Dycom Industries (DY)
NYSE:DY
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Dycom
(NYSE:DY)
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Rating:66Neutral
Price Target:
$444.00
▲(11.15% Upside)
Action:Reiterated
Date:03/25/26
The score is primarily supported by strong operating performance (revenue growth and margin expansion) and a positive earnings-call outlook with record backlog and upbeat FY2027 guidance. It is held back by the sharp increase in leverage and still-uneven cash conversion, while technical indicators and a high P/E reduce near-term attractiveness.
Positive Factors
Record backlog and demand visibility
A ~$9.5B backlog with roughly $6.3B expected to convert in 12 months provides durable revenue visibility, enabling multi-quarter planning of crews and capital. This reduces revenue cyclicality, supports steady utilization, and underpins near-term organic growth and margin scalability as projects convert.
Negative Factors
Material rise in leverage
A sharp increase in total debt and higher debt‑to‑equity materially reduces financial flexibility. Elevated leverage heightens refinancing and covenant risk, constrains capacity for opportunistic investment, and raises sensitivity to revenue shocks or project delays over the next 2–6 months as the company executes deleveraging plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and demand visibility
A ~$9.5B backlog with roughly $6.3B expected to convert in 12 months provides durable revenue visibility, enabling multi-quarter planning of crews and capital. This reduces revenue cyclicality, supports steady utilization, and underpins near-term organic growth and margin scalability as projects convert.
Read all positive factors
Dycom (DY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.44B
Dividend YieldN/A
Average Volume (3M)402.18K
Price to Earnings (P/E)162.5
Beta (1Y)1.04
Revenue Growth17.95%
EPS Growth21.09%
CountryUS
Employees15,623
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)9.68
Shares Outstanding30,018,599
10 Day Avg. Volume357,408
30 Day Avg. Volume402,179
Financial Highlights & Ratios
PEG Ratio1.82
Price to Book (P/B)5.69
Price to Sales (P/S)1.91
P/FCF Ratio26.36
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue2.64
Enterprise Value/Gross Profit12.83
Enterprise Value/Ebitda15.17
Forecast
1Y Price Target
$465.50Price Target Upside16.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)14.26
Revenue Forecast (FY)$7.06B
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; ...
How the Company Makes Money
Dycom makes money primarily by performing contracted services for telecommunications carriers, cable multiple-system operators, and other network/infrastructure owners, earning revenue as projects are executed. Its key revenue streams are (1) cons...
Dycom Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
Overall the call was positive: management reported record quarterly and annual revenue, meaningful margin expansion, strong free cash flow improvement, a record backlog and constructive FY2027 guidance. Strategic progress was highlighted by the Power Solutions acquisition and clear positioning within fiber-to-the-home, hyperscaler long-haul/middle-mile, and BEAD opportunities. Near-term challenges include margin pressure from workforce ramp and winter weather, timing and funding uncertainty around BEAD, a projected $100M decline in wireless equipment replacement revenue next year, elevated acquisition-related leverage and transaction costs. Despite these headwinds management provided a clear deleveraging plan, continued margin expansion targets, and investments (training facility, workforce) to capture secular tailwinds, which leaves the overall tone constructive and growth-oriented.Positive Updates
Record Quarterly Revenue and Strong Organic Growth
Q4 record consolidated revenue of ~$1.46B, up 34.4% year-over-year; organic revenue for the quarter increased 16.6%, underscoring strong backlog conversion and demand momentum.
Negative Updates
Short-Term Margin Pressure from Weather and Workforce Additions
Q4 margin impact from substantial workforce additions and severe winter storms; management acknowledged some margin dilution as new hires ramp and weather disrupted productivity.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Organic Growth
Q4 record consolidated revenue of ~$1.46B, up 34.4% year-over-year; organic revenue for the quarter increased 16.6%, underscoring strong backlog conversion and demand momentum.
Read all positive updates
Company Guidance
Dycom provided fiscal 2027 guidance calling for total contract revenues of $6.85 billion to $7.15 billion (≈23.6%–29% year‑over‑year growth, or ~6.6%–10.3% organic), with Communications revenues of $5.7 billion to $5.9 billion (vs. $5.35 billion FY26 ex‑extra week) and Building Systems revenues of $1.15 billion to $1.25 billion; the company expects continued adjusted EBITDA margin expansion (modest segment margin gains in Communications and mid‑teens adjusted EBITDA segment margin in Building Systems) and indicated a ~$100 million decline in wireless equipment replacement revenue in FY27. For Q1 FY27 Dycom guided contract revenues of $1.64 billion to $1.71 billion, adjusted EBITDA of $200 million to $220 million, and adjusted diluted EPS of $2.57 to $2.90 (ex‑intangible amortization). Capital expenditures, net of disposals, are expected to be $210 million to $220 million for FY27, and management reiterated confidence BEAD and long‑haul/middle‑mile opportunities will begin to contribute (first BEAD revenues anticipated in Q2), supported by a record year‑end backlog of ~$9.54 billion (≈$6.36 billion expected to convert within 12 months). Financial flexibility targets include pro forma net leverage of ~2.3x adjusted EBITDA at quarter end with a plan to delever to ~2.0x over the next 12 months, cash of $709.2 million and total liquidity of $1.46 billion.Dycom Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
71
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.55B | 4.70B | 4.18B | 3.81B | 3.13B |
| Gross Profit | 1.14B | 733.57M | 650.67M | 504.02M | 343.99M |
| EBITDA | 964.20M | 567.36M | 507.69M | 396.99M | 270.43M |
| Net Income | 281.19M | 233.41M | 218.92M | 142.21M | 48.57M |
Balance Sheet | |||||
| Total Assets | 5.98B | 2.95B | 2.52B | 2.31B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 709.16M | 104.00M | 121.30M | 243.83M | 310.76M |
| Total Debt | 2.99B | 1.06B | 885.04M | 892.02M | 901.91M |
| Total Liabilities | 4.12B | 1.71B | 1.46B | 1.44B | 1.36B |
| Stockholders Equity | 1.86B | 1.24B | 1.05B | 868.75M | 758.54M |
Cash Flow | |||||
| Free Cash Flow | 401.71M | 98.64M | 40.48M | -36.17M | 151.61M |
| Operating Cash Flow | 642.50M | 349.10M | 258.98M | 164.79M | 308.65M |
| Investing Cash Flow | -1.84B | -395.20M | -306.16M | -183.93M | -151.68M |
| Financing Cash Flow | 1.81B | 37.69M | -75.91M | -67.43M | 142.01M |
Dycom Technical Analysis
Neutral
399.45
Price Trends
392.55
Positive
387.16
Positive
341.53
Positive
Market Momentum
5.19
Positive
47.61
Neutral
25.73
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 399.45 is below the 20-day moving average (MA) of 426.07, above the 50-day MA of 392.55, and above the 200-day MA of 341.53, indicating a neutral trend. The MACD of 5.19 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DY.
Dycom Risk Analysis
Dycom disclosed 1 risk factors in its most recent earnings report. Dycom reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $13.14B | 21.58 | 41.14% | ― | 16.16% | 62.83% | |
72 Outperform | $30.19B | 90.00 | 14.53% | ― | 22.59% | 111.23% | |
66 Neutral | $12.44B | 162.45 | 18.81% | ― | 17.95% | 21.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $4.24B | 11.84 | 26.57% | 1.65% | -3.61% | 10.17% | |
58 Neutral | $5.97B | 111.18 | 15.21% | 0.25% | 13.40% | 19.67% | |
45 Neutral | $6.23B | 12.34 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
DY
Dycom
411.20
186.00
82.59%
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Dycom Corporate Events
Business Operations and StrategyExecutive/Board Changes
Dycom Adds Veteran Tech Leader to Board of Directors
Positive
Mar 24, 2026
On March 24, 2026, Dycom Industries, Inc. appointed veteran technology executive Raejeanne Skillern to its Board of Directors and expanded the board size from ten to eleven members. The board determined she is independent under New York Stock Exch...
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.