Don't overlook NASDAQ:STAA—a stock with solid growth prospects and a reasonable valuation.

Last update: Feb 5, 2025

Our stock screener has spotted STAAR SURGICAL CO (NASDAQ:STAA) as a growth stock which is not overvalued. NASDAQ:STAA is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Growth Analysis for NASDAQ:STAA

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:STAA has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 62.71% over the past year.
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%.
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
STAA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.26% yearly.

Evaluating Valuation: NASDAQ:STAA

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:STAA scores a 6 out of 10:

STAA's Price/Earnings ratio is rather cheap when compared to the industry. STAA is cheaper than 83.68% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STAA indicates a somewhat cheap valuation: STAA is cheaper than 74.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. STAA is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STAA indicates a somewhat cheap valuation: STAA is cheaper than 74.21% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STAA is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 21.63% in the coming years.

Deciphering NASDAQ:STAA's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:STAA, the assigned 8 reflects its health status:

An Altman-Z score of 7.72 indicates that STAA is not in any danger for bankruptcy at the moment.
STAA has a better Altman-Z score (7.72) than 86.32% 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.
A Current Ratio of 5.99 indicates that STAA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.99, STAA belongs to the top of the industry, outperforming 82.63% 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 83.68% of the companies in the same industry.

Understanding NASDAQ:STAA's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:STAA has achieved a 7:

With a decent Return On Assets value of 4.05%, STAA is doing good in the industry, outperforming 78.95% of the companies in the same industry.
The Return On Equity of STAA (5.09%) is better than 77.37% of its industry peers.
With a decent Return On Invested Capital value of 4.05%, STAA is doing good in the industry, outperforming 75.26% of the companies in the same industry.
Looking at the Profit Margin, with a value of 6.38%, STAA is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
In the last couple of years the Profit Margin of STAA has grown nicely.
With a decent Operating Margin value of 7.53%, STAA is doing good in the industry, outperforming 75.26% of the companies in the same industry.
In the last couple of years the Operating Margin of STAA has grown nicely.
With an excellent Gross Margin value of 78.73%, STAA belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.

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

Our latest full fundamental report of STAA contains the most current fundamental analsysis.

Keep in mind

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.