Delcath Systems, Inc. (NASDAQ:DCTH) is a medical device company focused on oncology, developing the Delcath Hepatic Delivery System for high-dose chemotherapy administration to the liver. The company competes in a challenging landscape alongside Cyclacel Pharmaceuticals, Interpace Biosciences, and ImmunoCellular Therapeutics.
In evaluating Delcath's financial performance, the Return on Invested Capital (ROIC) of 3.58% is crucial, yet it falls short of its Weighted Average Cost of Capital (WACC) of 7.61%, signaling that Delcath is not generating sufficient returns to cover its cost of capital. This poses a concern for investors.
Comparatively, Cyclacel Pharmaceuticals exhibits a negative ROIC of -336,215.88% against a WACC of 4.70%, leading to a highly unfavorable ROIC to WACC ratio. This indicates Cyclacel's significant underperformance in capital efficiency. Conversely, Interpace Biosciences shows a positive ROIC of 84.16% with a WACC of 9.00%, resulting in a favorable ROIC to WACC ratio of 9.36.
ImmunoCellular Therapeutics stands out with an impressive ROIC of 1,140.12% and a WACC of 15.35%, achieving the highest ROIC to WACC ratio of 74.29 among its peers. This efficiency in utilizing capital to generate returns marks ImmunoCellular as a strong performer in the group.
Aeterna Zentaris and Rennova Health both display negative ROICs of -21.44% and -12.76%, respectively, with WACCs of 14.71% and 8.68%. Their ROIC to WACC ratios of -1.46 and -1.47, respectively, highlight inefficiencies in capital utilization, mirroring the challenges faced by Delcath.
