Dycom (DY) AI Stock Analysis

• Market Cap: $6.45B
• Dividend Yield: N/A
• Average Volume (3M): 435.79K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.09
• Revenue Growth: 12.77%
• EPS Growth: 1.55%
• Country: US
• Employees: 15,623
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 2.09
• Shares Outstanding: 28,779,139
• 10 Day Avg. Volume: 493,671
• 30 Day Avg. Volume: 435,787
• PEG Ratio: 5.41
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $228.88
• Price Target Upside: 2.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $244.00 ▲( 8.83% Upside)

Dycom's strong earnings performance and strategic market positioning are key strengths, reflected in a high earnings call score. However, technical indicators suggest caution due to overbought conditions, and valuation metrics highlight potential overvaluation. Financial performance is solid, though debt levels and cash flow volatility require monitoring.

Positive Factors

Financial Performance

The company is expected to beat consensus revenue, EBITDA, and EPS by approximately 1-2%, with customer activity starting off solid.

Growth Opportunities

Fiber and AI data center projects are ramping up, which could lead to better-than-expected financial performance.

Stock Buyback

Dycom Industries authorized a new $150 million share repurchase program, signaling confidence in the company's future.

Negative Factors

Guidance Concerns

The guidance for the second quarter might appear conservative and below consensus due to challenging comparisons with key customers.

Market Performance

DY shares initially outperformed peers before reversing gains and ultimately underperforming, possibly due to technical pressure from a short seller report and conservative guidance.

Project Backlog

The estimated project backlog for Dycom Industries fell slightly, indicating potential challenges in securing future projects.

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, cable operators, and utility providers. The company's key revenue streams include engineering and construction services for fiber optic networks, wireless infrastructure installation, and maintenance services for existing telecommunications systems. Dycom benefits from long-term contracts and partnerships with major industry players, which provide a steady flow of projects and recurring revenue. The company is also positioned to capitalize on industry trends such as increased demand for high-speed internet and 5G network deployment, which drive the need for expanded telecommunications infrastructure.

Dycom Financial Statement Overview

Summary

Dycom shows strong revenue growth, robust EBIT margins, and financial stability. However, net income growth is moderate, and rising debt levels require attention.

Income Statement

Dycom exhibits strong revenue growth with a substantial increase from $3.1 billion in 2022 to $4.2 billion in 2024, reflecting a positive trajectory. The company maintains a healthy gross profit margin, although net profit margins indicate room for improvement. The EBIT and EBITDA margins are robust, indicating operational efficiency. However, net income growth appears to be moderate, necessitating careful cost management.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, highlighting manageable leverage levels. Return on equity has improved over time, showcasing enhanced profitability. The equity ratio indicates financial stability, but the total debt has increased significantly, requiring attention to debt servicing.

Cash Flow

Operating cash flow has been consistently positive, supporting business operations, but free cash flow shows volatility due to capital expenditures. The company has demonstrated growth in free cash flow over recent years, enhancing liquidity. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.70B	4.18B	3.81B	3.13B	3.20B
	Gross Profit
932.14M	813.76M	648.20M	496.64M	557.18M
	EBIT
340.54M	486.08M	220.74M	86.00M	130.11M
	EBITDA
567.36M	507.69M	396.99M	234.21M	297.41M
	Net Income Common Stockholders
233.41M	218.92M	142.21M	48.57M	34.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
92.67M	101.09M	224.19M	310.76M	11.77M
	Total Assets
2.95B	2.52B	2.31B	2.12B	1.94B
	Total Debt
1.06B	885.04M	892.02M	901.91M	646.41M
	Net Debt
963.29M	783.95M	667.84M	591.15M	634.64M
	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: 224.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 224.21 is above the 20-day moving average (MA) of 187.35, above the 50-day MA of 167.25, and above the 200-day MA of 178.42, indicating a bullish trend. The MACD of 13.05 indicates Negative momentum. The RSI at 85.90 is Negative, neither overbought nor oversold. The STOCH value of 81.07 is Negative, 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
STRL	76 Outperform	$5.54B	21.31	36.67%	―	4.84%	77.84%
ROAD	75 Outperform	$5.71B	87.36	9.21%	―	31.49%	-0.13%
PRIM	74 Outperform	$4.04B	19.83	15.30%	0.38%	12.45%	42.45%
FLR	73 Outperform	$6.31B	3.63	66.58%	―	7.16%	523.56%
GVA	72 Outperform	$3.81B	38.24	12.75%	0.60%	11.42%	247.33%
DY	68 Neutral	$6.45B	28.43	19.76%	―	12.77%	1.55%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%

Dycom Corporate Events

Dycom Highlights Strong Fiscal 2025 Financial Performance

On May 22, 2025, Dycom Industries released presentation materials on their website, highlighting strong financial performance for fiscal 2025, with a 12.6% increase in contract revenues and a 19.8% rise in adjusted EBITDA. The company attributes its success to meeting growing industry demand and maintaining high-quality service. The presentation also underscores the increasing demand for high-speed connectivity and fiber infrastructure, driven by consumer data usage and significant investments in AI-enabled data centers. State and federal programs are also contributing to broadband expansion, particularly in underserved rural areas, indicating a robust outlook for Dycom’s continued growth.

The most recent analyst rating on (DY) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Reports Strong Q1 2026 Results, Exceeds Guidance

On May 21, 2025, Dycom Industries, Inc. reported strong fiscal 2026 first-quarter results, exceeding guidance on revenue, Adjusted EBITDA, and EPS. The company achieved a 10.2% increase in revenue compared to Q1 2025 and repurchased 200,000 shares for $30.2 million. Dycom’s record backlog of $8.1 billion reflects its confidence in industry drivers and market opportunities. The company plans to increase its revenue expectations for the year, driven by growth in its service and maintenance business and fiber-to-the-home deployments. Dycom’s strategic positioning and ability to handle industry complexities have favored its operations, despite macroeconomic uncertainties.

The most recent analyst rating on (DY) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Dycom stock, see the DY Stock Forecast page.

Dycom Reports Strong Fiscal 2025 Financial Performance

On March 3, 2025, Dycom Industries, Inc. released presentation materials on its website, highlighting its financial performance and strategic initiatives. The company reported strong revenue growth and margin expansion for fiscal 2025, with contract revenues reaching $4.7 billion and adjusted EBITDA at $576 million. Dycom’s success is attributed to its ability to meet growing industry demand and maintain high-quality service. The announcement also emphasized the increasing demand for high-speed connectivity and fiber infrastructure, driven by consumer data usage and government programs supporting broadband expansion. These trends position Dycom favorably in the telecommunications industry, with multiple tailwinds expected to drive sustainable growth.

Dycom Announces Q4 Results and Stock Repurchase Plan

On February 26, 2025, Dycom Industries, Inc. held a webcast and conference call to discuss its fiscal 2025 fourth quarter results, reporting revenues of $1.085 billion and an Adjusted EBITDA of $116.4 million. The company announced a new $150 million stock repurchase program and highlighted its strategic focus on fiber-to-the-home expansion, long-haul fiber infrastructure, and broadband initiatives, positioning itself for continued growth in fiscal 2026 with an expected revenue increase of 10% to 13%.