Staar Surgical Co (STAA, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $1.81 billion, the company's shares are trading at $37.12. Over the past week, the stock has seen a decline of 6.64%, yet when looking at the broader picture, Staar Surgical has enjoyed a 13.06% increase over the past three months. This growth is particularly significant when considering the company's GF Value, which currently stands at $88.36, down from a past GF Value of $100.44. Despite the recent dip, the current GF Valuation categorizes the stock as Significantly Undervalued, a marked improvement from the previous assessment of a Possible Value Trap, suggesting investors should Think Twice.
Introduction to Staar Surgical Co
Staar Surgical Co, operating within the Medical Devices & Instruments industry, is a pioneer in the production of implantable lenses for the eye. The company's portfolio includes Implantable Collamer Lenses (ICL) for refractive surgery and intraocular lenses (IOL) for cataract surgery. With a focus on ophthalmic surgical products, Staar Surgical has established a significant presence in its market segment, generating the majority of its sales from these specialized lenses. 
Assessing Staar Surgical's Profitability
Staar Surgical's financial health is reflected in its Profitability Rank of 7/10, indicating a strong position relative to its peers. The company's Operating Margin stands at 8.72%, surpassing 64.32% of 824 companies in the industry. Additionally, Staar Surgical's Return on Equity (ROE) is 5.95%, Return on Assets (ROA) is 4.77%, and Return on Invested Capital (ROIC) is 8.43%, each outperforming a majority of competitors. Over the past decade, the company has maintained profitability for six years, showcasing its resilience and operational efficiency. 
Growth Trajectory of Staar Surgical
The company's Growth Rank is an impressive 10/10, reflecting its robust expansion in both revenue and earnings. Staar Surgical's 3-Year Revenue Growth Rate per Share is an impressive 24.10%, and its 5-Year Revenue Growth Rate per Share is 20.10%, both outpacing the majority of their industry counterparts. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 13.91%. Furthermore, the 3-Year EPS without NRI Growth Rate is a remarkable 61.90%, and the 5-Year EPS without NRI Growth Rate is 37.70%, indicating strong earnings momentum moving forward. 
Noteworthy Shareholders in Staar Surgical
Staar Surgical's shareholder base includes prominent investors such as Baillie Gifford (Trades, Portfolio), holding 4,448,208 shares, representing a 9.11% share percentage. Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) also have stakes in the company, with 154,300 shares (0.32% share percentage) and 122,647 shares (0.25% share percentage), respectively. These holdings by well-known investors underscore confidence in Staar Surgical's market position and future prospects.
Competitive Landscape
Staar Surgical operates in a competitive industry, with peers such as AtriCure Inc (ATRC, Financial) with a market cap of $1.4 billion, LeMaitre Vascular Inc (LMAT, Financial) at $1.5 billion, and Warby Parker Inc (WRBY, Financial) at $1.52 billion. These companies, with market capitalizations close to that of Staar Surgical, form a competitive landscape that requires continuous innovation and strategic positioning to maintain and grow market share.
Conclusion
In conclusion, Staar Surgical Co's recent stock performance reflects a short-term decline but an overall positive trajectory over the past three months. The company's strong Growth Rank and Profitability Rank suggest a robust financial health, which, combined with its current valuation as significantly undervalued, presents a potential opportunity for investors. The presence of notable shareholders and Staar Surgical's competitive market positioning further highlight the company's standing in the medical devices industry, making it a stock to watch for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
