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Dycom Industries (DY)
:DY

Dycom (DY) AI Stock Analysis

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DY

Dycom

(NYSE:DY)

Rating:68Neutral
Price Target:
$244.00
▲(3.59%Upside)
Dycom's strong earnings performance and strategic market positioning are key strengths, reflected in a high earnings call score. However, technical indicators suggest caution due to overbought conditions, and valuation metrics highlight potential overvaluation. Financial performance is solid, though debt levels and cash flow volatility require monitoring.
Positive Factors
Earnings
Dycom reported first quarter results that exceeded both BofA and Wall Street expectations.
Growth Opportunities
Dycom remains exposed to multiple long-term growth vectors, including telecom/cable wireline builds, data centers, and wireless network expansion.
Revenue Guidance
Dycom increased its fiscal year 2026 revenue guidance above Street expectations.
Negative Factors
Guidance
The guidance for the second quarter might appear conservative and below consensus due to challenging comparisons with key customers.
Stock Performance
Despite recent stock strength, the company has underperformed compared to its peers, providing potential room for growth.
Stock Volatility
Dycom shares initially outperformed peers before reversing gains and ultimately underperforming, possibly due to technical pressure from a short seller report and conservative guidance.

Dycom (DY) vs. SPDR S&P 500 ETF (SPY)

Dycom Business Overview & Revenue Model

Company DescriptionDycom 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 MoneyDycom Industries generates revenue by providing specialized contracting services to telecommunications companies. The company's primary revenue streams include engineering services, network construction, and maintenance of telecommunications infrastructure. Dycom partners with major telecommunications providers, such as AT&T, Verizon, and Comcast, to support their network expansion and maintenance efforts. These partnerships enable Dycom to secure long-term contracts and recurring revenue through ongoing infrastructure projects. Additionally, the company benefits from the increasing demand for high-speed internet and wireless connectivity, driving the need for continued investment in telecommunication networks.

Dycom Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2026)
|
% Change Since: 21.65%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with Dycom exceeding guidance expectations and increasing revenue forecasts due to strong performance in fiber-to-the-home and data center projects. Despite some challenges related to macroeconomic uncertainty and cash flow, the company's record backlog and strategic growth initiatives indicate a strong position in the market.
Q1-2026 Updates
Positive Updates
Exceeding Guidance Expectations
Dycom exceeded the high end of guidance for Q1 2026 in all metrics, including revenue, adjusted EBITDA, and EPS. Revenue was $1.259 billion, a 10.2% increase over Q1 2025, and adjusted EBITDA was $150.4 million, representing an increase of 14.9% over Q1 2025.
Record Backlog
Dycom reported a record backlog of $8.1 billion, including a record $4.7 billion expected to be completed in the next 12 months.
Increased Revenue Expectations
Due to strong performance, Dycom increased its revenue expectations for fiscal 2026 to a range of $5.29 billion to $5.425 billion, representing a growth range of 12.5% to 15.4% over the previous year.
Fiber-to-the-Home and Data Center Growth
Significant growth in fiber-to-the-home programs and data center-related fiber demand, including new multiyear awards from ISP customers and hyperscaler projects.
Successful Share Repurchase
The company repurchased 200,000 shares for $30.2 million during the quarter, returning capital to shareholders.
Negative Updates
Macroeconomic Uncertainty and Tariff Impacts
Despite confidence in ongoing projects, Dycom acknowledged macroeconomic uncertainty and potential impacts from recent tariffs, although they expect these to be manageable.
Cash Flow Challenges
Operating cash flows were used in the quarter, with a negative cash flow of $54 million, reflecting seasonal cash use and the need for improvement in this area.
Company Guidance
During the Dycom Industries Inc. First Quarter 2026 Results Conference Call, the company reported that it exceeded the high end of its guidance on all key financial metrics, including revenue, adjusted EBITDA, and EPS. The first quarter revenue was $1.259 billion, reflecting a 10.2% increase compared to Q1 2025. The adjusted EBITDA was $150.4 million, which represented 11.9% of revenues and marked a 14.9% increase over the prior year. The company also repurchased 200,000 shares for $30.2 million during the quarter. Based on strong performance and market conditions, Dycom raised its revenue expectations for the fiscal year to a range of $5.29 billion to $5.425 billion. The company highlighted its record backlog of $8.1 billion, with $4.7 billion expected to be completed in the next 12 months, underscoring its confidence in industry drivers and strategic growth opportunities.

Dycom Financial Statement Overview

Summary
Dycom shows a strong growth trajectory, particularly with revenue and EBIT margins, contributing to overall profitability. While the balance sheet is stable with manageable leverage, increasing debt levels require attention. Cash flow is robust, though free cash flow volatility needs careful capital management.
Income Statement
75
Positive
Dycom exhibits strong revenue growth with a substantial increase from $3.1 billion in 2022 to $4.2 billion in 2024, reflecting a positive trajectory. The company maintains a healthy gross profit margin, although net profit margins indicate room for improvement. The EBIT and EBITDA margins are robust, indicating operational efficiency. However, net income growth appears to be moderate, necessitating careful cost management.
Balance Sheet
70
Positive
The balance sheet reflects a moderate debt-to-equity ratio, highlighting manageable leverage levels. Return on equity has improved over time, showcasing enhanced profitability. The equity ratio indicates financial stability, but the total debt has increased significantly, requiring attention to debt servicing.
Cash Flow
68
Positive
Operating cash flow has been consistently positive, supporting business operations, but free cash flow shows volatility due to capital expenditures. The company has demonstrated growth in free cash flow over recent years, enhancing liquidity. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
4.82B4.70B4.18B3.81B3.13B3.20B
Gross Profit
647.68M733.57M813.76M648.20M496.64M557.18M
EBIT
391.46M340.54M486.08M220.74M86.00M130.11M
EBITDA
577.45M567.36M507.69M396.99M234.21M297.41M
Net Income Common Stockholders
231.91M233.41M218.92M142.21M48.57M34.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.12M92.67M101.09M224.19M310.76M11.77M
Total Assets
3.10B2.95B2.52B2.31B2.12B1.94B
Total Debt
1.15B1.06B885.04M892.02M901.91M646.41M
Net Debt
1.13B963.29M783.95M667.84M591.15M634.64M
Total Liabilities
1.84B1.71B1.46B1.44B1.36B1.13B
Stockholders Equity
1.27B1.24B1.05B868.75M758.54M811.31M
Cash FlowFree Cash Flow
44.53M98.64M40.48M-36.17M151.61M323.73M
Operating Cash Flow
332.53M349.10M258.98M164.79M308.65M381.78M
Investing Cash Flow
-421.57M-395.20M-306.16M-183.93M-151.68M-44.63M
Financing Cash Flow
78.92M37.69M-75.91M-67.43M142.01M-383.44M

Dycom Technical Analysis

Technical Analysis Sentiment
Positive
Last Price235.54
Price Trends
50DMA
188.80
Positive
100DMA
179.32
Positive
200DMA
181.80
Positive
Market Momentum
MACD
14.06
Positive
RSI
72.06
Negative
STOCH
53.47
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 235.54 is above the 20-day moving average (MA) of 224.21, above the 50-day MA of 188.80, and above the 200-day MA of 181.80, indicating a bullish trend. The MACD of 14.06 indicates Positive momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 53.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DY.

Dycom Risk Analysis

Dycom disclosed 47 risk factors in its most recent earnings report. Dycom reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Dycom Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$5.90B89.099.21%31.49%-0.13%
77
Outperform
$6.22B23.8836.67%4.84%77.84%
GVGVA
75
Outperform
$3.94B39.6112.75%0.58%11.42%247.33%
74
Outperform
$3.95B19.4115.30%0.43%12.45%42.45%
FLFLR
70
Outperform
$8.20B4.6366.58%7.16%523.56%
DYDY
68
Neutral
$6.81B29.5619.76%12.77%1.55%
63
Neutral
$769.21M8.814.79%3.70%1.11%-32.34%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DY
Dycom
233.15
62.52
36.64%
FLR
Fluor
48.28
3.26
7.24%
GVA
Granite Construction
89.07
27.53
44.74%
PRIM
Primoris Services
74.25
20.59
38.37%
STRL
Sterling Construction
202.99
83.74
70.22%
ROAD
Construction Partners
103.67
45.89
79.42%

Dycom Corporate Events

Executive/Board ChangesShareholder Meetings
Dycom Announces Board Changes at Annual Meeting
Neutral
May 27, 2025

At Dycom Industries’ 2025 Annual Meeting of Shareholders on May 22, 2025, Stephen C. Robinson retired from the Board of Directors in accordance with the company’s Director Retirement Policy, reducing the board size from nine to eight members. The shareholders elected Eitan Gertel, Daniel S. Peyovich, and Richard K. Sykes as directors until 2028, approved the executive compensation on an advisory basis, and ratified PricewaterhouseCoopers LLP as the independent auditor for fiscal 2026.

The most recent analyst rating on (DY) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Dycom Highlights Strong Fiscal 2025 Financial Performance
Positive
May 22, 2025

On May 22, 2025, Dycom Industries released presentation materials on their website, highlighting strong financial performance for fiscal 2025, with a 12.6% increase in contract revenues and a 19.8% rise in adjusted EBITDA. The company attributes its success to meeting growing industry demand and maintaining high-quality service. The presentation also underscores the increasing demand for high-speed connectivity and fiber infrastructure, driven by consumer data usage and significant investments in AI-enabled data centers. State and federal programs are also contributing to broadband expansion, particularly in underserved rural areas, indicating a robust outlook for Dycom’s continued growth.

The most recent analyst rating on (DY) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Dycom Reports Strong Q1 2026 Results, Exceeds Guidance
Positive
May 21, 2025

On May 21, 2025, Dycom Industries, Inc. reported strong fiscal 2026 first-quarter results, exceeding guidance on revenue, Adjusted EBITDA, and EPS. The company achieved a 10.2% increase in revenue compared to Q1 2025 and repurchased 200,000 shares for $30.2 million. Dycom’s record backlog of $8.1 billion reflects its confidence in industry drivers and market opportunities. The company plans to increase its revenue expectations for the year, driven by growth in its service and maintenance business and fiber-to-the-home deployments. Dycom’s strategic positioning and ability to handle industry complexities have favored its operations, despite macroeconomic uncertainties.

The most recent analyst rating on (DY) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.