Delcath Systems (DCTH) AI Stock Analysis

• Market Cap: $388.29M
• Dividend Yield: N/A
• Average Volume (3M): 702.42K
• Price to Earnings (P/E): 256.0
• Beta (1Y): 1.51
• Revenue Growth: 491.35%
• EPS Growth: N/A
• Country: US
• Employees: 96
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): 0.07
• Shares Outstanding: 34,981,255
• 10 Day Avg. Volume: 441,351
• 30 Day Avg. Volume: 702,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 6.82
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: 35.13
• 1Y Price Target: $22.75
• Price Target Upside: 95.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: $12.00 ▲(3.00% Upside)

Delcath Systems' overall stock score is driven by strong financial performance and positive earnings call sentiment, despite challenges in site activations and valuation concerns. The high P/E ratio suggests potential overvaluation, while technical indicators show mixed signals. The company's strategic expansions and trial prospects provide a positive outlook, but historical volatility in profitability and cash flow generation remains a risk.

Positive Factors

Adoption and Expansion

HEPZATO’s participation in the Medicaid National Drug Rebate Agreement (NDRA) program is expected to increase access and thus overall treatment volumes.

Market Opportunity

Delcath estimates a combined $1.0B market opportunity for Hepzato in liver metastases due to colorectal and breast cancer, an attractive long-term growth opportunity.

Revenue and Growth

Hepzato and Chemosat revenue beat consensus, signaling continued growth.

Negative Factors

Pricing Impact

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

Revenue Guidance

Management modestly lowered 2025 revenue guidance to $93M-$96M, from prior $94M-$98M.

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 generates revenue primarily through the sale of its Chemosaturation Technology System and associated consumables used in its procedures. The company may also earn revenue through collaborations, licensing agreements, and grants related to the development and commercialization of its therapies. Key revenue streams include reimbursement from healthcare providers and insurance companies for the use of its CTS in clinical settings. Additionally, strategic partnerships with research institutions or pharmaceutical companies can provide funding and support for clinical trials, which may further enhance Delcath's market presence and revenue potential.

Delcath Systems Financial Statement Overview

Summary

Delcath Systems shows promising 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	68.60M	37.20M	2.06M	2.72M	3.56M	1.65M
Gross Profit	60.31M	31.02M	1.43M	2.03M	2.88M	1.01M
EBITDA	13.31M	-12.18M	-46.11M	-33.69M	-24.00M	-23.79M
Net Income	2.23M	-26.39M	-47.68M	-39.16M	-26.76M	-24.48M
Balance Sheet
Total Assets	116.88M	76.59M	38.61M	17.86M	33.12M	34.63M
Cash, Cash Equivalents and Short-Term Investments	81.00M	53.23M	32.45M	7.67M	22.80M	28.57M
Total Debt	993.00K	1.04M	10.19M	15.87M	16.25M	2.94M
Total Liabilities	11.89M	7.84M	22.84M	23.72M	21.17M	12.56M
Stockholders Equity	104.99M	68.75M	15.78M	-5.86M	11.95M	22.08M
Cash Flow
Free Cash Flow	3.87M	-19.24M	-31.31M	-25.16M	-22.75M	-23.65M
Operating Cash Flow	4.85M	-18.68M	-31.25M	-24.95M	-22.60M	-22.87M
Investing Cash Flow	-41.49M	-981.00K	-19.71M	-209.00K	-143.00K	-782.00K
Financing Cash Flow	56.13M	39.41M	51.78M	10.14M	20.82M	42.35M

Delcath Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.65 is above the 20-day moving average (MA) of 10.79, above the 50-day MA of 11.33, and below the 200-day MA of 12.95, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 70.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DCTH.

Delcath Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCTH	63 Neutral	$388.29M	256.04	4.09%	―	491.35%	―
CLPT	61 Neutral	$314.98M	―	-85.68%	―	19.68%	-13.17%
TMCI	57 Neutral	$452.95M	―	-46.89%	―	7.67%	23.79%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SENS	46 Neutral	$364.98M	―	-102.61%	―	5.94%	25.16%
SRDX	43 Neutral	$477.40M	―	-15.36%	―	-0.02%	-1196.44%
NNOX	40 Underperform	$237.19M	―	-32.87%	―	17.36%	9.38%

Delcath Systems Corporate Events

Delcath Systems Updates Bylaws for Governance Efficiency

On August 12, 2025, Delcath Systems, Inc. amended and restated its Bylaws to clarify procedural requirements for stockholder nominations and proposals, update officer election provisions, and describe indemnification rights. These changes aim to modernize and streamline the company’s governance framework, potentially impacting its operational efficiency and stakeholder engagement.