DMC Global (BOOM) AI Stock Analysis

• Market Cap: $138.52M
• Dividend Yield: N/A
• Average Volume (3M): 225.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -9.47%
• EPS Growth: -839.21%
• Country: US
• Employees: 1,600
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.11
• Shares Outstanding: 20,490,723
• 10 Day Avg. Volume: 261,830
• 30 Day Avg. Volume: 225,689
• PEG Ratio: -2.09
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.50
• Price Target Upside: 22.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

DMC Global's stock score reflects significant financial and operational challenges, with declining revenues and profitability weighing heavily. Technical indicators suggest a bearish trend, and valuation metrics are unfavorable due to negative earnings. While recent earnings call insights show some operational improvements, future performance is doubtful amid macroeconomic and industry-specific headwinds.

Positive Factors

Acquisition Proposal

Steel Connect is reiterating the proposal to acquire the remaining shares of DMC it does not already own for $16.50 in cash.

Negative Factors

Leadership Changes

The retirement of CEO Michael Kuta and recent Board changes, coupled with lackluster end-market demand, make it difficult to analyze performance going forward.

Market Competition

Pricing for DynaEnergetics' perforating systems continues to face headwinds from tempered North American completion activity coupled with competition from machine shops eroding market share and pricing power.

DMC Global Business Overview & Revenue Model

Company Description

DMC Global Inc. provides a suite of technical products for the energy, industrial, and infrastructure markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building materials, including storefronts and entrances, windows, curtain walls, and interior partitions; architectural components, architectural framing systems, and sun control products; sliding and glazing systems; and engineered steel, aluminum, and wood door and window systems. It sells its products through a national in-house sales force for buildings, such as office towers, hotels, education and athletic facilities, health care facilities, government buildings, retail centers, luxury homes, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.

How the Company Makes Money

DMC Global Inc. generates revenue through its two main business units. DynaEnergetics earns income by designing, manufacturing, and selling perforating products and systems, which are crucial for efficient oil and gas extraction. These products are sold directly to oilfield service companies and operators worldwide. NobelClad, on the other hand, generates revenue by producing and selling explosion-welded clad metal plates, which are used in a wide range of industries for equipment that requires high strength and corrosion resistance. NobelClad's clients span various sectors, including chemical processing, shipbuilding, and power generation. DMC Global's earnings are also influenced by its strategic partnerships and global distribution network, which enhance its market reach and operational efficiency.

DMC Global Financial Statement Overview

Summary

DMC Global is facing financial difficulties with declining revenues and profitability. While the balance sheet shows moderate leverage, the shrinking equity base and negative income metrics raise concerns. Cash flow remains a relative strength, suggesting some ability to generate cash despite operational challenges.

Income Statement

DMC Global's income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) shows negative EBIT and net income, indicating operational struggles. Revenue has declined from the previous year, reflecting a drop in business activity. Margins are negative, underscoring profitability issues.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio remains relatively stable, suggesting manageable leverage levels. However, the company has experienced a reduction in stockholders' equity, and the equity ratio has decreased over time, pointing to potential financial stability concerns.

Cash Flow

Cash flow analysis shows a decrease in free cash flow compared to the previous year, yet the company maintains positive operating cash flow. The free cash flow to net income ratio is positive, indicating some degree of cash generation despite net losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
635.27M	642.85M	719.19M	654.09M	260.12M	229.16M
	Gross Profit
144.11M	150.57M	212.05M	185.45M	59.48M	56.85M
	EBIT
-129.13M	-131.26M	61.18M	29.99M	-542.00K	2.16M
	EBITDA
-103.28M	-97.28M	95.90M	81.38M	10.44M	9.85M
	Net Income Common Stockholders
-158.21M	-161.21M	26.26M	14.18M	-1.01M	-1.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.71M	14.29M	43.66M	25.14M	30.81M	53.92M
	Total Assets
670.64M	671.34M	884.50M	878.98M	864.41M	279.64M
	Total Debt
72.42M	70.82M	163.25M	132.80M	147.43M	11.26M
	Net Debt
57.72M	56.53M	132.21M	107.65M	116.61M	-16.92M
	Total Liabilities
229.64M	233.29M	286.44M	310.81M	306.69M	82.73M
	Stockholders Equity
253.92M	250.97M	410.30M	380.65M	360.52M	196.91M
Cash Flow		Free Cash Flow
19.55M	29.31M	49.95M	26.35M	-21.47M	16.51M
	Operating Cash Flow
37.64M	46.60M	65.93M	44.94M	-12.81M	30.36M
	Investing Cash Flow
-16.55M	-3.57M	-28.10M	-20.93M	-267.81M	-39.56M
	Financing Cash Flow
-25.63M	-59.79M	-33.18M	-28.51M	282.58M	17.32M

DMC Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOOM, the sentiment is Positive. The current price of 6.93 is above the 20-day moving average (MA) of 6.63, below the 50-day MA of 7.50, and below the 200-day MA of 9.33, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOOM.

DMC Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	80 Outperform	$75.49M	9.23	8.71%	―	18.03%	-39.52%
NGS	76 Outperform	$237.26M	13.77	7.02%	―	29.36%	261.48%
Sector *	56 Neutral	$7.06B	3.68	-4.87%	5.83%	0.28%	-51.94%
OIS	54 Neutral	$279.03M	52.02	0.75%	―	-9.04%	―
FET	51 Neutral	$168.47M	―	-32.34%	―	7.31%	-326.94%
GEOS	50 Neutral	$84.84M	―	-11.88%	―	-14.52%	-204.65%
BOOM	48 Neutral	$138.52M	―	-48.46%	―	-9.47%	-839.21%

DMC Global Corporate Events

DMC Global Board Member Resigns, Replacement Nominated

On April 25, 2025, Simon M. Bates announced his resignation from DMC Global Inc.’s Board of Directors, effective April 30, 2025, due to his new position at a competing company. His resignation was not due to any disagreements with DMC. Consequently, the board size was reduced from six to five members, and the standing committees were reconstituted. Clifton Peter Rose has been nominated as a substitute for Mr. Bates at the upcoming Annual Meeting on May 14, 2025, ensuring continuity and preserving institutional knowledge.

Spark’s Take on BOOM Stock

According to Spark, TipRanks’ AI Analyst, BOOM is a Neutral.

DMC Global’s overall stock score reflects a balance of challenges and opportunities. Weaknesses in financial performance, particularly profitability and revenue growth, are significant risks. Technical indicators suggest a bearish trend, and valuation lacks support due to negative earnings. However, positive cash flow generation, strategic initiatives, and leadership changes provide potential upside if executed well.

To see Spark’s full report on BOOM stock, click here.

DMC Global Updates Executive Severance Plan Agreement

On March 13, 2025, Eric Walter, CFO of DMC Global Inc., entered into a new participation agreement under the company’s Executive Severance Plan, which supersedes his previous severance terms. The plan outlines specific severance benefits for participants whose employment is terminated under certain conditions, including provisions for cash severance, COBRA benefits, and accelerated equity award vesting. These changes aim to provide clarity and security for executives in the event of employment termination, potentially affecting the company’s executive retention and compensation strategy.

DMC Global Rejects Steel Connect’s Acquisition Proposal

On February 12, 2025, DMC Global Inc. rejected a non-binding proposal from Steel Connect to acquire all outstanding shares for $10.18 per share, considering it undervalues the company’s potential and overlooks significant progress made in its Arcadia and DynaEnergetics divisions. The company’s board highlighted that the offer does not account for the recent stabilization and growth initiatives, such as Arcadia’s strategic positioning in Southern California’s reconstruction efforts and DynaEnergetics’ technological advancements in North America’s energy sector. Additionally, DMC has initiated a CEO search to guide its future value creation path.