DMC Global (BOOM) AI Stock Analysis

• Market Cap: $142.63M
• Dividend Yield: N/A
• Average Volume (3M): 216.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -9.45%
• EPS Growth: -1435.88%
• Country: US
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 74
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.12
• Shares Outstanding: 20,581,268
• 10 Day Avg. Volume: 205,681
• 30 Day Avg. Volume: 216,875
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.07
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: -4.14
• 1Y Price Target: $9.25
• Price Target Upside: 30.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $6.50 ▼(-8.32% Downside)

DMC Global's overall stock score reflects significant financial and valuation challenges, with declining profitability and negative margins being major concerns. Technical indicators suggest bearish momentum, further impacting the score. While recent corporate events and earnings call highlights show some positive strategic initiatives, they are not enough to offset the broader financial and market challenges.

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. (BOOM) is a publicly traded holding company that operates primarily in the energy sector, focusing on providing innovative products and services for the oil and gas industry. The company specializes in advanced technologies and solutions that enhance the efficiency and safety of drilling operations. DMC Global's core business segments include its subsidiaries that develop and manufacture high-performance engineered products, such as downhole tools and completion technologies, aimed at improving the productivity of energy producers.

How the Company Makes Money

DMC 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	619.58M	642.85M	719.19M	654.09M	260.12M	229.16M
Gross Profit	134.97M	150.57M	212.05M	185.45M	59.48M	56.85M
EBITDA	-105.67M	-97.28M	95.90M	81.38M	10.44M	9.85M
Net Income	-167.80M	-158.71M	21.39M	14.18M	-4.63M	-1.41M
Balance Sheet
Total Assets	645.02M	671.34M	884.50M	878.98M	864.41M	279.64M
Cash, Cash Equivalents and Short-Term Investments	12.43M	14.29M	43.66M	25.14M	30.81M	53.92M
Total Debt	100.38M	116.27M	163.25M	182.84M	200.55M	23.07M
Total Liabilities	204.09M	233.29M	286.44M	310.81M	306.69M	82.73M
Stockholders Equity	253.86M	250.97M	410.30M	380.65M	360.52M	196.91M
Cash Flow
Free Cash Flow	31.43M	29.31M	49.95M	26.35M	-21.47M	16.51M
Operating Cash Flow	49.90M	46.60M	65.93M	44.94M	-12.81M	30.36M
Investing Cash Flow	-11.49M	-3.57M	-28.10M	-20.93M	-267.81M	-39.56M
Financing Cash Flow	-39.16M	-59.79M	-33.18M	-28.51M	282.58M	17.32M

DMC Global Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.09
• 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 Neutral. The current price of 7.09 is above the 20-day moving average (MA) of 6.46, below the 50-day MA of 7.47, and below the 200-day MA of 7.56, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BOOM.

DMC Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	79 Outperform	$107.73M	8.89	12.76%	―	19.15%	-71.62%
NGS	74 Outperform	$339.90M	19.03	7.00%	0.37%	14.77%	34.74%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
GEOS	62 Neutral	$241.67M	―	-9.95%	―	-10.77%	-229.81%
FET	60 Neutral	$316.87M	―	-28.21%	―	3.86%	-294.41%
OIS	53 Neutral	$348.41M	49.07	0.95%	―	-12.15%	―
BOOM	48 Neutral	$142.63M	―	-50.85%	―	-9.45%	-1435.88%

DMC Global Corporate Events

DMC Global Expands Board with New Appointment

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.

DMC Global Appoints James O’Leary as Permanent CEO

DMC Global announced on June 23, 2025, that James O’Leary has been appointed as the permanent President and CEO, effective July 1, 2025, after serving in an interim capacity since November 29, 2024. O’Leary, who will continue as Executive Chairman, aims to deleverage the company’s balance sheet and optimize its capital structure, with a focus on growing free cash flow and expanding margins despite a challenging economic environment. His extensive experience in executive leadership and capital markets is expected to benefit DMC’s strategic objectives, including a potential acquisition of the remaining 40% stake in Arcadia Products, LLC.

DMC Global Amends Credit Agreement for Acquisition Flexibility

On June 10, 2025, DMC Global Inc. amended its existing credit agreement with a syndicate of banks to enhance financial flexibility in anticipation of possibly acquiring the remaining 40% interest in Arcadia Products, LLC. The amendment includes changes to financial covenants and interest rates, allowing for a temporary increase in the company’s maximum leverage ratio to accommodate this potential acquisition. This strategic move is intended to support DMC’s financial operations amid economic volatility and improve its ability to complete the acquisition, reflecting the company’s proactive approach to managing financial resources and market challenges.

DMC Global Extends Stockholder Rights Agreement

On May 30, 2025, DMC Global Inc. announced an amendment to its Stockholder Protection Rights Agreement, initially established on June 5, 2024, with Computershare Trust Company, N.A. The amendment extends the expiration of the rights by one year to June 4, 2026, while maintaining all other terms of the original agreement. This extension may impact the company’s shareholder dynamics and governance strategies.

DMC Global Stockholders Approve 2025 Omnibus Incentive Plan

DMC Global Inc. held its 2025 Annual Meeting of Stockholders on May 14, 2025, where several key decisions were made. Stockholders approved the 2025 Omnibus Incentive Plan, elected directors to serve until the 2026 Annual Meeting, ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025, and approved executive compensation. These decisions are expected to influence the company’s governance and operational strategies moving forward.