Dycom (DY) AI Stock Analysis

• Market Cap: $10.83B
• Dividend Yield: N/A
• Average Volume (3M): 440.17K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.06
• Revenue Growth: 13.19%
• EPS Growth: 33.58%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.03
• Shares Outstanding: 29,970,066
• 10 Day Avg. Volume: 567,536
• 30 Day Avg. Volume: 440,169
• PEG Ratio: 1.82
• Price to Book (P/B): 5.69
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 26.36
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 11.50
• Enterprise Value/Ebitda: 13.60
• 1Y Price Target: $458.11
• Price Target Upside: 26.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 13.87
• Revenue Forecast (FY): $7.02B

• Rating: 62 Neutral
• Price Target: $382.00 ▲(5.69% Upside)
• Action: Downgraded Date: 03/10/26
• Date: Action: Downgraded 03/10/26

The score is driven primarily by improving fundamentals and a positive FY2027 outlook with strong backlog and margin expansion targets. Offsetting this are increased leverage and uneven cash conversion history, while near-term technical signals are bearish/oversold and valuation is expensive given the very high P/E and no dividend yield provided.

Positive Factors

Record backlog and strong demand visibility

A record backlog (~$9.5B) with roughly $6.3B slated to convert in the next 12 months gives multi‑quarter revenue visibility, supports staffing and procurement plans, and reduces near‑term revenue volatility, anchoring growth through conversion of contracted work and sustaining organic expansion.

Sustained margin improvement and operating leverage

Material margin expansion demonstrates improved execution and scale economics. Higher gross and operating margins reflect better project mix, pricing, and cost control, which should support durable profitability as revenue scales and the business captures higher‑margin Building Systems and long‑haul work.

Strategic acquisition expands addressable market

The Power Solutions acquisition adds data‑center and building systems capabilities, widening Dycom's serviceable market and cross‑sell opportunities. Immediate accretion to adjusted EBITDA and EPS (ex‑amortization) and retained local management improve scale and diversify revenue sources structurally.

Negative Factors

Elevated leverage from acquisition financing

A sharp increase in debt materially raises financial risk and reduces flexibility. Elevated leverage heightens sensitivity to cash‑flow shocks, constrains capital allocation, and makes the company more vulnerable to slower BEAD conversion, project delays, or tighter credit markets while management executes deleveraging.

Uneven cash conversion and working‑capital intensity

While cash generation improved, FCF conversion lags net income and has been volatile historically. High DSOs and working‑capital swings mean cash is sensitive to billing cycles and project timing, limiting reinvestment flexibility and complicating reliable deleveraging and shareholder return planning.

Program timing and revenue composition risks (BEAD, wireless headwind)

Dependency on multi‑state BEAD program timing and a known ~$100M wireless replacement revenue decline create structural revenue timing and composition risks. Delays or underfunding of BEAD slow growth, while program step‑downs shift the mix toward areas requiring ramp and execution to replace lost volume.

Dycom Business Overview & Revenue Model

Company Description

Dycom Industries, Inc. provides specialty contracting services in the United States. The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. It also provides tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable system operators. In addition, the company offers construction and maintenance services for electric and gas utilities, and other customers; and underground facility locating services, such as locating telephone, cable television, power, water, sewer, and gas lines for various utility companies, including telecommunication providers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.

How the Company Makes Money

Dycom makes money primarily by performing contracted services for telecommunications carriers, cable multiple-system operators, and other network/infrastructure owners, earning revenue as projects are executed. Its key revenue streams are (1) construction and installation work tied to network builds and upgrades (e.g., placing/connecting outside plant, installing network equipment, and supporting last-mile deployments) and (2) recurring maintenance and repair services for existing networks and infrastructure. Revenue is generally generated under service agreements and project-based contracts where Dycom is paid based on delivered units of work, milestones, or time-and-materials depending on the contract structure; revenue volume is driven by customers’ capital spending on network expansion and technology upgrade cycles and by ongoing operating spend for maintenance. Dycom’s earnings are also influenced by the concentration and size of large customer programs (major carrier and cable operator relationships), the mix of higher-volume build programs versus lower-volume maintenance work, labor and subcontractor utilization, and its ability to manage project execution, costs, and safety/compliance requirements across geographies.

Dycom Financial Statement Overview

Summary

Operations are improving (strong multi-year revenue growth and sharp 2026 margin expansion) and 2026 cash flow rebounded meaningfully. The main offset is balance-sheet risk: debt jumped to ~$3.0B in 2026 (debt-to-equity ~1.61), and cash conversion has been uneven (historical FCF volatility and FCF below net income).

Income Statement

DY shows a strong earnings trajectory over the last several annual periods, with revenue rising from ~$3.2B (2021) to ~$5.5B (2026) and profitability improving meaningfully. In the latest annual period (2026), margins expanded sharply versus 2025 (gross margin ~20.6% vs ~15.6%; operating margin ~12.5% vs ~7.8%), while net margin held around ~5%. Strengths include consistent top-line growth in recent years and clear operating leverage. Key watch-outs are that net margins remain modest for the level of activity (execution/cost risk typical for the industry) and growth has been uneven earlier in the period (revenue declines in 2021–2022).

Balance Sheet

The balance sheet has become more leveraged. Total debt increased materially in the latest annual period (2026) to ~$3.0B from ~$1.1B in 2025, pushing debt-to-equity up to ~1.61 (from ~0.85). Equity also grew to ~$1.86B, and return on equity remains solid (~15% in 2026), but the sharp step-up in leverage reduces financial flexibility and raises sensitivity to downturns, project issues, or tighter credit conditions.

Cash Flow

Cash generation improved substantially in the latest annual period (2026), with operating cash flow at ~$643M and free cash flow at ~$402M, and free cash flow growth strong versus 2025. However, cash conversion still isn’t consistently strong: free cash flow is below net income in recent years (about ~0.63x in 2026; ~0.28x in 2025), and the company has a history of volatility including negative free cash flow in 2023. Overall, the trend is positive, but working-capital swings and uneven conversion remain key risks.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	5.55B	4.70B	4.18B	3.81B	3.13B
Gross Profit	1.14B	733.57M	650.67M	504.02M	343.99M
EBITDA	964.20M	567.36M	507.69M	396.99M	270.43M
Net Income	281.19M	233.41M	218.92M	142.21M	48.57M
Balance Sheet
Total Assets	5.98B	2.95B	2.52B	2.31B	2.12B
Cash, Cash Equivalents and Short-Term Investments	709.16M	104.00M	121.30M	243.83M	310.76M
Total Debt	2.99B	1.06B	885.04M	892.02M	901.91M
Total Liabilities	4.12B	1.71B	1.46B	1.44B	1.36B
Stockholders Equity	1.86B	1.24B	1.05B	868.75M	758.54M
Cash Flow
Free Cash Flow	401.71M	98.64M	40.48M	-36.17M	151.61M
Operating Cash Flow	642.50M	349.10M	258.98M	164.79M	308.65M
Investing Cash Flow	-1.84B	-395.20M	-306.16M	-183.93M	-151.68M
Financing Cash Flow	1.81B	37.69M	-75.91M	-67.43M	142.01M

Dycom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 361.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DY, the sentiment is Neutral. The current price of 361.43 is below the 20-day moving average (MA) of 391.36, below the 50-day MA of 382.54, and above the 200-day MA of 307.04, indicating a neutral trend. The MACD of -10.57 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 19.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DY.

Dycom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IESC	74 Outperform	$8.98B	21.15	40.95%	―	16.89%	54.13%
MTZ	74 Outperform	$24.04B	42.42	13.08%	―	12.99%	274.10%
PRIM	74 Outperform	$7.59B	24.39	17.49%	0.25%	21.45%	67.31%
KBR	69 Neutral	$4.69B	12.59	28.27%	1.65%	9.66%	29.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DY	62 Neutral	$10.83B	37.65	18.81%	―	13.19%	33.58%
FLR	55 Neutral	$6.55B	-131.50	-1.14%	―	-1.81%	1228.51%

Dycom Corporate Events

Dycom Establishes New $800 Million Term Loan Facility

On January 27, 2026, Dycom Industries, Inc. amended its existing credit arrangements by entering into a First Amendment to its Third Amended and Restated Credit Agreement, establishing a new $800 million senior secured Term Loan B facility. The proceeds were used to refinance a $600 million 364-day senior secured bridge loan, cover related fees and expenses, and add cash to the company’s balance sheet, potentially strengthening its liquidity and capital structure. The Term Loan B bears interest at term SOFR or a base rate plus specified margins and will begin amortizing at a rate of 0.25% on September 15, 2026, with quarterly payments thereafter, setting a clearer schedule for Dycom’s debt repayment obligations.

The most recent analyst rating on (DY) stock is a Buy with a $426.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Completes Power Solutions Acquisition, Expands Credit Facilities

On December 23, 2025, Dycom Industries completed its previously announced acquisition of Power Solutions, LLC, one of the Mid-Atlantic’s largest electrical contractors serving data centers, for approximately $1.63 billion in cash plus about 1.0 million Dycom common shares, on a cash-free, debt-free basis. Power Solutions will continue to operate under its own brand from its Bowie, Maryland headquarters with its existing management team, while the transaction is described as immediately accretive to Dycom’s adjusted EBITDA margin and adjusted diluted EPS (excluding non-cash intangible amortization) and as enhancing free cash flow, reinforcing Dycom’s positioning in fast-growing digital and data center infrastructure services. To finance the deal and strengthen its capital structure, Dycom simultaneously amended and restated its credit agreement, extending debt maturities to December 2030, expanding its revolving credit facility to $800 million, increasing its term loan facility to $1.54 billion and adding a $600 million 364-day senior secured bridge loan, whose proceeds, together with the term loan, refinanced existing borrowings and funded the cash portion of the acquisition.

The most recent analyst rating on (DY) stock is a Buy with a $420.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Announces Planned Board Change with Director Retirement

Dycom Industries, Inc., a specialty contractor serving the telecommunications and utility network sectors, announced that director Luis Avila-Marco has decided not to stand for reelection at the company’s 2026 Annual Meeting of Shareholders and will retire from the Board at that time. The company stated that Avila-Marco’s decision, disclosed on December 18, 2025, was not due to any disagreement over operations, policies, or practices, and it plans to reduce the size of its Board from 10 to 9 members following his retirement, signaling a modest governance adjustment rather than a strategic shift.

The most recent analyst rating on (DY) stock is a Buy with a $392.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.