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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Staar Surgical Company (XNAS:STAA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
STAA
Name:
STAAR SURGICAL COMPANY (XNAS:STAA)
Sector:
- 7149.00K
Industry:
Medical Instruments & Supplies
CEO:
Ms. Caren Mason
Total Employees:
692
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -112.53% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF STAAR SURGICAL COMPANY(STAA) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL INSTRUMENTS & SUPPLIES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
90.52
One Month Price Target:
$91.05
Six Month Price Target :
$93.68
Likely Price in One Year's Time:
Ticker:
$96.85
Likely Trading Range Today Under (Normal Volatility)
$90.1
Price Upper limit ($) :
$91.32
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$83.33
This week:
$74.45
This month :
$58.38
Other Primary facts
Market Cap:
4.32B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
48.04M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
20.43%
-19.07%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$123.82
$108.26
$57.22
$72.78
Medium risk (<10%) entry points
Buy Call
Sell Call
$103.20
Buy Put:
Sell Put:
$99.87
$77.80
$81.17
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
STAA
Sharpe Ratio:
4.98%
Comparison:
STAA, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 211.00% higher than the industry
& ratio is 118.48% higher than the market/S&P 500 average
Average Returns/Yield of
STAA
Daily returns:
0.21%
Weekly returns:
1.03%
Monthly returns:
4.13%
Yearly returns:
14.68%
Comparison of returns:
Average annual returns/yield (last 3 years) is 237.30% above industry average
Classification:
STAA, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.26
Statistical test of Returns:
STAA has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.97%
Weekly Volatility:
8.87%
Monthly Volatility:
17.74%
Yearly Volatility:
61.44%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.15%
Volatility in last five trading days has been -70.93% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-7.94%
Weekly VaR:
-17.75%
Monthly VaR:
-35.50%
How Much Can the price of
STAA
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-29%
Worst case (decline):
>85%
This translates to price declining to:
$64.25
This translates to price declining to:
$13.58
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
STAA is a 150.59% riskier investment compared to the market/S&P 500 & is 114.68% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 36.62% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
STAA
Beta in relation to market/S&P 500--1.04
Expected beta in 1 year's time:
0.756
Expected beta in 3 year's time:
1.069
Unlevered (debt free) Beta:
0.962
Beta in relation to Nasdaq (XNAS):
1.174
Beta in relation to all global stocks::
0.599
Beta Comparison & Analysis
Beta of competitors/peers::
1.143
Beta is -8.99% lower than peers
Average Industry Beta:
0.989
Beta is 5.11% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
10.24%
Sustainable growth rate is -30.35% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.393
Alpha is 725.31% above industry average alpha yield
Alpha is 2499% higher than market/& is unsustainably high
Analysis of Cost of Capital of
STAA
Equity cost of capital:
0.103
Equity cost of capital is 3.49% above industry mean WACC
Unlevered (without debt) cost of capital:
9.50%
Before-tax cost of debt:
0.10%
After-tax cost of debt:
0.08%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.08%
WACC is 7.17% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$5.06
Revenue growth rate per share of (3Y):
15.74
Annual revenue growth rate is 30.90% above the industry average
EPS:
$0.59
Expected Annual growth rate of EPS (3Y):
16.04%
Expected future EPS growth rate is 38.70% higher than the Medical Instruments & Supplies industry
Free cash flow (FCF) per share:
$0.38
-
-
Debt per share
$0.58
EBITDA per share
$0.84
Valuation Analysis Today of
STAA
P/E Ratio:
133.01
P/E Ratio of Competitors/Peers:
743.24
P/E ratio is -82.10% lower than main peers & is 166.61% higher than the industry
Stock price/value with industry average P/E ratio: $29.43
STAA is 207.53% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
17.9
Price to sales ratio is 141.38% above the industry mean
P/B (Price to book value ratio):
15.74
Price to free cash flow: 237.03
Price to free cash flow ratio is 74.36% higher than the industry
Net income growth rate (3Y):
342.32%
Net income growth rate is -423.94% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
10.17%
Net debt to equity ratio:
-58.34%
Debt to assets ratio:
8.00%
Net debt to assets ratio:
-45.91%
Debt-to-asset ratio is -77.71% below industry average
Ability to repay debt:
Interest coverage ratio:
1262.31
Interest coverage ratio is 1679.53% more than industry average
Looking forward:
Debt growth rate:
196.89%
Annual debt growth is 79% higher than industry average debt growth rate
Debt repayment rate in last quarter: 0.06%
Analysis of Key Statistics
Correlation of price movement with the market:
0.462
Statistical significance of correlation:
STAA has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.505
Stock price is -8.45% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.505
Correlation of price movement with Nasdaq (^IXIC):
-0.042
Covariance of price movement with the market:
-0.097
Kurtosis
3.475
Returns are, approximately, normally distributed (mesokurtic)
Skewness of returns:
0.539
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
STAA
Gross Profit Margin Ratio:
311%
Operating Profit Margin Ratio:
15.64%
Operating profit margin is 16.81% higher than the industry
Net Profit Margin Ratio:
311%
Effective Tax Rate:
20.44%
Effective tax rate is -37.79% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
10.54%
Return on equity (ROE) is -123.11% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
8.29%
Return on assets (ROA) is 15.74% higher than the industry
Financial Leverage:
1.1x
Current Ratio:
6.65
Current ratio is 82.15% above industry average
Cash Conversion Cycle (days):
37.7
Cash conversion cycle is -28.54% below industry average
The remaining useful life of property plant & equipment is: 0.4 years
Stock based compensation to net income ratio:
13.38%
In-depth Efficiency Analysis
Revenue generated per employee:
351.0K
Each employee generates -1% less revenue than industry average revenue per employee
EBITDA generated per employee:
58.4K
Each employee generates -48% less EBITDA than industry average revenue per employee
Profit generated per employee:
42.1K
Each employee generates -46% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 10.3K
Each employee generates 80% more free cash flow than industry average revenue per employee
Assets/Capital per employee
111.7K
Each employee generates 80% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 6.09%
Growth rate in R&D investment/expenditure is 2252.28% higher than the industry
Competitors/Peer firms of
STAA
IMMUNITYBIO, INC. (XNAS:IBRX)
LHC GROUP, INC. (XNAS:LHCG)
R1 RCM HOLDCO INC. (XNAS:RCM)
DENALI THERAPEUTICS INC. (XNAS:DNLI)
INTEGRA LIFESCIENCES HOLDINGS CORPORATION (XNAS:IART)
HEALTHEQUITY, INC. (XNAS:HQY)
OMNICELL, INC. (XNAS:OMCL)
GWPH
HALOZYME THERAPEUTICS, INC. (XNAS:HALO)
Current Analyst Ratings
Strong buy�8%
Buy�4%
Hold�8%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
242.92M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
54.16M
188.76M
33.54M
45.87M
117.23M
71.36M
-
150.78M
-
32.00K
3.77M
40.39M
37.98M
29.11M
36.59M
7.48M
29.11M
Statement of Cash Flow
Date:
Period:
1.00M
Differed Income Tax :
-
Stock Based Compensation :
3.89M
Change in Working Capital :
- 19389.00K
Accounts Receivables:
- 3927.00K
Other Working Capital:
-
Other Non-Cash Items:
281.00K
Net Cash Provided by Operating Activities:
- 4610.00K
Investments in PP&E:
- 2539.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
193.07M
-
193.07M
49.72M
18.45M
12.67M
273.90M
71.14M
1.79M
203.00K
-
3.33M
817.00K
77.28M
-
351.18M
13.42M
3.76M
2.87M
-
24.00M
41.18M
28.10M
4.77M
33.68M
-
74.86M
478.00K
- 101788.00K
- 1063.0K
-
March 31, 2022 at 6:00:00 AM
204.94M
276.32M
351.18M
-
31.86M
- 161208.0K
-
-
- 2539.00K
- 18.00K
-
-
-
912.00K
894.00K
- 384.00K
- 6639.00K
193.07M
199.71M
- 4610.00K
- 2539.00K
- 7149.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
STAA
2023
2024
2025
2026
2027
$97.33
$225.22
$240.96
$257.80
$275.81