C

DMC Global Inc. — Earnings Quality Grade C

BOOM · Industrials

Some red flags

Revenue
$610M
2025
Net Income
-$18M
2025
Gross Margin
22.2%
Free Cash Flow
$37M
01

Screening Summary

12
Passed
4
Watch
1
Failed
-3.08
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 56 days, change -3 days YoY

A2AR vs Revenue Growth

AR growth -9.3% vs revenue growth -5.1%

A3Revenue vs CFFO

Revenue -5.1%, CFFO 14.9%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -5.3% vs COGS -3.6%. Normal

B2CapEx vs Revenue

CapEx growth -4.5% vs revenue -5.1%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 81.4%, exceeds 70%

B4Gross Margin

Gross margin 22.2%, change -1.2pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -2.99. Below 1.0

C2Free Cash Flow

FCF $0.0B, FCF/NI = -2.07

C3Accruals Ratio

Accruals ratio = -11.2%. Low accruals

!
C4Cash vs Debt

Cash $0.0B covers 63% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.2B = 64% of equity. Over 50%

!
D2Leverage

Interest coverage = 0.5x (<2x). Financial stress

D3Soft Asset Growth

Other assets -14.8% vs revenue -5.1%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -11% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.08 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-3.08
-4.0 Clean-2.22 Grey-1.78 Danger0
0.956
DSRI
AR growing faster than revenue?
1.056
GMI
Gross margin declining?
0.927
AQI
Asset quality deteriorating?
0.949
SGI
Revenue growth rate
1.013
DEPI
Depreciation slowing?
1.068
SGAI
SG&A ratio changing?
-0.1123
TATA
Accruals level
0.935
LVGI
Leverage increasing?
05

Altman Z-Score

2.92
Safe Zone
0 Distress1.102.605.0+ Safe
0.2706
Liquidity
-0.0212
Cumulative profit
-0.0019
Operating efficiency
1.171
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25