FMP

FMP

Delcath Systems, Inc. (NASDAQ:DCTH) Financial Performance and Competitive Landscape

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Google Images

Delcath Systems, Inc. (NASDAQ:DCTH) is a medical technology company focused on oncology. It develops and commercializes proprietary therapies to treat primary and metastatic liver cancers. The company's main product is the Hepatic Delivery System, which administers high-dose chemotherapy to the liver while minimizing systemic exposure. Delcath operates in a competitive landscape with peers like Interpace Biosciences, and Aeterna Zentaris.

In evaluating Delcath's financial performance, the Return on Invested Capital (ROIC) is a key metric. Delcath's ROIC is 3.58%, which is lower than its Weighted Average Cost of Capital (WACC) of 7.54%. This indicates that Delcath is not generating sufficient returns to cover its cost of capital, which can be a concern for investors looking for efficient capital use.

Comparatively, Interpace Biosciences shows a positive ROIC of 84.16% with a WACC of 9.04%, leading to a favorable ROIC to WACC ratio of 9.31, indicating better capital utilization.

EOM Pharmaceuticals Holdings stands out with an impressive ROIC of 1,140.12% and a WACC of 18.16%, resulting in the highest ROIC to WACC ratio of 62.77 among its peers. This suggests EOM is highly efficient in using its capital to generate returns, making it a potentially attractive investment. Meanwhile, Aeterna Zentaris and Rennova Health both have negative ROICs, indicating challenges in generating returns above their respective costs of capital.

Other Blogs

blog post title

Walk Me Through a DCF: A Simple Guide to Discounted Cash Flow Valuation

Are you curious about how professional investors decide whether a stock might be one of the best undervalued stocks to b...

blog post title

Technical Analysis 101: Understanding Support and Resistance

Technical analysis is a fundamental approach used by traders to forecast price movements based on historical market data...

blog post title

How an Economic Moat Provides a Competitive Advantage

Introduction In the competitive landscape of modern business, companies that consistently outperform their peers ofte...