Delcath Systems (DCTH) AI Stock Analysis

• Market Cap: $441.94M
• Dividend Yield: N/A
• Average Volume (3M): 696.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 1068.87%
• EPS Growth: 81.29%
• Country: US
• Employees: 96
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Specialties
• EPS (TTM): 0.03
• Shares Outstanding: 34,826,183
• 10 Day Avg. Volume: 1,095,582
• 30 Day Avg. Volume: 696,197
• 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 Cap: 0.09
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: $24.60
• Price Target Upside: 93.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: $12.50 ▼(-1.50%Downside)

Delcath Systems' overall score is driven by strong revenue growth and positive corporate events, but is weighed down by ongoing profitability challenges and bearish technical indicators. The company's strategic initiatives and positive earnings call sentiment provide a potential upside.

Positive Factors

Market Expansion

Hepzato's entrance into the Medicaid 340B program could expand uptake and adoption, far outweighing additional rebates.

Market Opportunities

There are large revenue opportunities ahead for Hepzato in breast and colorectal cancer, with potential market size reaching ~$2B in colorectal cancer and ~$1B in breast cancer.

Revenue Growth

Delcath reported $19.8M in total revenue for 1Q25, over 500% YoY up from $3.1M in 1Q24.

Negative Factors

Pricing Strategy

Delcath plans to participate in 340b program and introduce a ~23.1% discount on Hepzato sold to all 340b hospitals.

Rebate Impact

Participating in the NDRA program is intended to expand patient access through rebates and 340B discounts to eligible hospitals.

Delcath Systems Business Overview & Revenue Model

Company Description

Delcath Systems, Inc., an interventional oncology company, focuses on the treatment of primary and metastatic liver cancers in the United States and Europe. The company's lead product candidate is HEPZATO KIT, a melphalan for injection/hepatic delivery system to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. Its clinical development program for HEPZATO is the FOCUS clinical trial for patients with metastatic hepatic dominant Uveal Melanoma to investigate objective response rate in metastatic uveal melanoma. It also provides HEPZATO as a stand-alone medical device under the CHEMOSAT Hepatic Delivery System trade name for Melphalan or CHEMOSAT for medical centers to treat a range of liver cancers in Europe. Delcath Systems, Inc. was incorporated in 1988 and is headquartered in New York, New York.

How the Company Makes Money

Delcath 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 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.

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.

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.

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
EBITDA	-3.53M	-12.18M	-46.11M	-33.69M	-24.00M	-23.79M
Net Income	-14.21M	-26.39M	-47.68M	-39.16M	-26.76M	-24.48M
Balance Sheet
Total Assets	87.32M	76.59M	38.61M	17.86M	33.12M	34.63M
Cash, Cash Equivalents and Short-Term Investments	58.90M	53.23M	32.45M	7.67M	22.80M	28.57M
Total Debt	1.02M	1.04M	10.19M	15.87M	16.25M	2.94M
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

• Technical Analysis Sentiment: Negative
• Last Price: 12.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCTH, the sentiment is Negative. The current price of 12.69 is below the 20-day moving average (MA) of 14.53, below the 50-day MA of 14.61, and above the 200-day MA of 12.65, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 33.81 is Neutral, neither overbought nor oversold. The STOCH value of 7.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DCTH.

Delcath Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUTL	53 Neutral	$630.76M	―	-49.91%	―	-14.16%	25.88%
SRDX	52 Neutral	$428.83M	―	-16.96%	―	-14.96%	-245.49%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%
DCTH	49 Neutral	$441.94M	―	-29.95%	―	1068.87%	81.29%
KROS	46 Neutral	$546.28M	―	0.71%	―	91657.69%	97.21%
ORIC	43 Neutral	$920.42M	―	-48.45%	―	―	7.15%
ERAS	34 Underperform	$407.93M	―	-45.82%	―	―	10.38%

Delcath Systems Corporate Events

Delcath Systems Announces 2025 Financial Guidance

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.

Delcath Systems Shareholders Approve Key Amendments at Meeting

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.