Dycom (DY) AI Stock Analysis

• Market Cap: $7.44B
• Dividend Yield: N/A
• Average Volume (3M): 381.49K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.03
• Revenue Growth: 12.61%
• EPS Growth: 10.33%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 76
• Industry: Engineering & Construction
• EPS (TTM): 3.33
• Shares Outstanding: 28,954,102
• 10 Day Avg. Volume: 631,382
• 30 Day Avg. Volume: 381,486
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 13.96
• 1Y Price Target: $294.29
• Price Target Upside: 15.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $302.00 ▲(18.14% Upside)

Dycom's overall stock score of 74 reflects its strong financial performance and positive earnings call, which highlight robust growth prospects and strategic opportunities in expanding markets. However, the technical analysis suggests caution in the short term, and the valuation indicates the stock is trading at a premium. These factors combine to provide a balanced outlook, with significant strengths in financial performance and future growth potential.

Positive Factors

Contract Awards

Dycom Industries announced multiple FTTH and hyperscale contract awards, supporting a long-term positive view of the stock.

Financial Performance

Dycom Industries reported strong 2Q adjusted EBITDA margins, attributed to operating leverage and efficient cost management.

Revenue Guidance

Dycom increased its FY2026 revenue guidance above Street expectations.

Negative Factors

Guidance Outlook

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.

Dycom Business Overview & Revenue Model

Company Description

Dycom Industries, Inc. (NYSE: DY) is a leading provider of specialty contracting services primarily focused on the telecommunications infrastructure sector in the United States. The company offers a comprehensive range of services, including the installation, maintenance, and upgrade of communication networks. Dycom serves various clients, including major telecommunications carriers and cable television providers, and specializes in fiber optic and broadband network solutions, as well as related engineering and design services.

How the Company Makes Money

Dycom generates revenue primarily through contracts with telecommunications companies for the provision of construction and maintenance services related to their network infrastructure. The company's revenue model is heavily dependent on project-based work, where it earns fees for services rendered on a per-project basis. Key revenue streams include installation services for fiber optic networks, maintenance services, and engineering services. Dycom has established significant partnerships with major telecommunications providers, which contribute to its earnings stability and growth potential. The demand for high-speed internet and wireless connectivity continues to rise, driven by technological advancements and consumer needs, creating a favorable environment for Dycom's revenue generation. Additionally, the company often engages in multi-year contracts, providing predictable cash flows over extended periods.

Dycom Financial Statement Overview

Summary

Dycom shows strong revenue growth and profitability margins, with a solid balance sheet. However, challenges in free cash flow generation slightly temper the overall financial performance.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.99B	4.70B	4.18B	3.81B	3.13B	3.20B
Gross Profit	1.02B	932.14M	813.76M	648.20M	496.64M	557.17M
EBITDA	634.39M	567.36M	507.69M	364.92M	238.59M	264.79M
Net Income	260.99M	233.41M	218.92M	142.21M	48.57M	34.34M
Balance Sheet
Total Assets	3.22B	2.95B	2.52B	2.31B	2.12B	1.94B
Cash, Cash Equivalents and Short-Term Investments	28.46M	92.67M	101.09M	243.83M	310.76M	11.77M
Total Debt	1.15B	1.06B	885.04M	892.02M	901.91M	646.41M
Total Liabilities	1.85B	1.71B	1.46B	1.44B	1.36B	1.13B
Stockholders Equity	1.37B	1.24B	1.05B	868.75M	758.54M	811.31M
Cash Flow
Free Cash Flow	123.23M	98.64M	40.48M	-36.17M	151.61M	323.73M
Operating Cash Flow	397.49M	349.10M	258.98M	164.79M	308.65M	381.78M
Investing Cash Flow	-383.94M	-395.20M	-306.16M	-183.93M	-151.68M	-44.63M
Financing Cash Flow	-4.75M	37.69M	-75.91M	-67.43M	142.01M	-383.44M

Dycom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 255.63
• 50DMA: Negative
• 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 Neutral. The current price of 255.63 is below the 20-day moving average (MA) of 267.14, below the 50-day MA of 256.99, and above the 200-day MA of 199.99, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.87 is Neutral, 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
STRL	80 Outperform	$8.91B	31.85	36.72%	―	3.31%	76.94%
PRIM	77 Outperform	$6.33B	26.09	17.01%	0.26%	15.08%	55.10%
ROAD	76 Outperform	$6.86B	89.38	10.60%	―	39.18%	1.79%
DY	74 Outperform	$7.44B	28.87	20.65%	―	12.61%	10.33%
GVA	72 Outperform	$4.84B	36.66	15.89%	0.47%	7.18%	77.84%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
FLR	54 Neutral	$6.69B	1.70	102.24%	―	3.62%	943.43%

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.

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.