Dycom (DY) AI Stock Analysis

• Market Cap: $7.24B
• Dividend Yield: N/A
• Average Volume (3M): 330.15K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.00
• Revenue Growth: 12.77%
• EPS Growth: 1.55%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): 2.09
• Shares Outstanding: 28,924,837
• 10 Day Avg. Volume: 290,387
• 30 Day Avg. Volume: 330,147
• PEG Ratio: -61.38
• Price to Book (P/B): 5.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 159.60
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 3.96
• 1Y Price Target: $250.00
• Price Target Upside: -0.95% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $270.00 ▲(6.97%Upside)

Dycom's overall stock score is bolstered by strong earnings performance and a positive earnings call that highlights growth opportunities. While financial performance is solid, challenges in cash flow and a high valuation limit the score. Technical analysis suggests strong momentum, though caution is advised due to potential overbought conditions.

Positive Factors

Acquisition Performance

The wireless business acquired from Black and Veatch is expected to outperform initial expectations, contributing positively to Dycom's growth.

Earnings

Dycom reported results that exceeded both BofA and the Street's expectations.

Revenue Guidance

Dycom increased its revenue guidance for FY2026 beyond what analysts expected, indicating strong future performance.

Negative Factors

Guidance

The guidance for the second quarter might seem conservative and below consensus due to challenging comparisons with key customers.

Stock Performance

Despite recent stock strength, Dycom has underperformed compared to its peers, suggesting potential challenges in matching peer performance.

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 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 Financial Statement Overview

Summary

Dycom demonstrates solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet shows moderate leverage with a healthy ROE, although there are challenges in free cash flow generation.

Income Statement

Dycom has shown consistent revenue growth, with a TTM (Trailing-Twelve-Months) increase of approximately 2.5% over the previous annual period. Gross profit margins are solid at around 19.9% for TTM, indicating good cost management. Net profit margin is stable at approximately 4.8% for TTM, reflecting sustained profitability. EBITDA and EBIT margins are healthy at 12.1% and 7.2% respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is approximately 0.90, indicating moderate leverage. Return on Equity (ROE) stands at about 18.3% for TTM, demonstrating strong profitability relative to shareholder equity. The equity ratio is 40.8%, suggesting a balanced capital structure but with room for improvement in terms of equity proportion.

Cash Flow

Dycom's free cash flow has decreased by 54.9% TTM compared to the previous year, indicating potential strains in generating cash. However, the operating cash flow to net income ratio of 1.43 reflects good cash conversion. The free cash flow to net income ratio is lower at 0.19, pointing to challenges in translating profits into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.82B	4.70B	4.18B	3.81B	3.13B	3.20B
Gross Profit	958.85M	932.14M	813.76M	648.20M	496.64M	557.17M
EBITDA	582.91M	567.36M	507.69M	364.92M	238.59M	264.79M
Net Income	231.91M	233.41M	218.92M	142.21M	48.57M	34.34M
Balance Sheet
Total Assets	3.10B	2.95B	2.52B	2.31B	2.12B	1.94B
Cash, Cash Equivalents and Short-Term Investments	16.12M	92.67M	101.09M	224.19M	310.76M	11.77M
Total Debt	1.15B	1.06B	885.04M	892.02M	901.91M	646.41M
Total Liabilities	1.84B	1.71B	1.46B	1.44B	1.36B	1.13B
Stockholders Equity	1.27B	1.24B	1.05B	868.75M	758.54M	811.31M
Cash Flow
Free Cash Flow	44.53M	98.64M	40.48M	-36.17M	151.61M	323.73M
Operating Cash Flow	332.53M	349.10M	258.98M	164.79M	308.65M	381.78M
Investing Cash Flow	-421.57M	-395.20M	-306.16M	-183.93M	-151.68M	-44.63M
Financing Cash Flow	78.92M	37.69M	-75.91M	-67.43M	142.01M	-383.44M

Dycom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 252.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 252.4 is above the 20-day moving average (MA) of 241.99, above the 50-day MA of 222.29, and above the 200-day MA of 187.74, indicating a bullish trend. The MACD of 8.34 indicates Positive momentum. The RSI at 71.82 is Negative, neither overbought nor oversold. The STOCH value of 77.06 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
PRIM	79 Outperform	$4.59B	22.54	15.30%	0.38%	12.45%	42.45%
ROAD	78 Outperform	$5.90B	90.43	9.21%	―	31.49%	-0.13%
STRL	77 Outperform	$7.10B	27.62	36.67%	―	4.84%	77.84%
DY	76 Outperform	$7.24B	32.01	19.76%	―	12.77%	1.55%
GVA	75 Outperform	$4.11B	41.37	12.75%	0.55%	11.42%	247.33%
FLR	70 Outperform	$8.50B	4.98	66.58%	―	7.16%	523.56%
Sector *	65 Neutral	€9.36B	16.43	3.99%	3.34%	2.85%	-16.21%

Dycom Corporate Events

Dycom Updates Board Retirement Age Policy

On June 13, 2025, Dycom Industries, Inc. amended its By-laws to remove mandatory retirement requirements for non-employee Board members. The updated guidelines set a retirement age of 75 for non-employee directors, who cannot stand for election or re-election if they have reached this age, although the Board may waive this policy under special circumstances for one additional term.

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.

Dycom Announces Board Changes at Annual Meeting

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.

Dycom Highlights Strong Fiscal 2025 Financial Performance

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.

Dycom Reports Strong Q1 2026 Results, Exceeds Guidance

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.