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DMC Global Inc (BOOM)
NASDAQ:BOOM
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DMC Global (BOOM) AI Stock Analysis

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DMC Global

(NASDAQ:BOOM)

Rating:52Neutral
Price Target:
$8.00
▲(0.25%Upside)
DMC Global's overall stock score reflects significant financial challenges and valuation concerns, balanced by strategic corporate actions and potential operational improvements. Financial performance remains the most critical factor, while technical indicators and positive corporate events offer some support.
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 (BOOM) vs. SPDR S&P 500 ETF (SPY)

DMC Global Business Overview & Revenue Model

Company DescriptionDMC Global Inc. (BOOM) is a diversified holdings company operating in the industrial sector, primarily through its two main subsidiaries: DynaEnergetics and NobelClad. DynaEnergetics designs and manufactures advanced perforating systems used in the oil and gas industry, while NobelClad specializes in the production of explosion-welded clad metal plates that are utilized across various industrial sectors. The company is known for its innovative engineering solutions and commitment to quality and safety standards in its product offerings.
How the Company Makes MoneyDMC Global generates revenue primarily through the sale of its engineered products and systems. DynaEnergetics contributes to the company's earnings by supplying perforating systems to oil and gas companies, which rely on these products for efficient and safe extraction processes. NobelClad adds to the revenue stream by providing explosion-welded clad metal plates, which are used in industries such as petrochemical, aluminum production, and shipbuilding, among others. The company’s revenue model is largely driven by its ability to maintain strong customer relationships, innovate in product design, and expand its market presence globally. Significant partnerships with key players in the oil and gas sector and industrial markets further bolster DMC Global's financial performance.

DMC Global Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 23.72%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with both positive operational improvements and challenges. While there were significant sequential gains in sales and EBITDA, there were notable year-over-year declines in certain segments and concerns about future performance due to external macroeconomic factors.
Q1-2025 Updates
Positive Updates
Sequential Increase in Consolidated Sales and EBITDA
Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 39% higher than the fourth quarter.
Arcadia's Sales and EBITDA Growth
Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement. Adjusted EBITDA attributable to DMC was $5.6 million, with a margin of 14.2%, up from 6.2% in the fourth quarter.
Operational Improvements at DynaEnergetics
DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially. Adjusted EBITDA was $7.4 million, reflecting an improvement of 325 basis points due to automation and product reengineering.
NobelClad Year-over-Year Sales Increase
NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, indicating resilience despite external challenges.
Negative Updates
DynaEnergetics Year-over-Year Decline
DynaEnergetics' sales were down 16% compared to the first quarter of last year due to a downturn in the U.S. onshore energy market and a 20% decrease in active frac crews.
Decreased Order Backlog at NobelClad
NobelClad's order backlog at the end of the first quarter was $41 million, down from $49 million at the end of the fourth quarter due to tariff-related uncertainties.
Increased SG&A Expenses
First quarter SG&A expense was $28.3 million, up from $25.1 million in the fourth quarter, driven by higher professional services and bad debt expenses.
Anticipated Decline in Arcadia's Second Quarter Performance
Arcadia's results are expected to be below the year-ago second quarter due to the completion of a large project and declining demand in the luxury residential market.
Company Guidance
During the DMC Global First Quarter 2025 Earnings Call, the company provided guidance for the second quarter, expecting consolidated sales in the range of $149 million to $157 million and adjusted EBITDA attributable to DMC between $10 million and $13 million. This guidance reflects anticipated challenges such as lower project billings at Arcadia due to the completion of a large mixed-use project in California, and declining demand in the luxury residential market. DynaEnergetics expects stable well completion activity in its core U.S. onshore oil and gas markets, while NobelClad sales are anticipated to slow due to evolving U.S. and reciprocal tariff policies. The company highlighted macroeconomic concerns and tariff uncertainties as significant factors influencing their projections.

DMC Global Financial Statement Overview

Summary
DMC Global's financial performance is under pressure, with negative margins and declining revenues. The balance sheet shows moderate leverage but a shrinking equity base, raising concerns about financial stability. Positive operating cash flow offers a slight counterbalance to these challenges.
Income Statement
30
Negative
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue635.27M642.85M719.19M654.09M260.12M229.16M
Gross Profit144.11M150.57M212.05M185.45M59.48M56.85M
EBITDA-103.28M-97.28M95.90M81.38M10.44M9.85M
Net Income-158.21M-161.21M26.26M14.18M-1.01M-1.41M
Balance Sheet
Total Assets670.64M671.34M884.50M878.98M864.41M279.64M
Cash, Cash Equivalents and Short-Term Investments14.71M14.29M43.66M25.14M30.81M53.92M
Total Debt72.42M70.82M163.25M132.80M147.43M11.26M
Total Liabilities229.64M233.29M286.44M310.81M306.69M82.73M
Stockholders Equity253.92M250.97M410.30M380.65M360.52M196.91M
Cash Flow
Free Cash Flow19.55M29.31M49.95M26.35M-21.47M16.51M
Operating Cash Flow37.64M46.60M65.93M44.94M-12.81M30.36M
Investing Cash Flow-16.55M-3.57M-28.10M-20.93M-267.81M-39.56M
Financing Cash Flow-25.63M-59.79M-33.18M-28.51M282.58M17.32M

DMC Global Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.98
Price Trends
50DMA
7.51
Positive
100DMA
7.57
Positive
200DMA
8.26
Negative
Market Momentum
MACD
0.11
Positive
RSI
46.95
Neutral
STOCH
29.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOOM, the sentiment is Negative. The current price of 7.98 is below the 20-day moving average (MA) of 8.07, above the 50-day MA of 7.51, and below the 200-day MA of 8.26, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 46.95 is Neutral, neither overbought nor oversold. The STOCH value of 29.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BOOM.

DMC Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NGNGS
78
Outperform
$300.22M18.166.77%22.64%78.46%
72
Outperform
$75.74M9.488.71%18.03%-39.52%
OIOIS
59
Neutral
$314.91M61.130.75%-9.04%
FEFET
58
Neutral
$242.44M-32.34%7.31%-326.94%
53
Neutral
$137.80M-11.88%-14.52%-204.65%
52
Neutral
C$2.94B-1.05-3.46%5.87%3.01%-47.13%
52
Neutral
$157.37M-48.46%-9.47%-839.21%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BOOM
DMC Global
7.76
-6.23
-44.53%
FET
Forum Energy Tech
19.60
2.12
12.13%
NGS
Natural Gas Services Group
24.39
3.89
18.98%
OIS
Oil States International
5.43
0.96
21.48%
GEOS
Geospace Technologies
10.73
1.69
18.69%
NCSM
Ncs Multistage Holdings
31.50
14.31
83.25%

DMC Global Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
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.

Executive/Board ChangesBusiness Operations and Strategy
DMC Global Appoints James O’Leary as Permanent CEO
Positive
Jun 23, 2025

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.

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.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
DMC Global Amends Credit Agreement for Acquisition Flexibility
Positive
Jun 11, 2025

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.

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.

Business Operations and Strategy
DMC Global Extends Stockholder Rights Agreement
Neutral
Jun 3, 2025

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.

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
DMC Global Stockholders Approve 2025 Omnibus Incentive Plan
Neutral
May 19, 2025

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.

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.

Executive/Board ChangesShareholder Meetings
DMC Global Board Member Resigns, Replacement Nominated
Neutral
Apr 30, 2025

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.

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: Jul 17, 2025