DMC Global Inc. Common Stock (BOOM)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look first for durable earnings and a margin of safety. DMC Global is an industrial conglomerate split among Arcadia, DynaEnergetics, and NobelClad, selling engineered products into construction, energy, and industrial processing. The numbers show a troubled, cyclical business rather than a wide-moat compounder. In fiscal 2023 the company earned $26.3 million of net income on $719.2 million of revenue. Then fiscal 2024 produced a $94.5 million loss, and fiscal 2025 still lost $13.5 million on $609.8 million of revenue. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, had revenue of $157.0 million, net income of $507,000, and diluted EPS of $0.10—a barely positive result after a fiscal Q1 2026 loss of $6.1 million. So the recovery is not yet proven. Financial health is mixed: debt-to-equity is only 0.25 and trailing free cash flow is $10.3 million, a 9.0% FCF yield on the 2026-10-13 market cap of $113.8 million. But Altman Z-Score of 0.88 signals distress, ROE is -4.33%, ROCE is -0.57%, and Piotroski is 5/9. Valuation is the interesting part: at $5.54, FairStock calculations show P/B of 0.48, EV/EBITDA of 6.23, and a FairStock score of 40/100. With a negative P/E of -5.89, earnings do not support the price, so the case rests on asset value and a turnaround. FairStock classifies it as a TURNAROUND: a loss in the latest year after earlier profits. I would want to see sustained positive net income and cash generation before calling this a safe value. The price looks cheap statistically, but the quality and predictability are poor.

In plain English: DMC Global makes engineered products for construction, energy, and industrial customers, including aluminum building systems and specialized metal parts. The business looks weak right now: it lost money in fiscal 2024 and fiscal 2025, though it earned a small profit in the quarter ended 2026-06-30. At $5.54 on 2026-10-13, the stock looks cheap compared with its accounting value and cash flow, but the weak profits and financial risk mean the cheapness may not be real.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer