Dycom (DY) AI Stock Analysis

• Market Cap: $10.19B
• Dividend Yield: N/A
• Average Volume (3M): 388.30K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.05
• Revenue Growth: 13.19%
• EPS Growth: 33.58%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.63
• Shares Outstanding: 28,956,050
• 10 Day Avg. Volume: 330,025
• 30 Day Avg. Volume: 388,303
• PEG Ratio: 3.20
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 56.92
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 11.39
• Enterprise Value/Ebitda: 13.79
• 1Y Price Target: $373.75
• Price Target Upside: 7.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 11.1
• Revenue Forecast (FY): $5.39B

• Rating: 80 Outperform
• Price Target: $402.00 ▲(15.22% Upside)

Dycom's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a bullish outlook, though caution is advised due to high valuation metrics. The strategic acquisition and increased revenue guidance further bolster the company's growth potential.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective execution of contracts, enhancing long-term business stability.

Strategic Acquisition

The acquisition of Power Solutions expands Dycom's capabilities in the growing digital and AI infrastructure space, positioning it for future growth.

Improved Cash Flow

Enhanced cash flow management and reduced DSOs improve liquidity and financial flexibility, supporting sustainable growth and investment.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Industry Competition

Intense competition in the industry may pressure margins and require continuous innovation to maintain market share and profitability.

Integration Risk

Integrating a large acquisition can pose challenges and risks, potentially diverting management focus and resources from core operations.

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 generates revenue primarily through contracts with telecommunications service providers for the construction and maintenance of communication infrastructure. The company earns money by providing specialized labor and equipment needed for network construction projects, as well as ongoing maintenance services. Key revenue streams include project-based contracts, where Dycom is compensated based on the completion of specific tasks or milestones, and service agreements for ongoing maintenance. Additionally, Dycom benefits from long-term relationships with major clients, which provide a steady flow of work. Strategic partnerships with telecom giants also contribute to the company's earnings, as these collaborations can lead to significant contracts for large-scale network deployments.

Dycom Financial Statement Overview

Summary

Dycom exhibits strong financial health with consistent revenue growth, improving profitability, and effective cash flow management. The company maintains a balanced capital structure with manageable leverage, positioning it well for future growth opportunities.

Income Statement

Dycom has demonstrated strong revenue growth with a TTM increase of 3.6% and consistent profitability improvements. The gross profit margin is stable at around 19.5%, and the net profit margin has improved to 5.75% in the TTM, indicating effective cost management. EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.72 in the TTM, indicating manageable leverage. Return on equity has improved to 22.21%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Dycom's cash flow performance is robust, with a significant free cash flow growth of 140.88% in the TTM. The operating cash flow to net income ratio is healthy at 0.61, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.31 suggests good cash conversion, supporting future investments and debt repayments.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.70B	4.18B	3.81B	3.13B	3.20B
Gross Profit	733.57M	650.67M	504.02M	343.99M	381.28M
EBITDA	567.36M	507.69M	396.99M	270.43M	296.61M
Net Income	233.41M	218.92M	142.21M	48.57M	34.34M
Balance Sheet
Total Assets	2.95B	2.52B	2.31B	2.12B	1.94B
Cash, Cash Equivalents and Short-Term Investments	104.00M	121.30M	243.83M	310.76M	11.77M
Total Debt	1.06B	885.04M	892.02M	901.91M	646.41M
Total Liabilities	1.71B	1.46B	1.44B	1.36B	1.13B
Stockholders Equity	1.24B	1.05B	868.75M	758.54M	811.31M
Cash Flow
Free Cash Flow	98.64M	40.48M	-36.17M	151.61M	323.73M
Operating Cash Flow	349.10M	258.98M	164.79M	308.65M	381.78M
Investing Cash Flow	-395.20M	-306.16M	-183.93M	-151.68M	-44.63M
Financing Cash Flow	37.69M	-75.91M	-67.43M	142.01M	-383.44M

Dycom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 348.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DY, the sentiment is Positive. The current price of 348.91 is above the 20-day moving average (MA) of 326.84, above the 50-day MA of 304.21, and above the 200-day MA of 238.31, indicating a bullish trend. The MACD of 17.03 indicates Negative momentum. The RSI at 66.07 is Neutral, neither overbought nor oversold. The STOCH value of 58.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DY.

Dycom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	80 Outperform	$10.19B	34.36	21.90%	―	13.19%	33.58%
IESC	76 Outperform	$8.51B	29.46	40.54%	―	16.89%	54.13%
PRIM	75 Outperform	$6.79B	24.83	18.56%	0.24%	21.45%	67.31%
MTZ	74 Outperform	$17.32B	52.45	11.18%	―	12.99%	274.10%
KBR	73 Outperform	$5.63B	14.40	27.77%	1.48%	9.66%	29.01%
FLR	64 Neutral	$7.09B	2.20	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Dycom Corporate Events

Dycom Acquires Power Solutions for $1.95 Billion

On November 18, 2025, Dycom Industries, Inc. announced its entry into a Unit Purchase Agreement to acquire Power Solutions, LLC, a premier electrical contractor specializing in data centers, for $1.95 billion. This acquisition is expected to enhance Dycom’s growth in digital and data center infrastructure services, expand its exposure to the rapidly growing data center demand, and improve its financial metrics, including Adjusted EBITDA margin and free cash flow. The transaction is anticipated to close before the end of the fiscal year, subject to customary conditions.

Dycom Appoints Stephen LeClair to Board of Directors

On November 10, 2025, Dycom Industries, Inc. announced the appointment of Mr. Stephen O. LeClair to its Board of Directors. Mr. LeClair, who has an extensive background in leadership roles at Core & Main, Inc. and HD Supply, brings significant experience in corporate strategy and growth. His appointment increases the board size from nine to ten members and is effective immediately, with a term extending until the 2026 Annual Meeting of Shareholders. This strategic move is expected to enhance Dycom’s governance and potentially strengthen its market position.

Dycom Appoints Phillip Gallagher to Board of Directors

On October 7, 2025, Dycom Industries, Inc. announced the appointment of Mr. Phillip R. Gallagher to its Board of Directors. Mr. Gallagher, who is currently the CEO of Avnet, Inc., brings extensive experience in corporate strategy, growth opportunities, and leadership in the electronic components distribution industry. His appointment is effective immediately and will last until the Company’s 2026 Annual Meeting of Shareholders. The Board has increased its number of members from eight to nine to accommodate this appointment.