Dycom (DY) AI Stock Analysis

• Market Cap: $10.85B
• Dividend Yield: N/A
• Average Volume (3M): 443.63K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 1.00
• Revenue Growth: 13.19%
• EPS Growth: 33.58%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.63
• Shares Outstanding: 28,956,050
• 10 Day Avg. Volume: 301,039
• 30 Day Avg. Volume: 443,635
• PEG Ratio: 3.20
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 56.92
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 13.81
• Enterprise Value/Ebitda: 16.72
• 1Y Price Target: $406.78
• Price Target Upside: 9.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 11.07
• Revenue Forecast (FY): $5.41B

• Rating: 83 Outperform
• Price Target: $435.00 ▲(17.57% Upside)

The score is driven by strong financial performance and a very positive earnings update (record results, raised outlook, and strong backlog), supported by bullish technicals. These positives are partially offset by a relatively high valuation (P/E 36.76) and limited valuation support given the lack of dividend yield data.

Positive Factors

Sustained revenue and margin improvement

Record revenue and higher adjusted EBITDA margin indicate durable operational improvements and scale in core services. Margin expansion strengthens cash generation, funds reinvestment in equipment and labor, and supports competitive bids across network construction cycles over the next several quarters.

Very large backlog and contract visibility

An $8.2B backlog plus new $500M service agreements provide multi-period revenue visibility, smoothing project timing risk. This underpins capacity planning, stable utilization of skilled crews, and predictable cash flows, supporting sustainable growth and margin maintenance.

Strategic acquisition expands data-center capabilities

Adding Power Solutions gives Dycom a direct presence in data-center electrical contracting, diversifying revenue toward higher-growth digital infrastructure. The acquisition broadens serviceable addressable market, enables cross‑sell opportunities, and can sustainably raise aggregate margins if integration preserves standalone margins.

Negative Factors

Higher leverage and new amortization profile

Acquisition-driven financing increases scheduled amortization and interest exposure, tightening near-term liquidity cushions. Elevated gross debt and new repayment cadence reduce financial flexibility, making the company more sensitive to cash-flow volatility and refinancing conditions over the medium term.

Material acquisition poses integration risk

A large, transformational purchase requires successful operational and cultural integration to realize projected accretion. Execution shortfalls in aligning backlog, systems, or management could erode expected margin and free-cash-flow benefits and delay the timeline to targeted net leverage reductions.

Extended receivable cycle (working capital strain)

DSOs around 105 days reflect long cash conversion cycles inherent to project contracting. Persistently extended receivables increase working-capital needs and financing costs, constraining free cash flow availability for debt repayment or capex unless collection efficiency improves materially.

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 service providers for the construction and maintenance of communication infrastructure. The company earns money by providing specialized labor and equipment needed for network construction projects, as well as ongoing maintenance services. Key revenue streams include project-based contracts, where Dycom is compensated based on the completion of specific tasks or milestones, and service agreements for ongoing maintenance. Additionally, Dycom benefits from long-term relationships with major clients, which provide a steady flow of work. Strategic partnerships with telecom giants also contribute to the company's earnings, as these collaborations can lead to significant contracts for large-scale network deployments.

Dycom Financial Statement Overview

Summary

Strong overall fundamentals: improving profitability (net margin up to 5.75% TTM), solid operating efficiency trends (EBIT/EBITDA margins improving), and robust free cash flow growth (FCF up 140.88% TTM). Leverage appears manageable (debt-to-equity 0.72) with strong ROE (22.21%), though debt should be monitored.

Income Statement

Dycom has demonstrated strong revenue growth with a TTM increase of 3.6% and consistent profitability improvements. The gross profit margin is stable at around 19.5%, and the net profit margin has improved to 5.75% in the TTM, indicating effective cost management. EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.72 in the TTM, indicating manageable leverage. Return on equity has improved to 22.21%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Dycom's cash flow performance is robust, with a significant free cash flow growth of 140.88% in the TTM. The operating cash flow to net income ratio is healthy at 0.61, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.31 suggests good cash conversion, supporting future investments and debt repayments.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.70B	4.18B	3.81B	3.13B	3.20B
Gross Profit	733.57M	650.67M	504.02M	343.99M	381.28M
EBITDA	567.36M	507.69M	396.99M	270.43M	296.61M
Net Income	233.41M	218.92M	142.21M	48.57M	34.34M
Balance Sheet
Total Assets	2.95B	2.52B	2.31B	2.12B	1.94B
Cash, Cash Equivalents and Short-Term Investments	104.00M	121.30M	243.83M	310.76M	11.77M
Total Debt	1.06B	885.04M	892.02M	901.91M	646.41M
Total Liabilities	1.71B	1.46B	1.44B	1.36B	1.13B
Stockholders Equity	1.24B	1.05B	868.75M	758.54M	811.31M
Cash Flow
Free Cash Flow	98.64M	40.48M	-36.17M	151.61M	323.73M
Operating Cash Flow	349.10M	258.98M	164.79M	308.65M	381.78M
Investing Cash Flow	-395.20M	-306.16M	-183.93M	-151.68M	-44.63M
Financing Cash Flow	37.69M	-75.91M	-67.43M	142.01M	-383.44M

Dycom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 369.99
• 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 369.99 is above the 20-day moving average (MA) of 358.00, above the 50-day MA of 348.15, and above the 200-day MA of 272.32, indicating a bullish trend. The MACD of 8.61 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 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	83 Outperform	$10.85B	36.43	21.90%	―	13.19%	33.58%
IESC	76 Outperform	$9.50B	31.62	40.54%	―	16.89%	54.13%
PRIM	75 Outperform	$8.21B	30.02	18.56%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.48B	14.02	27.77%	1.65%	9.66%	29.01%
MTZ	66 Neutral	$19.61B	58.19	11.18%	―	12.99%	274.10%
FLR	64 Neutral	$7.41B	2.38	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Dycom Corporate Events

Dycom Establishes New $800 Million Term Loan Facility

On January 27, 2026, Dycom Industries, Inc. amended its existing credit arrangements by entering into a First Amendment to its Third Amended and Restated Credit Agreement, establishing a new $800 million senior secured Term Loan B facility. The proceeds were used to refinance a $600 million 364-day senior secured bridge loan, cover related fees and expenses, and add cash to the company’s balance sheet, potentially strengthening its liquidity and capital structure. The Term Loan B bears interest at term SOFR or a base rate plus specified margins and will begin amortizing at a rate of 0.25% on September 15, 2026, with quarterly payments thereafter, setting a clearer schedule for Dycom’s debt repayment obligations.

The most recent analyst rating on (DY) stock is a Buy with a $426.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Completes Power Solutions Acquisition, Expands Credit Facilities

On December 23, 2025, Dycom Industries completed its previously announced acquisition of Power Solutions, LLC, one of the Mid-Atlantic’s largest electrical contractors serving data centers, for approximately $1.63 billion in cash plus about 1.0 million Dycom common shares, on a cash-free, debt-free basis. Power Solutions will continue to operate under its own brand from its Bowie, Maryland headquarters with its existing management team, while the transaction is described as immediately accretive to Dycom’s adjusted EBITDA margin and adjusted diluted EPS (excluding non-cash intangible amortization) and as enhancing free cash flow, reinforcing Dycom’s positioning in fast-growing digital and data center infrastructure services. To finance the deal and strengthen its capital structure, Dycom simultaneously amended and restated its credit agreement, extending debt maturities to December 2030, expanding its revolving credit facility to $800 million, increasing its term loan facility to $1.54 billion and adding a $600 million 364-day senior secured bridge loan, whose proceeds, together with the term loan, refinanced existing borrowings and funded the cash portion of the acquisition.

The most recent analyst rating on (DY) stock is a Buy with a $420.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Announces Planned Board Change with Director Retirement

Dycom Industries, Inc., a specialty contractor serving the telecommunications and utility network sectors, announced that director Luis Avila-Marco has decided not to stand for reelection at the company’s 2026 Annual Meeting of Shareholders and will retire from the Board at that time. The company stated that Avila-Marco’s decision, disclosed on December 18, 2025, was not due to any disagreement over operations, policies, or practices, and it plans to reduce the size of its Board from 10 to 9 members following his retirement, signaling a modest governance adjustment rather than a strategic shift.

The most recent analyst rating on (DY) stock is a Buy with a $392.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Acquires Power Solutions for $1.95 Billion

On November 18, 2025, Dycom Industries, Inc. announced its entry into a Unit Purchase Agreement to acquire Power Solutions, LLC, a premier electrical contractor specializing in data centers, for $1.95 billion. This acquisition is expected to enhance Dycom’s growth in digital and data center infrastructure services, expand its exposure to the rapidly growing data center demand, and improve its financial metrics, including Adjusted EBITDA margin and free cash flow. The transaction is anticipated to close before the end of the fiscal year, subject to customary conditions.

The most recent analyst rating on (DY) stock is a Buy with a $315.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Appoints Stephen LeClair to Board of Directors

On November 10, 2025, Dycom Industries, Inc. announced the appointment of Mr. Stephen O. LeClair to its Board of Directors. Mr. LeClair, who has an extensive background in leadership roles at Core & Main, Inc. and HD Supply, brings significant experience in corporate strategy and growth. His appointment increases the board size from nine to ten members and is effective immediately, with a term extending until the 2026 Annual Meeting of Shareholders. This strategic move is expected to enhance Dycom’s governance and potentially strengthen its market position.

The most recent analyst rating on (DY) stock is a Buy with a $320.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.