In the world of growth stocks, NASDAQ:STAA shines as a value proposition.

Last update: Nov 6, 2024

Our stock screener has singled out STAAR SURGICAL CO (NASDAQ:STAA) as an attractive growth opportunity. NASDAQ:STAA is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

A Closer Look at Growth for NASDAQ:STAA

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:STAA was assigned a score of 8 for growth:

STAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.80%, which is quite impressive.
Measured over the past years, STAA shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.10% on average per year.
STAA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.00%.
The Revenue has been growing by 21.06% on average over the past years. This is a very strong growth!
Based on estimates for the next years, STAA will show a very strong growth in Earnings Per Share. The EPS will grow by 26.82% on average per year.
The Revenue is expected to grow by 14.86% on average over the next years. This is quite good.

Analyzing Valuation Metrics

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:STAA has received a 5 out of 10:

Based on the Price/Earnings ratio, STAA is valued a bit cheaper than 77.01% of the companies in the same industry.
STAA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STAA is cheaper than 72.73% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, STAA is valued a bit cheaper than 67.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STAA indicates a somewhat cheap valuation: STAA is cheaper than 75.94% of the companies listed in the same industry.
STAA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STAA's earnings are expected to grow with 26.52% in the coming years.

What does the Health looks like for NASDAQ:STAA

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:STAA was assigned a score of 8 for health:

STAA has an Altman-Z score of 9.55. This indicates that STAA is financially healthy and has little risk of bankruptcy at the moment.
STAA has a Altman-Z score of 9.55. This is amongst the best in the industry. STAA outperforms 87.17% of its industry peers.
STAA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
STAA has a Current Ratio of 5.99. This indicates that STAA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.99, STAA is in the better half of the industry, outperforming 79.68% of the companies in the same industry.
A Quick Ratio of 5.38 indicates that STAA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.38, STAA belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.

Evaluating Profitability: NASDAQ:STAA

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:STAA, the assigned 7 is noteworthy for profitability:

STAA's Return On Assets of 4.05% is fine compared to the rest of the industry. STAA outperforms 79.68% of its industry peers.
With a decent Return On Equity value of 5.09%, STAA is doing good in the industry, outperforming 75.40% of the companies in the same industry.
STAA has a Return On Invested Capital of 4.05%. This is in the better half of the industry: STAA outperforms 75.40% of its industry peers.
With a decent Profit Margin value of 6.38%, STAA is doing good in the industry, outperforming 77.54% of the companies in the same industry.
In the last couple of years the Profit Margin of STAA has grown nicely.
Looking at the Operating Margin, with a value of 7.53%, STAA is in the better half of the industry, outperforming 74.33% of the companies in the same industry.
In the last couple of years the Operating Margin of STAA has grown nicely.
STAA's Gross Margin of 78.73% is amongst the best of the industry. STAA outperforms 92.51% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of STAA

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.