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Delcath Systems (DCTH)
NASDAQ:DCTH
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Delcath Systems
(NASDAQ:DCTH)
Rating:61Neutral
Price Target:
$17.00
▲(6.52%Upside)
Positive Factors
Financial Guidance
Delcath also guided gross margin of 83%-85% and positive cash flow in the rest of 2025 quarters, both encouraging metrics for the year.
Market Expansion
Delcath plans to initiate two Phase 2 studies to evaluate HEPZATO in combination with standard-of-care in liver-dominant metastatic colorectal and breast cancers, potentially expanding the market size for HEPZATO by over 10 times.
Revenue Performance
Delcath reported $19.8M in total revenue for 1Q25, over 500% YoY up from $3.1M in 1Q24.
Negative Factors
Discount Impact
Maintain BUY, $21 price target based on expectation for continued, sustained multi-leg growth for Hepzato despite price discount.
Pricing Strategy
Delcath plans to participate in 340b program and introduce a ~23.1% discount on Hepzato sold to all 340b hospitals.
Rebate Implications
Hepzato entrance into Medicaid 340B could expand uptake and adoption, far outweighing additional rebates.
Delcath Systems (DCTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$564.53M
Dividend YieldN/A
Average Volume (3M)524.31K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth1068.87%
EPS Growth81.29%
CountryUS
Employees96
SectorHealthcare
Sector Strength44
IndustryMedical - Specialties
Share Statistics
EPS (TTM)0.03
Shares Outstanding34,826,183
10 Day Avg. Volume486,887
30 Day Avg. Volume524,309
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)-5.45
Price to Sales (P/S)0.00
P/FCF Ratio-1.27
Enterprise Value/Market Cap0.07
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit0.88
Enterprise Value/Ebitda-0.36
Forecast
1Y Price Target
$24.60Price Target Upside54.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Delcath Systems Business Overview & Revenue Model
Company DescriptionDelcath Systems, Inc. is a medical technology company focused on the development and commercialization of proprietary therapies to treat primary and metastatic liver cancers. The company's innovative product, the CHEMOSAT/Melphalan/HDS system, is designed to deliver high-dose chemotherapy to the liver while minimizing systemic exposure and potential side effects. Delcath Systems operates within the healthcare and biotechnology sectors, aiming to improve treatment outcomes and quality of life for patients with liver cancer.
How the Company Makes MoneyDelcath Systems makes money primarily through the commercialization of its CHEMOSAT/Melphalan/HDS system, which is sold to hospitals and cancer treatment centers. The company's revenue model includes direct sales of the device and associated consumables required for its operation. Delcath may also engage in strategic partnerships with healthcare providers and institutions to expand the adoption and distribution of its technology. Additionally, the company might explore licensing agreements or collaborations to broaden the reach of its therapies globally, contributing to its earnings.
Delcath Systems Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 37.47%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Delcath Systems, with strong revenue growth, an increase in active treatment centers, and positive financial metrics highlighting the quarter. However, challenges with European reimbursement and rising expenses tempered the overall sentiment.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Combined revenue for HEPZATO and CHEMOSAT reached $19.8 million in Q1 2025, with HEPZATO contributing $18 million and CHEMOSAT contributing $1.8 million. This represents significant growth compared to the previous year.
Increased Active Centers
The company ended Q1 2025 with 17 treating sites and opened an additional two centers, bringing the total to 19 active centers in the U.S., with 10 more centers pending activation.
Positive Financial Metrics
Delcath Systems reported positive cash from operations of $2.2 million, net income of $1.1 million, and a positive adjusted EBITDA of $7.6 million for Q1 2025. The company also ended the quarter with no debt and $59 million in cash and investments.
European Market Growth
The European market for CHEMOSAT grew by 29% over the prior quarter to $1.8 million, despite reimbursement challenges.
Pipeline Expansion
FDA clearance was received for Phase II trials in metastatic colorectal and breast cancer, with plans to start by the end of 2025.
Negative Updates
Reimbursement Challenges in Europe
Despite growth, the European market faces significant reimbursement and pricing challenges, limiting its short-to-medium-term contribution to revenue.
Increase in Operating Expenses
Research and development expenses increased to $5 million from $3.7 million, and selling, general, and administrative expenses rose to $11.3 million from $8.8 million compared to the same period in 2024.
Company Guidance
During the Delcath Systems' First Quarter 2025 Earnings Call, the company reported significant financial and operational achievements. They announced a combined revenue of $19.8 million, with HEPZATO sales contributing $18 million in the U.S. and CHEMOSAT sales adding $1.8 million in Europe. The company ended the quarter with 19 active treating centers in the U.S., up from 17, and a strong financial position with a net income of $1.1 million and positive cash flow from operations of $2.2 million. Delcath's adjusted EBITDA was reported at $7.6 million, and they held $59 million in cash and investments with no debt. Looking ahead, Delcath aims to have 30 active centers by year-end and is actively expanding its reach by increasing its sales territories from four to six, each supported by a specialized team. The company is also advancing clinical trials for liver-dominant metastatic colorectal and breast cancer, with patient enrollment expected to begin later in 2025. These efforts are part of Delcath's broader strategy to expand the applications of its liver treatment platform beyond metastatic uveal melanoma.Delcath Systems Financial Statement Overview
Summary
Delcath Systems shows strong revenue growth, yet faces significant challenges in achieving profitability and positive cash flows. The strong equity position is a positive indicator of financial stability, but persistent cash flow issues and operating losses highlight the need for strategic improvements.Income Statement
The income statement shows a significant increase in revenue over the last period, from $37.2 million to $52.2 million, marking a strong growth trajectory. However, the company remains unprofitable, with negative EBIT and net income margins, indicating ongoing operational challenges. The gross profit margin is healthy at approximately 87.5%, but the inability to convert this into net profits is a major area of concern.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with stockholders' equity at $80.23 million, leading to a favorable equity ratio. The debt-to-equity ratio is low, suggesting minimal leverage risk. However, the company has consistently reported negative equity in previous years, which could imply volatility in financial stability.55
Neutral
Cash Flow
Cash flow analysis reveals negative free cash flow of $7.58 million in the TTM, indicating cash burn issues. The operating cash flow to net income ratio is also negative, reflecting difficulties in turning operations into cash. This trend emphasizes the need for improved cash management strategies.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 52.21M | 37.20M | 2.06M | 2.72M | 3.56M | 1.65M | Gross Profit |
| 45.72M | 31.02M | 1.43M | 2.03M | 2.88M | 1.01M | EBIT |
| -1.49M | -12.41M | -38.18M | -33.85M | -24.53M | -21.30M | EBITDA |
| -3.53M | -12.18M | -46.11M | -33.69M | -24.00M | -23.79M | Net Income Common Stockholders |
| -14.21M | -26.39M | -47.68M | -39.16M | -26.76M | -24.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 58.90M | 53.23M | 32.45M | 7.67M | 22.80M | 28.57M | Total Assets |
| 87.32M | 76.59M | 38.61M | 17.86M | 33.12M | 34.63M | Total Debt |
| 1.02M | 1.04M | 10.19M | 15.87M | 16.25M | 2.94M | Net Debt |
| -11.76M | -31.37M | -2.46M | 8.20M | -6.55M | -25.63M | Total Liabilities |
| 7.09M | 7.84M | 22.84M | 23.72M | 21.17M | 12.56M | Stockholders Equity |
| 80.23M | 68.75M | 15.78M | -5.86M | 11.95M | 22.08M |
| Cash Flow | Free Cash Flow | ||||
| -7.58M | -19.24M | -31.31M | -25.16M | -22.75M | -23.65M | Operating Cash Flow |
| -6.89M | -18.68M | -31.25M | -24.95M | -22.60M | -22.87M | Investing Cash Flow |
| -30.79M | -981.00K | -19.71M | -209.00K | -143.00K | -782.00K | Financing Cash Flow |
| 38.64M | 39.41M | 51.78M | 10.14M | 20.82M | 42.35M |
Delcath Systems Technical Analysis
Positive
15.96
Price Trends
13.86
Positive
14.19
Positive
12.35
Positive
Market Momentum
0.58
Positive
53.23
Neutral
19.61
Positive
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 15.96 is below the 20-day moving average (MA) of 16.51, above the 50-day MA of 13.86, and above the 200-day MA of 12.35, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.61 is Positive, 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $564.53M | ― | -29.95% | ― | 1068.87% | 81.29% | |
55 Neutral | $620.11M | ― | -49.97% | ― | -14.16% | 25.80% | |
54 Neutral | $5.38B | 3.40 | -45.06% | 3.28% | 16.75% | -0.02% | |
52 Neutral | $417.54M | ― | -16.96% | ― | -14.96% | -245.49% | |
46 Neutral | $558.46M | ― | 0.71% | ― | 91657.69% | 97.21% | |
43 Neutral | $693.11M | ― | -48.45% | ― | ― | 7.15% | |
34 Underperform | $456.09M | ― | -45.82% | ― | ― | 10.38% |
* Healthcare Sector Average
Performance Comparison
DCTH
Delcath Systems
15.96
8.54
115.09%
SRDX
SurModics
28.99
-13.01
-30.98%
AUTL
Autolus Therapeutics
2.24
-2.29
-50.55%
KROS
Keros Therapeutics
13.79
-35.71
-72.14%
ORIC
Oric Pharmaceuticals
9.39
1.71
22.27%
ERAS
Erasca
1.52
-0.66
-30.28%
Delcath Systems Corporate Events
Business Operations and StrategyFinancial Disclosures
Delcath Systems Announces 2025 Financial Guidance
Positive
May 22, 2025
On May 22, 2025, Delcath Systems announced its full-year 2025 financial guidance, projecting total revenue between $94 to $98 million, marking a significant increase of over 150% from 2024. The company also plans to enter into a National Medicaid Drug Rebate Agreement with the Centers for Medicare & Medicaid Services, expected to take effect in the third quarter of 2025, which aims to expand patient access and accelerate the adoption of its HEPZATO treatment in the U.S.
The most recent analyst rating on (DCTH) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Delcath Systems stock, see the DCTH Stock Forecast page.
Shareholder MeetingsBusiness Operations and Strategy
Delcath Systems Shareholders Approve Key Amendments at Meeting
Positive
May 16, 2025
At the annual meeting on May 15, 2025, Delcath Systems‘ stockholders approved amendments to increase the number of shares available under the company’s 2020 Omnibus Equity Incentive Plan and 2021 Employee Stock Purchase Plan. Additionally, stockholders elected Class I directors, ratified the selection of the company’s independent public accounting firm, and approved a non-binding advisory vote on executive compensation, reflecting shareholder support for the company’s strategic initiatives.
The most recent analyst rating on (DCTH) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Delcath Systems stock, see the DCTH Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.