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Fundamental analysis: DMC Global Inc. (BOOM)

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Very poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been growing at a very good pace. It's been great when measured against peer companies.
  • DMC Global Inc. business varies frequently, ups and downs are normal. It's risky. It looks mediocre against rivals.

Margins score: 5.5

  • BOOM profit margins -on goods and services sold- are usually hardly sufficient. They stand better than most rival companies.
  • Business profit on sales tends to be good. It's more than average in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain rather normal in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be hardly sufficient when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 4.6

  • DMC Global Inc. profit -on goods and services sold- has been growing at a very good pace. It's been a slight improvement compared to competitors.
  • In recent years, earnings -on operations- have been growing at an extremely fast step, which has been bottom tier against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares great when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 2.0

  • BOOM had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.0

  • DMC Global Inc. usually gets very good returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.0

  • BOOM usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved a slight improvement compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks encouraging in relation to competitors.

Balance Sheet score: 3.8

  • DMC Global Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be rather normal in relation to similar firms.
  • Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains somewhat better than rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on somewhat less than three months credit. It still ranks similar to peers.
  • Normally has approximately six months of sales worth in inventory. It comes up as a disappointment compared to competitors.
  • On average, it takes a lot of months from the purchase to charging customers. It happens to be bottom tier against peers.
  • On average pays suppliers two months after the purchase. It ranks more than average in relation to industry peers.
  • The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's a disappointment compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands well ranked against rival firms.
  • Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks a slight improvement compared to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still worse than most peer companies.

Valuation score: 4.6

  • DMC Global Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands top-notch against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up in a very weak position compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
  • In the past twelve months, the operating business lost some money. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 4.8


BOOM logos

Company at a glance: DMC Global Inc. (BOOM)

Sector, industry: Energy, Oil & Gas Equipment & Services

Market Cap: 0.36 billions

Revenues TTM: 0.44 billions

DMC 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.

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Very poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Very poor).