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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Dmc Global Inc. (XNAS:BOOM) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
BOOM
Name:
DMC GLOBAL INC. (XNAS:BOOM)
Sector:
- 6120.00K
Industry:
Oil & Gas Equipment & Services
CEO:
Mr. Kevin Longe
Total Employees:
1,503
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -129.63% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF DMC GLOBAL INC.(BOOM) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND OIL & GAS EQUIPMENT & SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
21.58
One Month Price Target:
$21.77
Six Month Price Target :
$22.69
Likely Price in One Year's Time:
Ticker:
$23.8
Likely Trading Range Today Under (Normal Volatility)
$21.42
Price Upper limit ($) :
$21.72
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$19.74
This week:
$17.46
This month :
$13.34
Other Primary facts
Market Cap:
375.53M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
19.53M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
19.3%
-26.19%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$30.14
$26.27
$13.02
$16.89
Medium risk (<10%) entry points
Buy Call
Sell Call
$25.01
Buy Put:
Sell Put:
$24.18
$18.14
$18.98
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
BOOM
Sharpe Ratio:
-1.13%
Comparison:
BOOM, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -175.05% lower than the industry
& is -149.75% lower than the market/S&P 500 average
Average Returns/Yield of
BOOM
Daily returns:
-0.04%
Weekly returns:
-0.19%
Monthly returns:
-0.76%
Yearly returns:
19.19%
Comparison of returns:
Average annual returns/yield (last 3 years) is -147.65% below industry average
Classification:
BOOM, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.7
Statistical test of Returns:
BOOM has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.14%
Weekly Volatility:
9.26%
Monthly Volatility:
18.51%
Yearly Volatility:
64.13%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.25%
Volatility in last five trading days has been -45.53% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.54%
Weekly VaR:
-19.10%
Monthly VaR:
-38.19%
How Much Can the price of
BOOM
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-34%
Worst case (decline):
>85%
This translates to price declining to:
$14.20
This translates to price declining to:
$3.24
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
BOOM is a 169.55% riskier investment compared to the market/S&P 500 & is 130.92% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -3.51% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
BOOM
Beta in relation to market/S&P 500--1.53
Expected beta in 1 year's time:
1.061
Expected beta in 3 year's time:
1.501
Unlevered (debt free) Beta:
1.188
Beta in relation to Nasdaq (XNAS):
0.405
Beta in relation to all global stocks::
0.435
Beta Comparison & Analysis
Beta of competitors/peers::
1.567
Beta is -2.33% lower than peers
Average Industry Beta:
23.957
Beta is -93.61% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
0.59%
Sustainable growth rate is -93.41% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.228
Alpha is -84.62% below industry average alpha yield
Alpha is -1450% below the market average
Analysis of Cost of Capital of
BOOM
Equity cost of capital:
0.136
Equity cost of capital is -91.85% below industry mean WACC
Unlevered (without debt) cost of capital:
10.58%
Before-tax cost of debt:
0.80%
After-tax cost of debt:
0.63%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.63%
WACC is -87.40% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$17.57
Revenue growth rate per share of (3Y):
0.77
Annual revenue growth rate is -120.56% below industry average
EPS:
-$0.73
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -100.00%
Equity growth rate per share is 63.81% higher than the industry
Debt per share
$6.59
EBITDA per share
$0.82
Valuation Analysis Today of
BOOM
P/E Ratio:
330.23
P/E Ratio of Competitors/Peers:
63.21
P/E ratio is 422.42% higher than main peers & is 1199.48% higher than the industry
-
BOOM is -216.33% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $9.95
Present value of the expected future dividends only: $1.83
P/S (Price to Sales ratio):
1.23
Price to sales ratio is -19.33% below the industry mean
P/B (Price to book value ratio):
0.77
-
-
Net income growth rate (3Y):
-100.65%
Net income growth rate is -220.35% lower than the industry average net income growth rate
Dividend Analysis
-
Dividend yeild: 1.16%
Previous Dividend: $0.13
Previous adjusted dividend: $0.13
Previous Dividend: $0.25
-
-
Average dividend payment (long-term): $0.13
Average dividend increase/decrease (growth rate) % per period: 0.00%
-
-
-
Previous dividend payment date: 15/04/2020
Previous dividend record date: 31/03/2020
Previous dividend declaration date: 17/03/2020
Dividend History:
2020-03-30--$0.13
--$0.00
--$0.00
2019-12-30--$0.13
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
36.62%
Net debt to equity ratio:
38.30%
Debt to assets ratio:
14.90%
Net debt to assets ratio:
15.58%
Debt-to-asset ratio is -73.07% below industry average
Ability to repay debt:
Interest coverage ratio:
13.44
Interest coverage ratio is 345.92% more than industry average
Looking forward:
Debt growth rate:
539.01%
Annual debt growth is 577% higher than industry average debt growth rate
Debt repayment rate in last quarter: 2.83%
Analysis of Key Statistics
Correlation of price movement with the market:
0.247
Statistical significance of correlation:
BOOM has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.416
Stock price is -40.65% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.416
Correlation of price movement with Nasdaq (^IXIC):
-0.015
Covariance of price movement with the market:
-0.035
Kurtosis
3.722
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.112
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
BOOM
Gross Profit Margin Ratio:
95%
Operating Profit Margin Ratio:
-1.63%
Operating profit margin is -34.07% lower than the industry
Net Profit Margin Ratio:
95%
Effective Tax Rate:
21.03%
Effective tax rate is -55.10% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-2.74%
Return on equity (ROE) is -92.34% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-1.12%
Return on assets (ROA) is -75.75% lower than the industry
Financial Leverage:
1.2x
Current Ratio:
2.11
Current ratio is -8.83% below industry average
Cash Conversion Cycle (days):
83.4
Cash conversion cycle is 29.80% above industry average
The remaining useful life of property plant & equipment is: 8.1 years
Stock based compensation to net income ratio:
-24.46%
In-depth Efficiency Analysis
Revenue generated per employee:
228.3K
Each employee generates -14% less revenue than industry average revenue per employee
EBITDA generated per employee:
10.7K
Each employee generates -69% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 6.4K
Each employee generates -224% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 4.1K
Each employee generates -7% less free cash flow than industry average revenue per employee
Assets/Capital per employee
404.6K
Each employee generates -7% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
BOOM
TELLURIAN INC. (XNYS:TELL)
Brooge Energy Ltd (XNAS:BROG)
ALLIANCE RESOURCE PARTNERS UNT (XNAS:ARLP)
KINETIK HOLDINGS INC. (XNAS:KNTK)
XOG
OASIS MIDSTREAM PARTNERS UNT (XNAS:OMP)
National Energy Services Reunited Corp. (XNAS:NESR)
DORCHESTER MINERALS UNT (XNAS:DMLP)
BERRY CORPORATION (BRY) (XNAS:BRY)
Current Analyst Ratings
Strong buy�0%
Buy�4%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
343.17M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
259.70M
83.47M
-
46.07M
73.42M
27.35M
14.04M
87.46M
-
1.19M
26.01M
16.04M
- 5602.00K
- 9639.00K
- 7246.00K
- 1524.00K
- 9639.00K
Statement of Cash Flow
Date:
Period:
16.34M
Differed Income Tax :
- 2714.00K
Stock Based Compensation :
2.36M
Change in Working Capital :
- 16714.00K
Accounts Receivables:
- 7480.00K
Other Working Capital:
5.97M
Other Non-Cash Items:
431.00K
Net Cash Provided by Operating Activities:
- 4584.00K
Investments in PP&E:
- 1536.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
15.38M
-
15.38M
79.78M
143.30M
17.35M
255.82M
120.48M
140.23M
242.57M
-
8.38M
96.45M
608.11M
-
863.92M
48.11M
21.29M
834.00K
26.95M
24.84M
121.19M
128.71M
64.40M
194.05M
-
315.23M
1.00M
102.03M
- 27742.0K
276.21M
March 31, 2022 at 6:00:00 AM
347.16M
351.50M
666.73M
-
150.00M
134.6M
-
-
- 1536.00K
- 3750.00K
-
- 1088.00K
-
- 4497.00K
- 9335.00K
21.00K
- 15434.00K
15.38M
30.81M
- 4584.00K
- 1536.00K
- 6120.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
BOOM
2023
2024
2025
2026
2027
$23.87
$26.33
$29.04
$32.03
$35.32