NasdaqGS:BOOM

Stock Analysis Report

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Executive Summary

DMC Global Inc. engages in technical product and process businesses serving the energy, industrial, and infrastructure markets worldwide.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has DMC Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BOOM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.6%

BOOM

16.6%

US Energy Services

3.8%

US Market


1 Year Return

-50.7%

BOOM

-43.6%

US Energy Services

9.7%

US Market

Return vs Industry: BOOM underperformed the US Energy Services industry which returned -47.7% over the past year.

Return vs Market: BOOM underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

BOOMIndustryMarket
7 Day20.6%16.6%3.8%
30 Day54.0%34.7%11.4%
90 Day11.2%-5.9%6.8%
1 Year-50.2%-50.7%-41.8%-43.6%12.1%9.7%
3 Year146.7%142.5%-62.8%-68.0%36.2%27.2%
5 Year235.3%222.7%-68.6%-74.4%63.7%45.4%

Price Volatility Vs. Market

How volatile is DMC Global's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DMC Global undervalued compared to its fair value and its price relative to the market?

22.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BOOM ($34.43) is trading above our estimate of fair value ($8.64)

Significantly Below Fair Value: BOOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BOOM is poor value based on its PE Ratio (22.2x) compared to the Energy Services industry average (13.5x).

PE vs Market: BOOM is poor value based on its PE Ratio (22.2x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: BOOM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BOOM is overvalued based on its PB Ratio (2.9x) compared to the US Energy Services industry average (0.5x).


Next Steps

Future Growth

How is DMC Global forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

40.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOOM's forecast earnings growth (40.2% per year) is above the savings rate (2.2%).

Earnings vs Market: BOOM's earnings (40.2% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BOOM's revenue (1.7% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: BOOM's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BOOM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DMC Global performed over the past 5 years?

60.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOOM has a large one-off loss of $21.3M impacting its March 31 2020 financial results.

Growing Profit Margin: BOOM's current net profit margins (6.1%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: BOOM has become profitable over the past 5 years, growing earnings by 60.7% per year.

Accelerating Growth: BOOM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BOOM had negative earnings growth (-44.8%) over the past year, making it difficult to compare to the Energy Services industry average (-58.7%).


Return on Equity

High ROE: BOOM's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is DMC Global's financial position?


Financial Position Analysis

Short Term Liabilities: BOOM's short term assets ($138.4M) exceed its short term liabilities ($63.1M).

Long Term Liabilities: BOOM's short term assets ($138.4M) exceed its long term liabilities ($32.2M).


Debt to Equity History and Analysis

Debt Level: BOOM's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: BOOM's debt to equity ratio has reduced from 22.7% to 7.8% over the past 5 years.

Debt Coverage: BOOM's debt is well covered by operating cash flow (462%).

Interest Coverage: BOOM's interest payments on its debt are well covered by EBIT (46.2x coverage).


Balance Sheet


Next Steps

Dividend

What is DMC Global's current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BOOM's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BOOM's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: BOOM's dividend payments have been volatile in the past 10 years.

Growing Dividend: BOOM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.5%), BOOM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BOOM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Kevin Longe (60yo)

7.25yrs

Tenure

US$2,683,684

Compensation

Mr. Kevin T. Longe has been the Chief Executive Officer and President of DMC Global Inc. (formerly Dynamic Materials Corporation) since March 1, 2013. Mr. Longe served as the Chief Operating Officer and Ex ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.68M) is about average for companies of similar size in the US market ($USD2.15M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Longe
President7.25yrsUS$2.68m0.29% $1.5m
Michael Kuta
Chief Financial Officer6.25yrsUS$1.14m0.13% $678.4k
Michelle Shepston
VP, Chief Legal Officer & Secretary3.83yrsUS$744.65k0.14% $733.2k
Ian Grieves
President & MD of DynaEnergetics7.42yrsUS$1.13m0.28% $1.4m
Geoff High
Vice President of Investor Relations & Corporate Communicationsno datano datano data

6.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: BOOM's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Longe
President7.25yrsUS$2.68m0.29% $1.5m
Yvon Cariou
Independent Director14.08yrsUS$135.57k0.85% $4.3m
Robert Cohen
Independent Director9.33yrsUS$137.57k0.16% $802.3k
Richard Graff
Independent Director13yrsUS$142.57k0.11% $578.2k
David Aldous
Independent Chairman of the Board2.08yrsUS$157.57k0.23% $1.2m
Clifton Rose
Independent Director3.58yrsUS$135.57k0.10% $529.9k
Andréa Bertone
Independent Director1.33yrsUS$187.58k0.0085% $43.0k

7.9yrs

Average Tenure

68yo

Average Age

Experienced Board: BOOM's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BOOM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DMC Global Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DMC Global Inc.
  • Ticker: BOOM
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$507.885m
  • Shares outstanding: 14.75m
  • Website: https://www.dmcglobal.com

Number of Employees


Location

  • DMC Global Inc.
  • 11800 Ridge Parkway
  • Suite 300
  • Broomfield
  • Colorado
  • 80021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOOMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1976
DM5DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1976

Biography

DMC Global Inc. engages in technical product and process businesses serving the energy, industrial, and infrastructure markets worldwide. The company operates in two segments, NobelClad and DynaEnergetics. 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 DynaEnergetics segment designs, manufactures, markets, and sells perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:05
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.