Dycom (DY) AI Stock Analysis

• Market Cap: $7.40B
• Dividend Yield: N/A
• Average Volume (3M): 430.79K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.04
• Revenue Growth: 12.61%
• EPS Growth: 10.33%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.33
• Shares Outstanding: 28,954,102
• 10 Day Avg. Volume: 342,780
• 30 Day Avg. Volume: 430,786
• 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: 1.20
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 13.96
• 1Y Price Target: $294.29
• Price Target Upside: 12.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: $287.00 ▲(9.72% Upside)

Dycom's overall stock score is driven by strong financial performance and a highly positive earnings call, which highlight robust growth prospects and strategic opportunities. Technical analysis and valuation present moderate risks, with the stock trading at a premium and showing mild bearish momentum.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Dycom's services, driven by expanding digital infrastructure needs, which supports long-term business sustainability.

Backlog Increase

A growing backlog provides visibility into future revenue streams, ensuring steady cash flows and supporting strategic planning and investment in growth opportunities.

Opportunities in AI and Data Center Market

The potential in AI and data center markets represents a substantial growth opportunity, aligning with industry trends towards increased data processing and connectivity needs.

Negative Factors

Revenue Guidance at Lower End

Meeting the lower end of revenue guidance may indicate challenges in project execution or demand fluctuations, which could impact future growth expectations.

Equity Ratio Concerns

A moderate equity ratio indicates potential vulnerability to financial stress, necessitating prudent asset management to maintain financial stability.

Free Cash Flow Conversion

Inefficient conversion of earnings to free cash flow can limit the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

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 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: Positive
• Last Price: 261.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 261.57 is above the 20-day moving average (MA) of 254.96, above the 50-day MA of 260.46, and above the 200-day MA of 204.73, indicating a bullish trend. The MACD of -1.02 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 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
DY	77 Outperform	$7.40B	28.73	20.65%	―	12.61%	10.33%
PRIM	77 Outperform	6.59B	27.35	12.83%	0.25%	15.08%	55.10%
IESC	76 Outperform	7.10B	29.06	34.21%	―	17.83%	34.73%
MTZ	73 Outperform	15.26B	57.38	9.01%	―	7.08%	3273.27%
KBR	72 Outperform	6.29B	16.45	24.55%	1.32%	12.59%	98.20%
FLR	54 Neutral	6.52B	1.66	69.52%	―	3.62%	943.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%