One-glance verdict
Undervalued
$18.26 our estimate vs market $6.10
Wall Street consensus: $10.00 (-45.2% lower than our fair-value estimate)
67% below our estimate, below the bear case
Fundamentals snapshot
DMC Global Inc.
BOOM · NMS · Industrials · Conglomerates
Current price
$6.10
52-week range
$4.69 - $9.20
Market cap
$125.30M
Balance sheet
Distressed
0.53x Concerning
Net debt $75.65M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -4.3% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 4.6% to 3.5% over 3 years.
- Risk Insider ownership is only 7.3% (peer median: 8.2%).
What this company does
DMC Global Inc.
DMC Global operates three different businesses that make specialized products for heavy industry. They sell high-end aluminum window and door systems for big construction projects like airports, precision tools that help energy companies extract oil and gas, and custom-fused metal plates for building corrosion-resistant equipment. Because its revenue (the total money brought in from sales) comes from these distinct sectors, the company's success is linked to spending in the global construction, energy, and industrial markets.
How the company got here
Founded in 1965 as Dynamic Materials Corporation, the company originally focused on explosion-welded metal plates. For decades, it grew as a specialized industrial business. A key turning point came in late 2021 when it acquired a majority ownership of Arcadia, a large maker of architectural building products, which dramatically expanded its business into the construction market. This move, along with its existing energy business, turned it into a conglomerate (a company that owns several distinct businesses) and led to its current name, DMC Global.
What it actually does
DMC Global is a holding company that owns three separate manufacturing businesses. Think of it not as one single company, but as a parent organization for a family of very different businesses. One business makes high-end window and door systems for large buildings, another provides specialized equipment for the oil and gas industry, and the third creates unique metal plates for heavy industrial gear. Each business operates in a different market and sells to very different customers, from construction firms to energy companies.
Arcadia Products
This business designs and makes aluminum and steel framing systems, windows, and doors for buildings. Its customers are in the construction industry, and its products are used for everything from office towers and hotels to high-end custom homes. Arcadia is a major part of DMC's overall business and was acquired to give the company a strong foothold in the architectural building products market. This segment makes up a significant portion of the company's total sales.
DynaEnergetics
This segment serves the oil and gas industry by creating and selling perforating systems. These are highly engineered tools and explosives used to create holes in the casing of oil and gas wells, which is a critical step in getting the resources out of the ground. Its customers are energy companies and the service companies they hire for well completions (the process of preparing a well to begin production). This business is sensitive to the ups and downs of the global energy market.
NobelClad
This is the company's original business, which produces specialized metal plates by bonding different types of metal together using explosives. This explosion-welding process creates clad plates that are highly resistant to corrosion and are used to build heavy-duty industrial equipment. Customers use these plates to make things like large pressure vessels for chemical plants, heat exchangers for refineries, and equipment for shipbuilding and power generation. While the smallest of the three segments by sales, it serves a unique, high-tech industrial niche.
What management is betting on now
Management is currently focused on improving the performance of its existing businesses, particularly Arcadia. The company is also working to reduce its debt to strengthen its balance sheet (a snapshot of a company's financial health). After exploring the possibility of selling its DynaEnergetics and NobelClad businesses, the company's board decided against it for now, believing it's better to focus on stability and internal improvements. Their stated goal is to run their businesses with financial discipline and operational excellence to generate more free cash flow (the cash left over after paying for operating expenses and capital expenditures, which are investments in physical assets like machinery).
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$12.92M
FY2024 Q4
$6.13M
FY2025 Q1
$709.00K
FY2025 Q2
$12.32M
FY2025 Q3
$14.36M
FY2025 Q4
$9.63M
FY2026 Q1
$-4.49M
FY2026 Q2
$-9.23M
Revenue
$156.95M
Net income
$507.00K
Diluted EPS
0.10
Operating cash flow
$-7.96M
Free cash flow
$-9.23M
Fetching…
Sources
Revenue
$135.59M
Net income
$-6.07M
Diluted EPS
-0.34
Operating cash flow
$-2.38M
Free cash flow
$-4.49M
Fetching…
Sources
Revenue
$143.53M
Net income
$-11.16M
Diluted EPS
-0.60
Operating cash flow
$15.19M
Free cash flow
$9.63M
Fetching…
Sources
Revenue
$151.53M
Net income
$-3.08M
Diluted EPS
-0.10
Operating cash flow
$18.61M
Free cash flow
$14.36M
Fetching…
Sources
Revenue
$155.49M
Net income
$116.00K
Diluted EPS
-0.24
Operating cash flow
$15.25M
Free cash flow
$12.32M
Fetching…
Sources
Revenue
$159.29M
Net income
$677.00K
Diluted EPS
0.04
Operating cash flow
$4.49M
Free cash flow
$709.00K
Fetching…
Sources
Revenue
$152.37M
Net income
$296.00K
Diluted EPS
-0.18
Operating cash flow
$11.81M
Free cash flow
$6.13M
Fetching…
Sources
Revenue
$152.43M
Net income
$-101.32M
Diluted EPS
-8.27
Operating cash flow
$19.00M
Free cash flow
$12.92M
Fetching…
Sources
Is it cheap or expensive?
Fair value $18.26 vs current price $6.10
Wall Street consensus is the average analyst price target: $10.00 (-45.2% lower than our fair-value estimate).
Our most-likely fair value is $18.26 a share — about 199.4% above today's price of $6.10, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $75.7M. Interest coverage 0.5x.
Net debt
$75.65M
Interest coverage
0.53x
DMC Global Inc.'s profit covers its interest bill about 0.5 times over. and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
BOOM
BASELINE
DMC Global Inc.
Total debt $104.20M Interest coverage 0.53x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage 6.45x +1,108% vs BOOM Carries about 12.1x more debt cushion than BOOM.
Total debt $214.80M Interest coverage -0.91x -100% vs BOOM This peer has almost no interest-payment cushion compared with BOOM.
Total debt $15.15M Interest coverage 120.49x +22,459% vs BOOM Carries about 225.6x more debt cushion than BOOM.
Total debt $19.46M Interest coverage 0.79x +48% vs BOOM Carries about 1.5x more debt cushion than BOOM.
Total debt $70.32M Interest coverage 4.48x +738% vs BOOM Carries about 8.4x more debt cushion than BOOM.
What you should know
The case for and against BOOM
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 8/10 years.
Risks
-
Return on equity was -4.3% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 4.6% to 3.5% over 3 years.
-
Insider ownership is only 7.3% (peer median: 8.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
14.19x
P/B
0.53x
P/S
0.21x
EV/EBITDA
14.26x
PEG ratio
0.49x
Profitability
How much profit each dollar creates
Gross margin
19.9%
Operating margin
3.5%
Net margin
-3.4%
ROE
-4.3%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.25x
Current ratio
2.56x
Quick ratio
1.07x
Total debt
$104.20M
Total cash
$28.55M
Growth
How the business has been compounding
Revenue TTM
$587.61M
Revenue 5Y CAGR
23.7%
EPS TTM
-0.94
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$23.46M
Free CF TTM
$37.03M
FCF margin
6.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2020-03-30