NASDAQ:STAA, a growth stock which is not overvalued.

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.

Growth Analysis for NASDAQ:STAA

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:STAA has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 62.71% over the past year.
• The Earnings Per Share has been growing by 43.10% on average over the past years. This is a very strong growth
• The Revenue has grown by 10.00% in the past year. This is quite good.
• 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.
• The Earnings Per Share is expected to grow by 28.86% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 14.26% on average over the next years. This is quite good.

How do we evaluate the Valuation for NASDAQ:STAA?

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:STAA has achieved a 5 out of 10:

• Based on the Price/Earnings ratio, STAA is valued cheaper than 84.66% of the companies in the same industry.
• 75.13% of the companies in the same industry are more expensive than STAA, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STAA indicates a somewhat cheap valuation: STAA is cheaper than 74.07% of the companies listed 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 78.31% of the companies listed in the same industry.
• The decent profitability rating of STAA may justify a higher PE ratio.
• STAA's earnings are expected to grow with 23.39% in the coming years. This may justify a more expensive valuation.

Assessing Health for NASDAQ:STAA

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:STAA has earned a 8 out of 10:

• STAA has an Altman-Z score of 7.52. This indicates that STAA is financially healthy and has little risk of bankruptcy at the moment.
• STAA has a Altman-Z score of 7.52. This is amongst the best in the industry. STAA outperforms 86.24% 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.
• STAA has a Current ratio of 5.99. This is amongst the best in the industry. STAA outperforms 82.54% of its industry peers.
• STAA has a Quick Ratio of 5.38. This indicates that STAA is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of STAA (5.38) is better than 83.60% of its industry peers.

Understanding NASDAQ:STAA's Profitability

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 has a Return On Assets of 4.05%. This is in the better half of the industry: STAA outperforms 78.84% of its industry peers.
• The Return On Equity of STAA (5.09%) is better than 77.25% of its industry peers.
• With a decent Return On Invested Capital value of 4.05%, STAA is doing good in the industry, outperforming 75.13% of the companies in the same industry.
• STAA's Profit Margin of 6.38% is fine compared to the rest of the industry. STAA outperforms 77.78% of its industry peers.
• STAA's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 7.53%, STAA is doing good in the industry, outperforming 75.13% of the companies in the same industry.
• In the last couple of years the Operating Margin of STAA has grown nicely.
• Looking at the Gross Margin, with a value of 78.73%, STAA belongs to the top of the industry, outperforming 91.53% of the companies in the same industry.

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

Check the latest full fundamental report of STAA for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.