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Staar Surgical Co

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Staar Surgical Co AI Insights

Informational only. Not investment advice.
As of 2025-12-15

Snapshot

  • Gross margin 73.9% TTM vs industry median 53% - premium pricing power despite -27% operating margin from heavy R&D (21% of revenue)[Gross Margin]
  • Cash burn of -39.5M FCF TTM with 176M cash provides ~4.5 years runway at current rate before capital raise needed[Free Cash Flow]
  • EPS growth 161% 1Y yet still -$1.40 loss - improvement trajectory but profitability remains elusive[EPS Growth 1Y]

Watch Triggers

  • Quarterly Revenue: >65M (annualized 260M+)Breakeven requires ~300M revenue; quarterly acceleration signals path to profitability
  • Cash and Equivalents: <100MBelow 100M with current burn rate signals capital raise within 18 months
  • Gross Margin: <70%Margin compression would extend path to profitability and invalidate bull thesis

Bull Case

Premium gross margin (73.9% vs 53% median) with minimal debt (0.11 D/E) and 176M cash creates optionality for growth investments or acquisition without dilution

Gross MarginDebt to EquityCash and Equivalents

EPS improving 161% YoY signals operating leverage kicking in - revenue growth could flip to profitability rapidly given high contribution margins

EPS Growth 1YOperating Margin

Bear Case

Negative FCF (-39.5M TTM) and -96M net loss burning through 176M cash - if growth stalls, dilutive raise likely within 3 years

Free Cash FlowNet IncomeCash and Equivalents

P/S 5.2x vs median 1.9x prices in significant growth that hasn't materialized - valuation assumes profitability not yet proven

P/S RatioOperating Margin

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

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Forward Thesis

Path to profitability hinges on revenue scaling past ~300M while holding gross margins above 70%

1-3ymed
  • Operating expenses 233M TTM are relatively fixed
  • Gross margin 73.9% provides high incremental contribution
  • R&D 49M may moderate as products mature
Revenue 231M TTM vs 233M opex = breakeven threshold nearGross profit 170M covers 73% of operating expensesDebt/equity 0.11 - minimal leverage risk

Valuation Context

Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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