tiprankstipranks
Trending News
More News >
DMC Global Inc (BOOM)
NASDAQ:BOOM
Advertisement

DMC Global (BOOM) AI Stock Analysis

Compare
323 Followers

Top Page

BOOM

DMC Global

(NASDAQ:BOOM)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$7.50
▼(-9.96% Downside)
DMC Global's overall stock score reflects significant financial and valuation challenges, with profitability and revenue growth under pressure. Technical analysis provides some positive signals, but the valuation remains unattractive due to a negative P/E ratio. The earnings call offered mixed sentiment, highlighting both positive financial management actions and ongoing market challenges.
Positive Factors
Debt Reduction
Reducing debt by 17% strengthens DMC Global's balance sheet, enhancing financial stability and flexibility for future investments.
NobelClad Year-over-Year Growth
The year-over-year sales growth in NobelClad indicates resilience and potential for sustained performance in the composite metals segment.
Free Cash Flow Growth
Strong free cash flow growth enhances DMC Global's ability to reinvest in business operations and manage financial obligations effectively.
Negative Factors
Revenue Decline
The decline in revenue growth reflects market challenges and could impact DMC Global's ability to sustain long-term profitability.
Negative Profit Margins
Negative profit margins indicate operational inefficiencies, which could hinder DMC Global's ability to achieve sustainable profitability.
Order Backlog Decline
A declining order backlog suggests potential future revenue challenges, impacting DMC Global's ability to maintain growth momentum.

DMC Global (BOOM) vs. SPDR S&P 500 ETF (SPY)

DMC Global Business Overview & Revenue Model

Company DescriptionDMC 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 MoneyDMC Global generates revenue through the sale of its engineered products and technologies to oil and gas operators. The company's revenue model is primarily based on direct sales of its product offerings, including downhole tools and completion equipment, which are essential for drilling and production operations. Key revenue streams include product sales, service contracts, and potentially licensing agreements for its proprietary technologies. Additionally, DMC Global may benefit from strategic partnerships with major energy companies, which could enhance its market reach and lead to larger contracts, thus contributing significantly to its earnings.

DMC Global Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements and ongoing challenges. Highlights included exceeding EBITDA guidance and significant debt reduction, while lowlights focused on sales declines in the Arcadia and DynaEnergetics segments, as well as a decrease in NobelClad's backlog. Despite some positive financial management actions, the overall market environment remains challenging.
Q2-2025 Updates
Positive Updates
Exceeding EBITDA Guidance
DMC Global exceeded its EBITDA guidance range of $10 million to $13 million, achieving $13.5 million for the second quarter.
Debt Reduction
Total debt was reduced by 17% from the previous quarter to $59 million, demonstrating progress in deleveraging the balance sheet.
NobelClad Year-over-Year Growth
NobelClad's sales were up 6% year-over-year, despite a sequential decline.
DynaEnergetics EBITDA Improvement
DynaEnergetics achieved an adjusted EBITDA margin improvement of 210 basis points sequentially and 190 basis points year-over-year.
Negative Updates
Arcadia Segment Sales Decline
Arcadia's second-quarter sales were $62 million, down 5% sequentially and 11% year-over-year due to weakness in the high-end residential market.
DynaEnergetics Sales Decline
Sales at DynaEnergetics were down 12% year-over-year due to pricing pressure and weaker demand in the U.S. unconventional market.
NobelClad Backlog Decline
NobelClad's order backlog decreased from $41 million in the first quarter to $37 million, reflecting a slowdown in bookings due to tariff uncertainties.
Adjusted EBITDA Margin Decline
Consolidated adjusted EBITDA margin was 10.4%, down from 11.4% in the first quarter and 14.3% in the prior year second quarter.
Company Guidance
During the DMC Global second quarter earnings call, the company reported consolidated sales of $155.5 million and adjusted EBITDA attributable to DMC of $13.5 million, exceeding their guidance range of $10 million to $13 million. Arcadia, the building products segment, saw sales of $62 million, down 5% sequentially and 11% year-over-year, impacted by high interest rates and reduced construction activity. DynaEnergetics, the energy products segment, reported sales of $66.9 million, reflecting a 2% sequential increase but a 12% year-over-year decline due to pricing pressures and reduced demand in the U.S. market. NobelClad, the composite metals segment, achieved sales of $26.6 million, a 5% sequential decrease but a 6% year-over-year increase, with an order backlog of $37 million. The company reduced total debt by 17% to $59 million, focusing on deleveraging its balance sheet. For the third quarter, DMC Global anticipates consolidated sales of $142 million to $150 million and adjusted EBITDA of $8 million to $12 million, influenced by macroeconomic uncertainties and tariff policies.

DMC Global Financial Statement Overview

Summary
DMC Global faces significant financial challenges, particularly in terms of profitability and revenue growth. The income statement shows declining revenue and negative margins, while the balance sheet indicates a moderate financial structure with some stability. Cash flow performance is mixed, with strong free cash flow growth but limited cash generation relative to net income.
Income Statement
45
Neutral
DMC Global's income statement reveals a challenging financial position. The company has experienced declining revenue growth, with a negative growth rate of -2.47% in the TTM period. Margins are under pressure, with a negative net profit margin of -24.90% and an EBIT margin of -20.44%, indicating operational inefficiencies. Despite a historically positive gross profit margin, the recent downturn in profitability is concerning.
Balance Sheet
55
Neutral
The balance sheet shows a moderate financial structure. The debt-to-equity ratio of 0.46 suggests a balanced approach to leveraging, but the negative return on equity of -53.75% in the TTM period highlights profitability challenges. The equity ratio of 39.36% indicates a reasonable level of equity financing, providing some stability.
Cash Flow
60
Neutral
Cash flow analysis shows mixed results. While the free cash flow growth rate is strong at 98.36% in the TTM period, the operating cash flow to net income ratio of 0.34 suggests limited cash generation relative to net income. The free cash flow to net income ratio of 0.52 indicates some ability to convert earnings into cash, but overall cash flow management remains a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue619.58M642.85M719.19M654.09M260.12M229.16M
Gross Profit134.97M150.57M212.05M185.45M59.48M56.85M
EBITDA-105.67M-97.28M95.90M81.38M10.44M9.85M
Net Income-167.80M-158.71M21.39M14.18M-4.63M-1.41M
Balance Sheet
Total Assets645.02M671.34M884.50M878.98M864.41M279.64M
Cash, Cash Equivalents and Short-Term Investments12.43M14.29M43.66M25.14M30.81M53.92M
Total Debt100.38M116.27M163.25M182.84M200.55M23.07M
Total Liabilities204.09M233.29M286.44M310.81M306.69M82.73M
Stockholders Equity253.86M250.97M410.30M380.65M360.52M196.91M
Cash Flow
Free Cash Flow31.43M29.31M49.95M26.35M-21.47M16.51M
Operating Cash Flow49.90M46.60M65.93M44.94M-12.81M30.36M
Investing Cash Flow-11.49M-3.57M-28.10M-20.93M-267.81M-39.56M
Financing Cash Flow-39.16M-59.79M-33.18M-28.51M282.58M17.32M

DMC Global Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.33
Price Trends
50DMA
7.27
Positive
100DMA
7.39
Positive
200DMA
7.53
Positive
Market Momentum
MACD
0.35
Negative
RSI
66.48
Neutral
STOCH
73.58
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 8.33 is above the 20-day moving average (MA) of 7.45, above the 50-day MA of 7.27, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 73.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOOM.

DMC Global Risk Analysis

DMC Global disclosed 40 risk factors in its most recent earnings report. DMC Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

DMC Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$360.97M20.216.73%0.35%14.77%34.74%
73
Outperform
$134.87M11.1311.84%19.15%-71.62%
62
Neutral
$244.75M-17.99-4.89%-10.77%-229.81%
60
Neutral
$342.46M-3.23-32.77%3.86%-294.41%
54
Neutral
$168.56M-50.85%-9.45%-1435.88%
53
Neutral
$375.67M55.21-1.65%-12.15%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BOOM
DMC Global
8.33
-4.50
-35.07%
FET
Forum Energy Tech
27.81
12.22
78.38%
NGS
Natural Gas Services Group
28.43
8.94
45.87%
OIS
Oil States International
6.33
1.69
36.42%
GEOS
Geospace Technologies
19.16
8.78
84.59%
NCSM
Ncs Multistage Holdings
51.14
31.49
160.25%

DMC Global Corporate Events

Business Operations and StrategyExecutive/Board Changes
DMC Global Expands Board with New Appointment
Positive
Jun 26, 2025

On June 25, 2025, DMC Global Inc. announced the appointment of John R. ‘Jay’ Doubman to its Board of Directors, expanding the board to six members. Mr. Doubman, who brings over 30 years of global leadership experience in the industrial, building products, and specialty chemicals sectors, will serve on the Risk and Compensation Committees. His appointment aligns with DMC’s growth objectives, leveraging his expertise in corporate strategy and international operations to enhance the company’s diversified industrial portfolio.

The most recent analyst rating on (BOOM) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on DMC Global stock, see the BOOM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 17, 2025