BOOM - DMC Global's Steady Fundamentals Will Counter The Completions Activity Slowdown
DMC Global Weakens
The completions activity slowdown has affected DMC Global's (BOOM) performance considerably in Q4. The company's falling backlog points to the lack of business in the short term as the energy industry is going through a demand crisis and excess supply.
On the other hand, DMC Global retains its competitive advantages in the perforating gun systems and automated shaped charge manufacturing. I expect the pricing to start to improve in 2H 2020. The company's balance sheet is also strong, although free cash flow generation is not consistent. I do not think