Delcath Systems Inc. Common Stock (DCTH)

FairStock Score: 47/100 — MIXED

Key Financials

Strengths

• Generates $20 million in annual free cash flow (5.4% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 13.4 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 37.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($2) with negative 382% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration

AI Analysis

Delcath Systems Inc. Common Stock is a micro-cap healthcare company valued at $377 million. Revenue stands at $85 million, though the company is currently unprofitable. From a quality standpoint, Delcath shows Altman Z-Score of 13.4 confirms fortress-level solvency and modest 3% ROE. On valuation, the stock is commanding a steep 152.0x multiple, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 37.3% and profit growth of 44.2%. Our composite FairStock Score of 47/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Delcath's 37% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $20 million in annual free cash flow (5.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 152x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer