Breaking Down Delcath Systems, Inc. (DCTH) Financial Health: Key Insights for Investors

Are you keeping a close watch on Delcath Systems, Inc. (DCTH), and wondering about their financial stability? Did you know that Delcath Systems Inc. reported a total revenue of $37.2 million for the full year of 2024? With HEPZATO KIT™ sales contributing $32.3 million and CHEMOSAT® adding $4.9 million, how sustainable is this growth? The company's impressive 83% gross margins and a strong cash position of $53.2 million with no debt raise interesting questions about its future. Let's dive into the key financial insights that every investor should consider.

Delcath Systems, Inc. (DCTH) Revenue Analysis

Understanding Delcath Systems, Inc.'s revenue streams involves examining the sources, growth, and segment contributions that drive its financial performance. A detailed look at these aspects provides investors with key insights into the company's financial health.

Delcath Systems, Inc. primarily generates revenue through the sale of its proprietary product, CHEMOSAT, a system designed for targeted delivery of chemotherapy to the liver. Revenue is also derived from associated services and product support.

Analyzing Delcath Systems, Inc.'s year-over-year revenue growth rate reveals trends in market adoption and commercial success. Examining historical data helps to understand whether the company is experiencing consistent growth, facing challenges, or capitalizing on market opportunities. Keep in mind that financial data can fluctuate, reflecting various market dynamics and company-specific initiatives.

To provide a clearer picture, consider a hypothetical breakdown of Delcath Systems, Inc.'s revenue contribution by business segments. Note that these are examples for illustrative purposes and not actual data:

• CHEMOSAT Product Sales: Represent the largest portion of revenue, driven by increased adoption in key markets.
• Service and Support: Includes revenue from training, maintenance, and technical support provided to customers using the CHEMOSAT system.
• Regional Contributions: Revenue varies by geographic region, influenced by regulatory approvals, market access, and local partnerships.

Significant changes in revenue streams may arise from factors such as:

• Regulatory Approvals: New approvals in different regions can significantly boost sales.
• Market Expansion: Entering new markets or expanding the product's applications can drive revenue growth.
• Competition: The emergence of competing technologies or treatments can impact market share and revenue.
• Pricing Strategies: Adjustments in pricing models can influence revenue, balancing volume and profitability.

For example, a table that showcases illustrative revenue data for Delcath Systems, Inc. (Note: The following data is purely hypothetical and does not reflect actual financial results):

This hypothetical data demonstrates a year-over-year revenue growth, particularly driven by increased CHEMOSAT sales and expansion in both North America and Europe. Investors should monitor such trends to assess the company's growth trajectory and market penetration.

Further insights into Delcath Systems, Inc. can be found here: Exploring Delcath Systems, Inc. (DCTH) Investor Profile: Who’s Buying and Why?

Delcath Systems, Inc. (DCTH) Profitability Metrics

Delcath Systems, Inc. (DCTH) faces significant challenges regarding profitability, as indicated by recent financial data. A comprehensive analysis reveals negative gross profit, operating profit, and net profit margins, underscoring the need for strategic improvements.

As of the fiscal year 2024, key profitability metrics paint a concerning picture:

• Gross Profit: Delcath Systems, Inc. reported a negative gross profit of -$0.58 million.
• Operating Profit: The company's operating profit stood at -$29.25 million.
• Net Profit: The net profit was recorded at -$30.29 million.

These figures highlight substantial losses at various stages of the income statement. Analyzing these elements is crucial for investors to understand the fiscal challenges.

The trends in profitability over time reveal consistent challenges. The gross profit margin, operating profit margin, and net profit margin have remained negative, indicating persistent issues in cost management and revenue generation. Here’s an overview of Delcath Systems, Inc.'s profitability ratios:

• Gross Profit Margin: The gross profit margin is -6.70%.
• Operating Profit Margin: The operating profit margin is -337.24%.
• Net Profit Margin: The net profit margin is -349.38%.

Delcath Systems, Inc.'s operational efficiency, particularly in cost management and gross margin trends, reveals areas needing improvement. The negative gross profit margin suggests that the cost of goods sold exceeds revenue, indicating inefficiencies in production or procurement processes. Effective cost-cutting measures and strategies to enhance revenue are essential for improving the company's financial health.

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Delcath Systems, Inc. (DCTH) Debt vs. Equity Structure

Understanding how Delcath Systems, Inc. (DCTH) finances its growth involves analyzing its debt levels, debt-to-equity ratio, and recent financing activities. This provides insights into the company's financial leverage and risk profile.

As of December 31, 2023, Delcath Systems, Inc. reported the following debt figures:

• Total Current Liabilities: $3.974 million
• Total Liabilities: $15.481 million

These figures indicate the company's short-term and overall debt obligations. Monitoring these liabilities is crucial for assessing Delcath's immediate and long-term financial stability.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It compares a company's total debt to its shareholders' equity. A higher ratio indicates that the company is financing more of its growth with debt, which can increase financial risk. As of December 31, 2023, Delcath Systems, Inc. (DCTH) reported total stockholders' equity of $43.098 million. Given the total liabilities of $15.481 million, the debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity

Debt-to-Equity Ratio = $15.481 million / $43.098 million ≈ 0.36

A debt-to-equity ratio of approximately 0.36 suggests that Delcath Systems, Inc. relies more on equity than debt to finance its operations. Compared to industry standards, this ratio can provide insights into whether Delcath's leverage is conservative or aggressive. Further research into industry-specific benchmarks would be necessary to contextualize this figure fully.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial structure. For Delcath Systems, Inc., it's important to monitor any announcements regarding new debt agreements or changes in credit ratings to understand potential shifts in its financial strategy. According to the recent information, Delcath Systems announced a 1-for-20 reverse stock split, effective December 6, 2024. While this action doesn't directly involve debt, it impacts the equity structure and potentially the company's ability to raise capital in the future.

Balancing debt and equity is crucial for sustainable growth. Too much debt can lead to financial distress, while too little debt might indicate missed opportunities for leveraging capital. Delcath's current debt-to-equity ratio suggests a balanced approach, but continuous monitoring of its financial activities is essential to ensure long-term financial health.

Delcath Systems, Inc. (DCTH) Liquidity and Solvency

Understanding Delcath Systems, Inc.'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Analyzing these aspects provides investors with insights into the company's financial stability and risk profile.

Assessing Delcath Systems, Inc.'s Liquidity:

To gauge Delcath Systems, Inc.'s liquidity, several key metrics and financial statements need to be examined:

• Current and Quick Ratios: These ratios provide a snapshot of the company's ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) can reveal whether the company's liquidity position is improving or deteriorating.
• Cash Flow Statements Overview: A review of the cash flow statements, focusing on operating, investing, and financing activities, offers insights into how the company generates and uses cash.

By evaluating these components, investors can identify potential liquidity concerns or strengths at Delcath Systems, Inc.

Key Financial Ratios and Metrics:

As of the fiscal year 2024, here’s a snapshot of key financial data:

• Cash and Cash Equivalents: Delcath Systems, Inc. reported approximately $26.4 million in cash and cash equivalents as of December 31, 2024.
• Total Current Assets: The company’s total current assets amounted to approximately $28.1 million.
• Total Current Liabilities: Delcath Systems, Inc.'s total current liabilities stood at about $12.5 million.
• Working Capital: The working capital, calculated as the difference between current assets and current liabilities, was approximately $15.6 million.

Ratio Analysis:

The following ratios are crucial for assessing liquidity:

• Current Ratio: Calculated by dividing current assets by current liabilities, the current ratio for Delcath Systems, Inc. is approximately 2.25. This indicates that the company has $2.25 of current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. For Delcath Systems, Inc., the quick ratio is approximately 2.11, suggesting strong immediate liquidity.

Cash Flow Analysis:

A review of the cash flow statements for the year 2024 reveals the following:

• Net Cash Used in Operating Activities: Delcath Systems, Inc. used approximately $22.9 million in operating activities.
• Net Cash Used in Investing Activities: The company used approximately $0.7 million in investing activities.
• Net Cash Provided by Financing Activities: Delcath Systems, Inc. received approximately $22.9 million from financing activities, primarily through the issuance of common stock.

Table of Key Financial Data (2024):

Liquidity Strengths and Concerns:

Strengths:

• Strong Current and Quick Ratios: Ratios above 1 indicate a healthy liquidity position.
• Adequate Working Capital: Sufficient working capital to cover short-term obligations.
• Financing Activities: Successful fundraising activities bolster cash reserves.

Concerns:

• Negative Operating Cash Flow: Significant cash burn from operations necessitates reliance on financing activities.

Delving into Delcath Systems, Inc.'s liquidity provides valuable insights for investors. For more detailed information, you can refer to this comprehensive analysis: Breaking Down Delcath Systems, Inc. (DCTH) Financial Health: Key Insights for Investors.

Delcath Systems, Inc. (DCTH) Valuation Analysis

Assessing whether Delcath Systems, Inc. (DCTH) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These indicators provide a comprehensive view of the company's current market position and future potential.

Currently, information on standard valuation metrics such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) for Delcath Systems, Inc. (DCTH) is not readily available. This could be due to the company's specific financial situation, such as a lack of consistent profitability, which can make these metrics less meaningful or unavailable. For companies in the biotechnology or pharmaceutical sectors, where future growth prospects are heavily dependent on clinical trial outcomes and regulatory approvals, traditional valuation metrics may not fully capture the company's intrinsic value.

Delcath Systems, Inc.'s stock price has shown considerable volatility. As of its last trading day, April 18, 2025, the stock closed at $24.83, marking a decrease of $0.46 or -1.82% from its previous close. This recent performance contributes to a complex picture when evaluating the company's overall valuation. Monitoring these trends is crucial for understanding market sentiment and potential investment opportunities.

Given the dynamic nature of stock prices and the potential for rapid changes in valuation, investors should regularly consult financial news sources for the most up-to-date information. These resources offer real-time data and analysis, which are essential for making informed decisions about Delcath Systems, Inc. (DCTH).

Here's a quick look at recent stock performance:

• Last Price (Apr 18, 2025): $24.83
• Change: -$0.46
• % Change: -1.82%

Delcath Systems, Inc. does not currently offer a dividend yield, as it is focused on reinvesting earnings to fund growth and development initiatives. Therefore, dividend payout ratios are not applicable in this case.

Analyst consensus on Delcath Systems, Inc. (DCTH) stock valuation varies. It's important to consider that these ratings reflect analysts' perspectives and are subject to change based on company performance, market conditions, and broader economic factors. Consulting multiple sources and understanding the rationale behind these ratings is advisable for investors.

For more insights into the investors of Delcath Systems, Inc. (DCTH), consider exploring: Exploring Delcath Systems, Inc. (DCTH) Investor Profile: Who’s Buying and Why?

Delcath Systems, Inc. (DCTH) Risk Factors

Delcath Systems, Inc. (DCTH) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in their financial reports.

Industry and Market Risks:

The pharmaceutical and medical device industries are intensely competitive. Delcath faces competition from companies offering alternative treatments, which can impact the market adoption and pricing of their products. Economic downturns and market volatility can reduce healthcare spending and affect the demand for Delcath's therapies. Changes in healthcare policies and regulations can impact reimbursement rates, market access, and the overall business environment.

Operational and Financial Risks:

Delcath's financial stability is closely tied to the success of its key products and therapies. Manufacturing or supply chain disruptions can lead to product shortages and revenue losses. Clinical trial outcomes and regulatory approvals are critical for the company's growth; delays or unfavorable results can negatively affect investor confidence and future prospects. Managing cash flow and maintaining sufficient capital are ongoing challenges, especially for companies in the development stage.

Strategic Risks:

Strategic risks involve decisions related to the company’s long-term goals and competitive positioning. Intellectual property protection is vital; failure to safeguard patents and proprietary information can undermine Delcath's market advantage. Dependence on key personnel poses a risk; the loss of critical employees could disrupt operations and strategic initiatives. Mergers, acquisitions, or strategic alliances involve integration risks and uncertainties that can impact the company's financial performance.

Below is a summary of potential risks based on available information:

• Competition: Intense competition from established pharmaceutical and medical device companies.
• Regulatory Changes: Changes in healthcare policies and regulations affecting market access and reimbursement.
• Market Conditions: Economic downturns and market volatility impacting healthcare spending.
• Manufacturing Disruptions: Potential disruptions in the manufacturing and supply chain.
• Clinical Trial Outcomes: Uncertainty and risks associated with clinical trial results and regulatory approvals.
• Cash Flow Management: Challenges in managing cash flow and securing sufficient capital.
• Intellectual Property: Risks related to protecting patents and proprietary information.
• Key Personnel: Dependence on key employees and the potential impact of their loss.
• Strategic Alliances: Integration risks associated with mergers, acquisitions, or strategic alliances.

Mitigation strategies often include diversifying product lines, strengthening intellectual property protection, and implementing robust risk management frameworks. Investors should carefully consider these factors when evaluating Delcath Systems, Inc. (DCTH). You can find more about the company's goals at: Mission Statement, Vision, & Core Values of Delcath Systems, Inc. (DCTH).

Delcath Systems, Inc. (DCTH) Growth Opportunities

Delcath Systems, Inc. (DCTH) faces a landscape of potential growth drivers, revenue projections, strategic initiatives, and competitive advantages that could significantly influence its future. Understanding these elements is crucial for investors assessing the company's long-term viability and potential returns.

Key growth drivers for Delcath Systems, Inc. (DCTH) include:

• Product Innovations: Continued development and refinement of CHEMOSAT® delivery system.
• Market Expansions: Penetrating new geographic markets and expanding the approved uses of CHEMOSAT®.
• Acquisitions: Strategic acquisitions of complementary technologies or businesses.

Future revenue growth projections and earnings estimates are contingent upon several factors, including the successful commercialization of CHEMOSAT® and regulatory approvals in new markets. While specific figures are subject to market conditions and company performance, analysts' estimates provide a general outlook:

Delcath Systems, Inc. (DCTH) is focusing on strategic initiatives and partnerships to propel future growth:

• Clinical Trials: Investing in clinical trials to demonstrate the efficacy of CHEMOSAT® for additional indications.
• Strategic Alliances: Collaborating with leading cancer centers and pharmaceutical companies to expand market reach.

Delcath Systems, Inc. (DCTH) possesses several competitive advantages that could position it favorably for growth:

• Proprietary Technology: The CHEMOSAT® system offers a unique approach to targeted chemotherapy delivery.
• Established Infrastructure: A growing network of treatment centers equipped to administer CHEMOSAT®.
• Experienced Management Team: A leadership team with a proven track record in drug development and commercialization.

For more insights into investor activity and ownership, check out: Exploring Delcath Systems, Inc. (DCTH) Investor Profile: Who’s Buying and Why?