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Delcath Systems (DCTH)
NASDAQ:DCTH
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Delcath Systems
(NASDAQ:DCTH)
54Neutral
Positive Factors
Investment Opportunity
Delcath presents a rare investment opportunity in biotech: growing revenues, profitability, and soon to be cash flow positive.
Market Expansion
Continued revenue growth is expected, driven by new site activation.
Revenue Performance
Hepzato revenue beat with $13.7M vs. $11.7M consensus.
Negative Factors
Risks and Challenges
Risks associated with Delcath include commercial, clinical, regulatory, and competition challenges.
Delcath Systems (DCTH) vs. S&P 500 (SPY)
Market Cap
$458.29M
Dividend YieldN/A
Average Volume (3M)410.75K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth1701.69%
EPS Growth67.30%
CountryUS
Employees96
SectorHealthcare
Sector Strength74
IndustryMedical - Specialties
Share Statistics
EPS (TTM)-0.98
Shares Outstanding33,403,137
10 Day Avg. Volume524,962
30 Day Avg. Volume410,755
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)12.32
Price to Cash Flow (P/CF)-114.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.00Price Target Upside57.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Delcath Systems Business Overview & Revenue Model
Company DescriptionDelcath Systems, Inc. is a specialty pharmaceutical and medical device company focused on oncology. The company is committed to the development and commercialization of its proprietary Percutaneous Hepatic Perfusion (PHP) therapy, known as CHEMOSAT, for the targeted treatment of primary and metastatic liver cancers. Operating primarily in the healthcare sector, Delcath provides innovative treatment solutions aimed at improving patient outcomes in liver cancer management.
How the Company Makes MoneyDelcath Systems makes money through the development and commercialization of its proprietary PHP therapy, CHEMOSAT. Revenue is primarily generated from the sale and distribution of the CHEMOSAT system to hospitals and medical institutions that treat patients with liver cancer. The company may also derive income from licensing agreements and partnerships with other pharmaceutical and medical device companies, which help in expanding the reach of its technology and enhancing its product offerings. Clinical trials and regulatory approvals are significant factors that influence the company's earnings, as they determine the ability to market and sell CHEMOSAT in different regions.
Delcath Systems Financial Statement Overview
Summary
Delcath Systems displays a mixed financial profile with robust revenue growth but persistent net losses impacting profitability. The balance sheet remains strong with low leverage and high equity, providing financial stability. Cash flow management is challenging, although financing activities have bolstered liquidity. The company must focus on improving operational efficiencies to achieve profitability.Income Statement
The income statement shows significant net losses over the years, with a negative net profit margin of -85.1% in 2024, indicating profitability challenges. However, there was a substantial revenue increase from $2.065 million in 2023 to $31.017 million in 2024, marking a strong revenue growth rate of 1401.6%. The gross profit margin is high at 100%, but the EBIT and EBITDA margins are negative, reflecting ongoing operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with a debt-to-equity ratio of 0.02, indicating low leverage. Return on equity remains negative due to net losses. The equity ratio improved to 89.8% in 2024, reflecting a strong equity base relative to total assets. This suggests stability and low financial risk, but ongoing net losses are a concern for long-term sustainability.55
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow and operating cash flow in 2024, with a free cash flow to net income ratio below 1, indicating cash flow challenges. However, the company improved its free cash flow position from 2023 to 2024 by reducing cash outflows. The financing activities have consistently provided cash inflows, supporting liquidity.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 31.02M | 2.06M | 2.72M | 3.56M | 1.65M | Gross Profit |
| 31.02M | 1.43M | 2.03M | 2.88M | 1.01M | EBIT |
| -12.41M | -38.18M | -33.85M | -24.53M | -21.30M | EBITDA |
| -12.18M | -46.11M | -33.69M | -24.00M | -23.79M | Net Income Common Stockholders |
| -26.39M | -47.68M | -39.16M | -26.76M | -24.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 53.23M | 32.45M | 7.67M | 22.80M | 28.57M | Total Assets |
| 76.59M | 38.61M | 17.86M | 33.12M | 34.63M | Total Debt |
| 1.04M | 10.19M | 15.87M | 16.25M | 2.94M | Net Debt |
| -31.37M | -2.46M | 8.20M | -6.55M | -25.63M | Total Liabilities |
| 7.84M | 22.84M | 23.72M | 21.17M | 12.56M | Stockholders Equity |
| 68.75M | 15.78M | -5.86M | 11.95M | 22.08M |
| Cash Flow | Free Cash Flow | |||
| -19.24M | -31.31M | -25.16M | -22.75M | -23.65M | Operating Cash Flow |
| -18.68M | -31.25M | -24.95M | -22.60M | -22.87M | Investing Cash Flow |
| -981.00K | -19.71M | -209.00K | -143.00K | -782.00K | Financing Cash Flow |
| 39.41M | 51.78M | 10.14M | 20.82M | 42.35M |
Delcath Systems Technical Analysis
Positive
13.96
Price Trends
14.45
Negative
12.80
Positive
10.72
Positive
Market Momentum
-0.24
Negative
52.80
Neutral
83.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCTH, the sentiment is Positive. The current price of 13.96 is above the 20-day moving average (MA) of 13.31, below the 50-day MA of 14.45, and above the 200-day MA of 10.72, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 83.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DCTH.
Delcath Systems Risk Analysis
Delcath Systems disclosed 57 risk factors in its most recent earnings report. Delcath Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Delcath Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $458.29M | ― | -62.43% | ― | 1701.69% | 67.30% | |
52 Neutral | $191.26M | ― | -9.15% | ― | 1.26% | 70.30% | |
49 Neutral | $6.94B | 0.66 | -52.58% | 2.47% | 22.65% | 0.94% | |
39 Underperform | $16.00 | ― | 1078.28% | ― | -7.53% | 77.39% | |
34 Underperform | $103.59M | ― | -216.24% | ― | ― | 61.97% |
* Healthcare Sector Average
Performance Comparison
DCTH
Delcath Systems
13.96
9.30
199.57%
ARAY
Accuray
1.90
-0.58
-23.39%
THMO
ThermoGenesis Holdings
0.02
-0.67
-97.10%
IMUX
Immunic
1.17
-0.13
-10.00%
Delcath Systems Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 3.95% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in the U.S. market with the launch of HEPZATO and significant growth in Europe, despite challenges with pricing and high operational expenses. The company's strategic focus on expanding treatment centers and R&D initiatives suggests a positive outlook.Highlights
Successful U.S. Launch of HEPZATO
Generated $32.3 million of HEPZATO revenue in the U.S. for 2024, including $13.7 million in Q4 from 14 active U.S. treatment centers.
Positive Financial Performance
Achieved $4.6 million in positive adjusted EBITDA in Q4, a first for the company. Ended the year with $53.2 million in cash and investments with no debt.
European Growth
European revenue growth of 137% over 2023, with Germany up 75% and other markets including the UK and Turkey doubling year-over-year.
Expansion of Treatment Centers
Activated three new U.S. treatment centers in Q4, bringing the total to 16 active centers, with plans to reach 30 centers by year-end 2025.
Strategic R&D Initiatives
Received FDA clearance for a Phase 2 trial in metastatic CRC and planning a Phase 2 trial in metastatic breast cancer.
Lowlights
Limited European Revenue Due to Pricing
Incremental revenue from Europe remains modest due to pricing and reimbursement structures, although strategic growth is expected.
High Operating Expenses
R&D expenses for 2024 were $13.9 million, and SG&A expenses were $29.6 million, indicating a significant investment in operations.
Company Guidance
In the fourth quarter of 2024, Delcath Systems reported significant milestones, including $13.7 million in HEPZATO revenue from 14 active U.S. treatment centers and a 137% growth in European sales. The company achieved a gross margin of 86% for the quarter and 83% for the full year, while the cash burn was reduced to $1 million. Notably, Delcath ended the year with $53.2 million in cash and investments and no debt. They activated three new U.S. treatment centers in Q4, with plans to increase to 30 centers by year-end 2025. The company also expanded its commercial team to support this growth, and aims for a positive adjusted EBITDA, having reached $4.6 million in Q4. Key R&D initiatives include expanding HEPZATO's indications, with a Phase 2 trial for metastatic CRC slated for the second half of 2025, targeting a market of 6,000 to 10,000 patients annually.Delcath Systems Corporate Events
Financial Disclosures
Delcath Systems Reports Strong 2024 Financial Performance
Positive
Jan 13, 2025
Delcath Systems announced preliminary, unaudited financial results for the fourth quarter and full year 2024, reporting expected revenues of $15.1 million for the quarter and $37.2 million for the year. The company highlighted strong sales from its HEPZATO KIT, and maintained a robust cash position of $53.2 million with no debt, suggesting stable financial health and positive operational performance going forward.
Private Placements and Financing
Delcath Systems Secures $16.3M from Warrant Exercise
Positive
Dec 30, 2024
Delcath Systems announced the exercise of 1.7 million Series E and E1 warrants, resulting in $16.3 million in funding. This financial boost positions Delcath to strengthen its commercialization efforts for HEPZATO and invest in new clinical trials, enhancing its market position in the oncology sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.