Dycom (DY) AI Stock Analysis

• Market Cap: $6.74B
• Dividend Yield: N/A
• Average Volume (3M): 410.95K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.99
• Revenue Growth: 12.77%
• EPS Growth: 1.55%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 2.09
• Shares Outstanding: 28,924,837
• 10 Day Avg. Volume: 354,711
• 30 Day Avg. Volume: 410,953
• PEG Ratio: -2.59
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.41
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 1.04
• 1Y Price Target: $247.00
• Price Target Upside: 5.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $244.00 ▲(4.65%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 Business Overview & Revenue Model

Company Description

Dycom Industries, Inc. is a leading provider of specialty contracting services throughout the United States. The company primarily serves the telecommunications industry by offering a wide range of services, including engineering, constructing, and maintaining telecommunication infrastructure. Dycom's core services include fiber optic cable installation, wireless construction, and maintenance activities, ensuring robust network connectivity and expansion for its clients.

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 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

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

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

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
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
647.68M	733.57M	813.76M	648.20M	496.64M	557.18M
	EBIT
391.46M	340.54M	486.08M	220.74M	86.00M	130.11M
	EBITDA
577.45M	567.36M	507.69M	396.99M	234.21M	297.41M
	Net Income Common Stockholders
231.91M	233.41M	218.92M	142.21M	48.57M	34.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.12M	92.67M	101.09M	224.19M	310.76M	11.77M
	Total Assets
3.10B	2.95B	2.52B	2.31B	2.12B	1.94B
	Total Debt
1.15B	1.06B	885.04M	892.02M	901.91M	646.41M
	Net Debt
1.13B	963.29M	783.95M	667.84M	591.15M	634.64M
	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: 233.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 233.15 is above the 20-day moving average (MA) of 226.26, above the 50-day MA of 190.30, and above the 200-day MA of 182.10, indicating a bullish trend. The MACD of 13.14 indicates Positive momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.64 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
ROAD	81 Outperform	$5.81B	89.09	9.21%	―	31.49%	-0.13%
STRL	77 Outperform	$6.17B	23.73	36.67%	―	4.84%	77.84%
GVA	75 Outperform	$3.90B	39.15	12.75%	0.58%	11.42%	247.33%
PRIM	74 Outperform	$4.01B	19.69	15.30%	0.43%	12.45%	42.45%
FLR	70 Outperform	$7.95B	4.62	66.58%	―	7.16%	523.56%
DY	68 Neutral	$6.74B	29.56	19.76%	―	12.77%	1.55%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

Dycom Corporate Events

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.