?

Based on our AI fundamental analysis in May 2026, Staar Surgical Co has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is STAA stock overvalued or undervalued?

Valuation metrics for STAA: ROE of 1.5% (sector avg: 15%), net margin of 5.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is STAA's AI grade for 2026?

Our dual AI analysis gives Staar Surgical Co a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is STAA's free cash flow?

Staar Surgical Co's operating cash flow is $-21.7M, with capital expenditures of $443.0K. FCF margin is -23.7%.

How does STAA compare to other Market stocks?

Vs Default sector averages: Net margin 5.6% (avg: 12%), ROE 1.5% (avg: 15%), current ratio 5.12 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-04-03 | Powered by Claude AI