Staar Surgical Co (STAA, Financial), a prominent player in the medical devices industry, has demonstrated a robust performance in the stock market recently. Over the past week, the company's stock price has seen a gain of 4.08%, and over the last three months, it has surged by an impressive 10.41%. Currently, Staar Surgical boasts a market capitalization of $2.1 billion. According to GuruFocus's valuation, the stock is significantly undervalued with a current GF Value of $83.76, down from $88.02 three months ago, suggesting potential for further appreciation.
Introduction to Staar Surgical Co
Staar Surgical Co specializes in the manufacturing of implantable lenses used in eye surgeries, including Implantable Collamer Lenses (ICLs) for refractive surgery and Intraocular Lenses (IOLs) for cataract surgery. The company's innovative products primarily cater to the ophthalmic surgical segment, making significant contributions to eye care. Staar Surgical's commitment to enhancing vision with advanced technology has positioned it as a key player in the medical devices sector. 
Assessing Staar Surgical's Profitability
Staar Surgical's financial health is solid, with a Profitability Rank of 7/10, indicating strong profitability within the industry. The company's Operating Margin stands at 7.06%, which is better than 61.01% of its peers. Additionally, Staar Surgical's Return on Equity (ROE) and Return on Assets (ROA) are 4.13% and 3.31% respectively, both surpassing more than half of the industry's companies. The Return on Invested Capital (ROIC) at 5.97% further underscores the efficient management of capital. Staar Surgical has maintained profitability for six out of the past ten years, outperforming 42.78% of its industry counterparts. 
Exploring Growth Metrics
Staar Surgical's growth trajectory is impressive, with a Growth Rank of 10/10. The company has achieved a 3-Year Revenue Growth Rate per Share of 24.10%, and a 5-Year Rate of 20.10%, both rates outperforming a large majority of their industry peers. Future revenue growth is estimated at 13.25% over the next 3 to 5 years. Staar Surgical's earnings per share (EPS) growth has also been remarkable, with a 3-Year Growth Rate of 61.90% and a 5-Year Rate of 37.70%, significantly higher than most companies in the sector. 
Major Shareholders
Staar Surgical's top shareholders include Baillie Gifford (Trades, Portfolio), holding 4,114,900 shares (8.38% share), followed by Jefferies Group (Trades, Portfolio) with 47,700 shares (0.1% share), and Ray Dalio (Trades, Portfolio) with 44,538 shares (0.09% share). These major investors reflect confidence in the company's market strategy and future growth potential.
Competitive Landscape
Staar Surgical operates in a competitive landscape with key players such as Warby Parker Inc (WRBY, Financial) with a market cap of $1.96 billion, LeMaitre Vascular Inc (LMAT, Financial) at $1.77 billion, and ICU Medical Inc (ICUI, Financial) leading at $2.8 billion. These companies, like Staar Surgical, are significant contributors to the medical devices and instruments sector, each with unique strengths and market positions.
Conclusion
Staar Surgical Co stands out in the medical devices industry not only for its strong profitability but also for its exceptional growth. Despite the recent gains in its stock price, the company remains significantly undervalued according to the GF Value, indicating room for potential growth. Staar Surgical's strategic focus on specialized implantable lenses positions it well within a niche yet crucial segment of medical surgeries, promising continued success and investor interest in the foreseeable future.
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.
