STAAR Surgical Company Common Stock (STAA)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-style investor, I want a business with durable demand, consistent profits, and a price that offers a margin of safety. STAAR Surgical sells implantable collamer lenses for refractive eye surgery—a niche medical-device business with regulatory barriers and 921 employees. The recent record is not consistent. In fiscal 2025, the year ended 2026-01-02, revenue was $239.4M and net income was -$80.4M. In fiscal 2024, the year ended 2024-12-27, revenue was $313.9M and net income was -$20.2M; only fiscal 2023, the year ended 2023-12-29, showed a profit, with net income of $21.3M. That fits the computed Peter Lynch category: TURNAROUND — Loss in the latest year after earlier profits. The latest filed quarter, fiscal Q2 2026, the quarter ended 2026-07-03, showed revenue of $93.5M and net income of $8.1M, or diluted EPS $0.16. The prior-year quarter, fiscal Q2 2025, the quarter ended 2025-06-27, lost $16.8M on $44.3M of revenue, so the swing is real. Still, trailing free cash flow is -$6.7M, FCF yield -0.6%, and ROE is only 1.09%. Debt is low (D/E 0.10) and Altman Z-Score 6.44, so solvency is not the issue. Valuation is the rub. At the 2026-10-13 close of $21.50, the computed P/E is 268.75, P/B 2.95, PEG 2.45, and EV/EBITDA 19.01. The Graham Number is $3.62, leaving a margin of safety of -493.92%. I would call this a speculative turnaround, not a Graham bargain. The company needs several more quarters of profitable growth and positive cash flow before the price is supported by owner earnings.

In plain English: STAAR Surgical makes small lenses that are placed inside the eye to correct vision instead of glasses or laser surgery. The business has been uneven: it lost money in fiscal 2025 and fiscal 2024, but recent quarters show sales and profits improving. At the recent price of $21.50 on 2026-10-13, the stock looks expensive compared with the company's current earnings and cash flow, so much depends on whether the turnaround keeps working.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · fiscal Q2 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2026-01-02) · FY2024 10-K (period ended 2024-12-27) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer