Despite its growth, NASDAQ:STAA remains within the realm of affordability.

Last update: Dec 24, 2024

STAAR SURGICAL CO (NASDAQ:STAA) was identified as an affordable growth stock by our stock screener. NASDAQ:STAA is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Insights: 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 62.71%, which is quite impressive.
STAA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.10% yearly.
Looking at the last year, STAA shows a quite strong growth in Revenue. The Revenue has grown by 10.00% in the last year.
Measured over the past years, STAA shows a very strong growth in Revenue. The Revenue has been growing by 21.06% on average per year.
STAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.86% yearly.
STAA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.26% yearly.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:STAA, the assigned 5 reflects its valuation:

Compared to the rest of the industry, the Price/Earnings ratio of STAA indicates a rather cheap valuation: STAA is cheaper than 82.35% of the companies listed in the same industry.
Based on the Price/Forward Earnings ratio, STAA is valued a bit cheaper than the industry average as 74.87% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, STAA is valued a bit cheaper than the industry average as 72.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, STAA is valued a bit cheaper than 75.94% of the companies in the same industry.
The decent profitability rating of STAA may justify a higher PE ratio.
A more expensive valuation may be justified as STAA's earnings are expected to grow with 23.39% in the coming years.

Assessing Health for NASDAQ:STAA

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:STAA, the assigned 8 for health provides valuable insights:

An Altman-Z score of 7.97 indicates that STAA is not in any danger for bankruptcy at the moment.
STAA has a Altman-Z score of 7.97. This is amongst the best in the industry. STAA outperforms 86.63% of its industry peers.
There is no outstanding debt for STAA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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 belongs to the top of the industry, outperforming 81.28% 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.
STAA's Quick ratio of 5.38 is amongst the best of the industry. STAA outperforms 82.35% of its industry peers.

Understanding NASDAQ:STAA's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:STAA was assigned a score of 7 for profitability:

Looking at the Return On Assets, with a value of 4.05%, STAA is in the better half of the industry, outperforming 78.61% of the companies in the same industry.
STAA has a better Return On Equity (5.09%) than 77.01% of its industry peers.
STAA's Return On Invested Capital of 4.05% is fine compared to the rest of the industry. STAA outperforms 74.87% of its industry peers.
STAA's Profit Margin of 6.38% is fine compared to the rest of the industry. STAA outperforms 77.54% of its industry peers.
In the last couple of years the Profit Margin of STAA has grown nicely.
STAA's Operating Margin of 7.53% is fine compared to the rest of the industry. STAA outperforms 74.87% of its industry peers.
STAA's Operating Margin has improved in the last couple of years.
STAA's Gross Margin of 78.73% is amongst the best of the industry. STAA outperforms 91.44% 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.