One-glance verdict
Undervalued
$54.95 our estimate vs market $16.15
Wall Street consensus: $24.00 (-56.3% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
Delcath Systems, Inc.
DCTH · NCM · Healthcare · Medical Devices
Current price
$16.15
52-week range
$8.12 - $17.42
Market cap
$560.39M
Balance sheet
Healthy
0.46x Concerning
Net cash $93.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 12.0% last year.
- Reward Returns 0.5% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 1/10 years.
- Risk Stock trades 1019.3% above its 5-year average P/E.
What this company does
Delcath Systems, Inc.
Delcath Systems is a medical company that created a special treatment for liver cancer called the HEPZATO KIT. Their system delivers powerful chemotherapy directly to the liver, which helps limit harsh side effects for the rest of the patient's body. The company's success depends on getting approval from health regulators and convincing doctors and hospitals to use its treatment.
How the company got here
Founded in 1988, Delcath Systems is a company focused on developing treatments for cancers in the liver. A major turning point was the U.S. Food and Drug Administration (FDA) approval of its key product, the HEPZATO KIT, in August 2023. This approval came after a long journey, including an initial rejection by the FDA a decade earlier, and marked the company's transition to a commercial-stage entity, meaning it could now actively sell its approved product in the U.S. Before the U.S. approval, the company's technology was already available in Europe under a different name. This long-term focus on a specific type of cancer treatment and the eventual regulatory green light have been central to shaping the company.
What it actually does
Delcath provides a specialized system for treating cancers that have spread to the liver. Think of it as a way to give a high-powered cleaning just to the liver without the cleaning solution spreading to the rest of the house. The company's technology allows doctors to temporarily separate the liver's blood flow from the rest of the body, deliver a strong dose of chemotherapy directly to the liver, and then filter the blood to remove most of the drug before returning it to the body. This process aims to attack the cancer in the liver more aggressively while reducing the harmful side effects that often come with traditional chemotherapy that circulates everywhere.
HEPZATO KIT (U.S. Market)
This is the company's main product and primary source of revenue, sold to hospitals and cancer centers in the United States. The HEPZATO KIT is a combination of a chemotherapy drug called melphalan and the company's special device, the Hepatic Delivery System (HDS). It is specifically approved by the FDA to treat a rare and aggressive eye cancer called uveal melanoma that has spread to the liver. This segment represents the vast majority of the company's sales.
CHEMOSAT Hepatic Delivery System (European Market)
In Europe, the company sells its device as a stand-alone product called CHEMOSAT. Unlike in the U.S., where it's sold as a kit with a specific drug, European medical centers buy the CHEMOSAT device and can use it to deliver chemotherapy for a wider variety of liver cancers. This business line is a smaller, but established, part of the company's overall revenue.
What management is betting on now
The company's main strategy is to get more hospitals and cancer centers in the U.S. to start using the newly approved HEPZATO KIT. A major part of their bet is on expanding the use of their technology to treat other types of cancer that have spread to the liver, such as colorectal and breast cancer. To do this, they are running new clinical trials (studies to test the safety and effectiveness of a medical treatment) to get FDA approval for these additional uses. Success in these trials could significantly increase the number of patients who could be treated with their system.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-3.86M
FY2024 Q4
$-1.24M
FY2025 Q1
$2.06M
FY2025 Q2
$6.89M
FY2025 Q3
$4.31M
FY2025 Q4
$7.70M
FY2026 Q1
$287.00K
FY2026 Q2
$5.21M
Revenue
$29.13M
Net income
$2.67M
Diluted EPS
0.07
Operating cash flow
$5.71M
Free cash flow
$5.21M
Fetching…
Sources
Revenue
$24.99M
Net income
$-1.07M
Diluted EPS
-0.03
Operating cash flow
$857.00K
Free cash flow
$287.00K
Fetching…
Sources
Revenue
$20.73M
Net income
$-1.90M
Diluted EPS
-0.05
Operating cash flow
$8.25M
Free cash flow
$7.70M
Fetching…
Sources
Revenue
$20.56M
Net income
$830.00K
Diluted EPS
0.02
Operating cash flow
$4.77M
Free cash flow
$4.31M
Fetching…
Sources
Revenue
$24.16M
Net income
$2.70M
Diluted EPS
0.07
Operating cash flow
$7.29M
Free cash flow
$6.89M
Fetching…
Sources
Revenue
$19.78M
Net income
$1.07M
Diluted EPS
0.03
Operating cash flow
$2.20M
Free cash flow
$2.06M
Fetching…
Sources
Revenue
$15.10M
Net income
$-3.40M
Diluted EPS
-0.06
Operating cash flow
$-1.01M
Free cash flow
$-1.24M
Fetching…
Sources
Revenue
$11.20M
Net income
$1.86M
Diluted EPS
0.06
Operating cash flow
$-3.64M
Free cash flow
$-3.86M
Fetching…
Sources
Is it cheap or expensive?
Fair value $54.95 vs current price $16.15
Wall Street consensus is the average analyst price target: $24.00 (-56.3% lower than our fair-value estimate).
Our most-likely fair value is $54.95 a share — about 240.2% above today's price of $16.15, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $93.4M - more cash than debt. Interest coverage 0.5x.
Net debt
$-93.44M
Interest coverage
0.46x
Delcath Systems, Inc.'s profit covers its interest bill about 0.5 times over. which is stronger than every peer shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DCTH
BASELINE
Delcath Systems, Inc.
Total debt $2.46M Interest coverage 0.46x This is the baseline the peer rows are being compared against.
Total debt $10.96M Interest coverage -8.26x -100% vs DCTH This peer has almost no interest-payment cushion compared with DCTH.
Total debt $434.96M Interest coverage -3.73x -100% vs DCTH This peer has almost no interest-payment cushion compared with DCTH.
Total debt $233.42M Interest coverage -9.03x -100% vs DCTH This peer has almost no interest-payment cushion compared with DCTH.
Total debt $76.80M Interest coverage -1.04x -100% vs DCTH This peer has almost no interest-payment cushion compared with DCTH.
Total debt $42.80M Interest coverage -8.50x -100% vs DCTH This peer has almost no interest-payment cushion compared with DCTH.
What you should know
The case for and against DCTH
3 Rewards
1 Risk
Rewards
-
Revenue grew 12.0% last year.
-
Returns 0.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Stock trades 1019.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
1,615.00x
Forward P/E
358.89x
P/B
4.62x
P/S
5.87x
EV/EBITDA
-319.97x
PEG ratio
1.60x
Profitability
How much profit each dollar creates
Gross margin
87.1%
Operating margin
8.2%
Net margin
0.6%
ROE
0.5%
ROA
-0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
9.83x
Quick ratio
8.45x
Total debt
$2.46M
Total cash
$95.90M
Growth
How the business has been compounding
Revenue TTM
$95.42M
Revenue 5Y CAGR
136.7%
EPS TTM
0.01
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$19.59M
Free CF TTM
$20.97M
FCF margin
22.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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