Share count
40Mpeak FY2025
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DCTH, Delcath Systems Inc.
We are an interventional oncology company focused on the treatment of cancers primary or metastatic to the liver.
In the United States, HEPZATO is considered a combination drug and device product and is regulated as a drug by the FDA.
As of March 1, 2022, we assumed direct responsibility for sales, marketing and distribution of CHEMOSAT in Europe.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$85M
+129.1% YoY · 121% 4-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $90M 5-yr avg $26M
Revenue $25M +26.3% vs yr-ago qtr
Operating margin −6.5% yr-ago 3.2%
Net income ($1M) yr-ago $1M
Net margin −4.3% yr-ago 5.4%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
- What moves the needle
- Operating margin has run around −690% through the cycle on a 81% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Inventory runs near 40% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −127%, above 15% in 0 of 4 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2021–2025
realized figures from each filing · older years to the left| 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| $4M | $3M | $2M | $37M | $85M | $90M | RevenueRevenue |
| 81% | 75% | 69% | 83% | 86% | 86% | Gross marginGross mgn |
| 384% | 636% | n/m | 79% | 51% | 50% | SG&A / revenueSG&A/rev |
| 388% | 683% | 848% | 37% | 34% | 38% | R&D / revenueR&D/rev |
| ($25M) | ($34M) | ($38M) | ($12M) | $660K | ($2M) | Operating incomeOp. inc. |
| −690.0% | n/m | n/m | −33.4% | 0.8% | −1.8% | Operating marginOp. mgn |
| ($26M) | ($37M) | ($48M) | ($26M) | $3M | $561K | Net incomeNet inc. |
| Cash flow & returns | ||||||
| ($23M) | ($25M) | ($31M) | ($19M) | $23M | $21M | Operating cash flowOp. cash |
| $146K | $132K | $128K | $134K | $238K | $297K | DepreciationDeprec. |
| $3M | $11M | $16M | $8M | $20M | $20M | Working capital & otherWC & other |
| $143K | $209K | $58K | $559K | $2M | $2M | CapexCapex |
| 4.0% | 7.7% | 2.8% | 1.5% | 1.8% | 2.2% | Capex / revenueCapex/rev |
| ($23M) | ($25M) | ($31M) | ($19M) | $22M | $21M | Owner earningsOwner earn. |
| −639.9% | −922.5% | n/m | −50.6% | 26.1% | 23.1% | Owner earnings marginOE mgn |
| ($23M) | ($25M) | ($31M) | ($19M) | $21M | $19M | Free cash flowFCF |
| −639.9% | −925.3% | n/m | −51.7% | 24.6% | 21.2% | Free cash flow marginFCF mgn |
| — | -1239% | -227% | -27% | 1% | -1% | ROICROIC |
| -215% | — | -302% | -38% | 2% | 0% | Return on equityROE |
| −215% | — | −302% | −38% | 2% | 0% | Retained to equityRetained/eq |
| Balance sheet | ||||||
| $23M | $8M | $13M | $32M | $43M | $41M | Cash & investmentsCash+inv |
| $44K | $366K | $241K | $11M | $12M | $14M | ReceivablesReceiv. |
| $1M | $2M | $3M | $7M | $10M | $10M | InventoryInvent. |
| $638K | $2M | $1M | $961K | $3M | $3M | Accounts payablePayables |
| $818K | $346K | $3M | $17M | $19M | $21M | Operating working capitalOper. WC |
| $31M | $16M | $37M | $74M | $120M | $120M | Current assetsCur. assets |
| $6M | $15M | $16M | $6M | $11M | $11M | Current liabilitiesCur. liab. |
| 5.2× | 1.1× | 2.3× | 12.0× | 10.9× | 11.2× | Current ratioCurr. ratio |
| $33M | $18M | $39M | $77M | $124M | $125M | Total assetsAssets |
| $5M | $16M | $10M | $0 | — | $5M | Total debtDebt |
| ($18M) | $8M | ($2M) | ($32M) | — | ($36M) | Net debt / (cash)Net debt |
| $12M | ($6M) | $16M | $69M | $111M | $113M | Shareholders’ equityEquity |
| Per share | ||||||
| 7.1M | 8.9M | 16.2M | 28.5M | 39.9M | 36.0M | Shares out (diluted)Shares |
| $0.50 | $0.31 | $0.13 | $1.30 | $2.14 | $2.51 | Revenue / shareRev/sh |
| $-3.59 | $-4.12 | $-2.94 | $-0.93 | $0.07 | $0.02 | EPS (diluted)EPS |
| $-3.18 | $-2.83 | $-1.93 | $-0.66 | $0.56 | $0.58 | Owner earnings / shareOE/sh |
| $-3.18 | $-2.84 | $-1.93 | $-0.67 | $0.53 | $0.53 | Free cash flow / shareFCF/sh |
| $0.02 | $0.02 | $0.00 | $0.02 | $0.04 | $0.05 | Cap. spending / shareCapex/sh |
| $1.67 | $-0.66 | $0.97 | $2.41 | $2.79 | $3.13 | Book value / shareBVPS |
The diluted share count moved ×1.83 into 2023 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.76 into 2024 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.4 into 2025 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 4-yr | 5-yr | |
|---|---|---|
| Revenue / share | +43.9%/yr | +43.9%/yr (4-yr) |
| Capital spending / share | +18.0%/yr | +18.0%/yr (4-yr) |
| Book value / share | +13.6%/yr | +13.6%/yr (4-yr) |
The record, charted
FY2021–2025Each measure over its full record; the current point and the worst year marked.
ROIC
1%low FY2022
Gross margin
86%low FY2023
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
$22Mowner earningsvs.$3Mnet incomelow FY2023
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business earned $22M of owner earnings, the operating cash left after the $238K it takes just to hold its position. It put $1M more into growth; free cash flow, after that spending, was $21M.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | $3M | ($26M) | ($48M) | ($37M) | ($26M) |
| Depreciation & amortizationnon-cash charge added back | +$238K | +$134K | +$128K | +$132K | +$146K |
| Working capital & othertiming of cash in and out, other non-cash items | +$20M | +$8M | +$16M | +$11M | +$3M |
| Cash from operations | $23M | ($19M) | ($31M) | ($25M) | ($23M) |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$238K | −$134K | −$58K | −$132K | −$143K |
| Owner earnings | $22M | ($19M) | ($31M) | ($25M) | ($23M) |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | −$1M | −$425K | — | −$77K | — |
| Free cash flow | $21M | ($19M) | ($31M) | ($25M) | ($23M) |
| Owner-earnings marginowner earnings ÷ revenue | 26% | -51% | -1516% | -922% | -640% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $238K, roughly its depreciation, the rate its assets wear out). The other $1M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Does not cover its interestOperating income $660K ÷ interest expense $22M
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net cashCash $43M − debt $5M
What this means
Cash and short-term investments exceed every dollar of debt by $38M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 50 + DIO 317 − DPO 82 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Below average through the cycle4-yr median, range -1239%–1%; 1% latest = NOPAT $508K ÷ invested capital $73MIndustry peers: median -32%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 4 years (it ran 1% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Positive this year, negative across the cyclelatest $22M = operating cash $23M − maintenance capex $238K (positive this year), after an earlier loss stretch (5-yr median -640%)Industry peers: median -42%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 26% of revenue this year, a -640% median across 5 years.
- Cash-backedCash from ops $23M ÷ net income $3M
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Reinvests most of itDividends + buybacks $6M ÷ Owner Earnings $22M
What this means
Of $22M Owner Earnings, $6M (27%) went back to shareholders, $0 dividends, $6M buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
- Investing or harvesting? 6.50×ExpandingCapex $2M ÷ depreciation $238K
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $85M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 10.92×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $5M vs $109M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (5-yr record) · 4 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.69/share (latest year $0.08), the averaged base the calculator's gate runs on, and book value is $3.22/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2021–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 1 of 5
What this means
Lost money in 4 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 0 of 3 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin −968% → −16% (2-yr avg ends)
What this means
Through the cycle the operating margin widened — about −968% early to −16% lately, median −690% — pricing power intact or improving.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Worst year 2023 · −1849.0% op. margin
What this means
Operations went underwater in 2023, understand why before trusting the good years.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing A competitive risk, new this year
Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.
“If we are unable to use generative AI, it could make our business less efficient and result in competitive disadvantages.”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$120M
- Cash & short-term investments$41M
- Receivables$14M
- Inventory$10M
- Other current assets$55M
Current liabilities$11M
- Accounts payable$3M
- Other current liabilities$7M
Current ratio11.24×all current assets ÷ what's due · Graham looked for 2×
Quick ratio10.33×stricter: inventory excluded
Cash ratio3.86×strictest: cash alone against what's due
Working capital$110Mthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+26.3%the freshest read on whether the business is still growing
Current ratio, recent quarters2.6× → 11.2×
Deeper floors
Tangible book value$113Mequity stripped of goodwill & intangibles
Net current asset value$108MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$907K$907K of it operating leases
Deferred revenue$2Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2023 | Gerard Michel | $2.5M | $2.2M | ($31M) |
| 2024 | Gerard Michel | $2.2M | $4.9M | ($19M) |
| 2025 | Gerard Michel | $5.8M | $3.1M | $22M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership19.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Income taxes, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Medical Devices & Equipment
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| CERSCerus Corporation | $234M | 58% | -40.9% | -43% | -31% |
| SIBNSI-BONE Inc. | $201M | 88% | -36.2% | -21% | -38% |
| BBNXBeta Bionics Inc. | $100M | 55% | -71.5% | -22% | -76% |
| NPCENeuropace Inc. | $100M | 74% | -36.6% | -32% | -42% |
| CBLLCeriBell Inc. | $89M | 87% | -65.6% | -34% | -56% |
| DCTHDelcath Systems Inc. | $85M | 81% | -690.0% | -127% | -640% |
| ELMDElectromed Inc. | $64M | 77% | 10.8% | 11% | 7% |
| CLPTClearPoint Neuro Inc. | $37M | 63% | -75.4% | -228% | -65% |
| Group median | — | 75% | -53.2% | -33% | -49% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Delcath Systems Inc. has delivered.
$
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth, delivered—
Owner-earnings growth, delivered—
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Free cash flow $19M on 35M shares outstanding, per the 10-Q cover, as of 2026-04-30; net cash $36M. The if-converted diluted count is 36M, 4% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($2M) runs well above depreciation ($297K), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $21M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Delcath Systems Inc. (DCTH), the owner's record," https://ownerscorecard.com/c/DCTH, data as of 2026-07-09.
Manual order: ← DCOM its page in the Manual DD →
Industry order: ← CV the Medical Devices & Equipment chapter DRIO →