Dycom (DY) AI Stock Analysis

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Dycom

(NYSE:DY)

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Rating:64Neutral

Price Target:$241.00▲(8.78% Upside)

Action:reiterated

Date:11/05/26

Dycom's overall score of 64 reflects a strong fundamental business facing significant technical headwinds. The company's operational performance is excellent, with record revenues, expanding margins in Building Systems, and a massive $12.2B backlog providing clear forward visibility. The raised guidance and strong cash flow generation underscore a healthy business. However, the stock is in a pronounced downtrend, trading below all key moving averages with deeply oversold momentum indicators, which heavily weights on the near-term outlook. The increased balance sheet leverage, while manageable given cash flows, adds a layer of financial risk that tempers the otherwise robust operational story.

Positive Factors

Revenue and Margin ExpansionSustained revenue growth alongside expanding EBIT and net margins indicates improving operating execution and earnings quality. A larger revenue base with stronger profitability can enhance Dycom’s ability to fund expansion, absorb cost pressure, and reinforce its position in communications infrastructure services over the next several quarters.

Negative Factors

Higher Financial LeverageThe sharp increase in debt raises Dycom’s financial risk and reduces flexibility if infrastructure spending or project execution weakens. Higher leverage can increase financing burdens, constrain capital allocation, and make the company more sensitive to operating volatility even while profitability remains solid.

Dycom (DY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $6.68B
Dividend Yield: ―
Average Volume (3M): 662.04K
Price to Earnings (P/E): 20.0
Beta (1Y): 1.04
Revenue Growth: 37.79%
EPS Growth: 23.60%
Country: US
Employees: 19,556
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Dycom Business Overview & Revenue Model

Company Description

Dycom Industries, Inc. provides specialty contracting services to the digital infrastructure, telecommunications infrastructure, and utility industries in the United States. It operates through Communications and Building Systems segments. The compan...

How the Company Makes Money

Dycom makes money primarily by performing contracted infrastructure and field services for communications and utility-related customers, generating revenue as projects are delivered under service agreements and construction/installation contracts. It...

Dycom Earnings Call Summary

Earnings Call Date:Aug 26, 2026(Q2-2027)|% Change Since:-37.03%|Next Earnings Date:Nov 24, 2026

Earnings Call SentimentPositive

The call presents a strongly positive operational and financial performance: record revenue, substantial EBITDA and EPS growth, robust backlog, strategic acquisitions, improved cash flow and raised guidance. Offsetting near-term headwinds include Communications margin pressure driven by investments and a $150 million wireless revenue deferral into FY2028, craft labor constraints that may limit near-term capacity, fuel and benefit cost pressures, and timing uncertainty around BEAD-related construction. On balance, the highlights — particularly large revenue and profitability gains, backlog strength and improved cash generation — meaningfully outweigh the lowlights, which are largely timing, investment-driven, or related to industry-wide labor and cost constraints.

Positive Updates

Record Quarterly Revenue

Total contract revenues of $2.01 billion in Q2, a 45.6% year-over-year increase and 16.7% organic growth, representing record quarterly revenue for the company.

Negative Updates

Communications Margin Pressure

Communications adjusted EBITDA margin declined to 13.6% of segment revenue, decreasing ~134 basis points year-over-year due to scaling investments, the wireless revenue deferral and ~35 basis points of fuel cost pressure.

Company Guidance

Dycom raised full‑year contract revenue guidance to $7.48–7.66 billion (midpoint implying +36.5% total revenue growth and +11.3% organic growth YoY), with Communications now expected at $5.90–6.01 billion (including a ~ $150 million wireless revenue deferral into FY2028) and Building Systems at $1.58–1.65 billion (including ~ $90 million of NTI revenues in H2); Q3 guidance is $1.90–1.98 billion of revenues, $281–302 million of adjusted EBITDA and $4.33–4.79 adjusted diluted EPS. The company still expects consolidated adjusted EBITDA margin to increase year‑over‑year (Communications margin modestly down; Building Systems margin in the high‑teens to low‑20s), finished Q2 with record backlog of $12.2 billion (Communications $10.98B, Building Systems $1.26B; $6.47B expected to convert in 12 months), and noted pro forma net leverage of ~2.3x adjusted EBITDA, cash of $340.1 million, total liquidity > $1.086 billion, DSOs of 101 days (‑7 days YoY) and a new $150 million share repurchase authorization through February 2028.

Dycom Financial Statement Overview

Summary

Dycom's financial performance is a tale of strong operational execution offset by increased balance sheet risk. Revenue growth is robust and cash flow generation is excellent, with operating cash flow reaching $718M TTM. However, the debt-to-equity ratio has spiked to 1.58, significantly increasing financial leverage. The score reflects a balance between high-quality earnings and heightened financial risk.

Income Statement

78Positive

Balance Sheet

55Neutral

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	6.88B	5.55B	4.70B	4.18B	3.81B	3.13B
Gross Profit	1.30B	1.14B	733.57M	650.67M	504.02M	343.99M
EBITDA	1.17B	703.95M	567.36M	507.69M	364.92M	238.59M
Net Income	329.58M	281.19M	233.41M	218.92M	142.21M	48.57M
Balance Sheet
Total Assets	6.54B	5.98B	2.95B	2.52B	2.31B	2.12B
Cash, Cash Equivalents and Short-Term Investments	340.08M	709.16M	104.00M	121.30M	243.83M	310.76M
Total Debt	3.05B	2.99B	1.06B	885.04M	892.02M	901.91M
Total Liabilities	4.48B	4.12B	1.71B	1.46B	1.44B	1.36B
Stockholders Equity	2.06B	1.86B	1.24B	1.05B	868.75M	758.54M
Cash Flow
Free Cash Flow	468.67M	401.71M	98.64M	40.48M	-36.17M	151.61M
Operating Cash Flow	718.11M	642.50M	349.10M	258.98M	164.79M	308.65M
Investing Cash Flow	-2.10B	-1.84B	-395.20M	-306.16M	-183.93M	-151.68M
Financing Cash Flow	1.69B	1.81B	37.69M	-75.91M	-67.43M	142.01M

Dycom Technical Analysis

Technical Analysis SentimentNegative

Last Price221.54

Price Trends

50DMA258.16Negative

100DMA331.16Negative

200DMA371.44Negative

Market Momentum

MACD-12.72Negative

RSI42.00Neutral

STOCH81.58Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DY, the sentiment is Negative. The current price of 221.54 is below the 20-day moving average (MA) of 226.44, below the 50-day MA of 258.16, and below the 200-day MA of 371.44, indicating a bearish trend. The MACD of -12.72 indicates Negative momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

3 New Risks

1.Cybersecurity GovernanceQ4, 2025

2.Our pending acquisition of Power Solutions may create incremental business and regulatory risks.Q3, 2025

3.Our business is dependent on keeping pace with technological developments impacting our services and those of our customers.Q4, 2024

Dycom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECG	70Outperform	$4.45B	15.06	39.18%	―	33.47%	59.77%
MTZ	69Neutral	$14.86B	29.58	13.99%	―	25.66%	45.34%
MYRG	69Neutral	$4.34B	22.00	26.32%	―	22.78%	99.70%
PWR	69Neutral	$91.33B	53.85	17.75%	0.07%	37.13%	63.37%
DY	64Neutral	$6.79B	19.98	18.05%	―	37.79%	23.60%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PRIM	58Neutral	$3.76B	38.72	5.90%	0.46%	-5.37%	-65.14%

* Industrials Sector Average

Performance Comparison

DY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DY	Dycom Industries	221.54	-72.23	-24.59%
MTZ	MasTec Inc	182.78	-10.61	-5.49%
MYRG	MYR Group Inc	273.09	52.87	24.01%
PRIM	Primoris Services	69.30	-47.48	-40.66%
PWR	Quanta Services	602.01	175.47	41.14%
ECG	Everus Construction Group, Inc.	85.25	-1.78	-2.05%

Dycom Corporate Events

Executive/Board Changes

Dycom Announces Routine Board Change After Director Resignation

Neutral

Aug 25, 2026

On August 25, 2026, Dycom Industries, Inc. announced that Jennifer Fritzsche resigned from its Board of Directors, effective the same day. Her departure reduced the size of the board from eleven to ten members and was explicitly stated not to stem fr...

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.

Date of analysis: Nov 05, 2026

Dycom AI Stock Analysis