Dycom Industries (DY)
NYSE:DY
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Dycom
(NYSE:DY)
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Rating:73Outperform
Price Target:
$569.00
▲(42.45% Upside)
Action:Reiterated
Date:06/01/26
The score is driven primarily by improving fundamentals and a very strong earnings outlook (raised guidance and record backlog), supported by strong bullish technicals. These positives are tempered by elevated leverage risk on the balance sheet and a high P/E valuation that reduces downside protection.
Positive Factors
Revenue & Margin Recovery
Dycom has delivered a multi-year earnings recovery with materially higher operating margins versus 2022. This sustained margin expansion reflects improving project execution and pricing power on network build work, supporting durable profitability even as project mixes shift over time.
Negative Factors
Elevated Leverage
Leverage has risen materially, reducing financial flexibility and magnifying downside if project margins or customer spending weaken. Higher debt limits capacity for opportunistic investment and raises refinancing and covenant risk during cyclical slowdowns in telecom capex cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Recovery
Dycom has delivered a multi-year earnings recovery with materially higher operating margins versus 2022. This sustained margin expansion reflects improving project execution and pricing power on network build work, supporting durable profitability even as project mixes shift over time.
Read all positive factors
Dycom (DY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.67B
Dividend YieldN/A
Average Volume (3M)503.66K
Price to Earnings (P/E)44.9
Beta (1Y)1.15
Revenue Growth29.76%
EPS Growth33.40%
CountryUS
Employees15,623
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)10.62
Shares Outstanding30,031,454
10 Day Avg. Volume717,793
30 Day Avg. Volume503,659
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 Cap1.21
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit14.49
Enterprise Value/Ebitda16.63
Forecast
1Y Price Target
$641.11Price Target Upside60.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)16.21
Revenue Forecast (FY)$7.53B
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 by performing contracted services for telecommunications and utility customers and recognizing revenue as it delivers those services under project- and program-based agreements. Its core revenue streams generally come from (1) te...
Dycom Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum with robust top-line growth, margin expansion, record backlog, upgraded guidance, strategic M&A, and improved working capital and liquidity. Management acknowledged some near-term risks including cost inflation (notably fuel), reliance on favorable seasonal timing for part of the quarter's outperformance, skilled labor constraints, and the multi-year nature of certain large opportunities. Non-operating tax benefits also contributed to adjusted results. On balance, the positive execution, sizable backlog, upgraded outlook, and strategic acquisition opportunities materially outweigh the highlighted risks.Positive Updates
Revenue Outperformance
Total revenues of $1.965 billion in Q1 FY27 exceeded the high end of expectations and increased 56% year over year (YoY), including organic growth of ~25%.
Negative Updates
Exposure to Cost Inflation (Fuel)
Management acknowledged recent rapid increases in fuel costs that impact field operations; while fleet actions have mitigated some exposure, fuel and other input cost inflation remain a risk and are being monitored and modeled into guidance.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Outperformance
Total revenues of $1.965 billion in Q1 FY27 exceeded the high end of expectations and increased 56% year over year (YoY), including organic growth of ~25%.
Read all positive updates
Company Guidance
Dycom raised fiscal 2027 guidance to total contract revenues of $7.38 billion to $7.65 billion (midpoint implying ~38% total growth and ~14% organic growth ex last year’s extra week), with Communications contract revenues guided to $6.03 billion–$6.20 billion (≈12.6%–15.8% organic growth) and Building Systems to $1.35 billion–$1.45 billion; on a quarterly basis Q2 contract revenues are expected to be $1.94 billion–$2.01 billion with adjusted EBITDA of $284 million–$303 million and adjusted diluted EPS of $4.40–$4.82 (excluding intangible amortization). Management expects Communications to deliver modest EBITDA margin expansion and Building Systems to sustain high‑teens adjusted EBITDA margins (Q1 Building Systems margin was 17.7%), the outlook excludes the pending National Technology Integrators (NTI) acquisition (NTI: ~ $175M initial annual revenue run‑rate, mid‑to‑high‑teens historical adjusted EBITDA margins; $275M purchase price cash‑free/debt‑free; ~$234M cash + ~$41M stock; expected to close in Q2), pro forma net leverage is expected to be below 2.5x (current pro forma ~2.3x), and liquidity remains strong with $538.8M cash and >$1.28B total liquidity (Q1 also included a $36M share repurchase of ~100k shares at ~$360/share).Dycom Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
54
Neutral
Cash Flow
73
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.25B | 5.55B | 4.70B | 4.18B | 3.81B | 3.13B |
| Gross Profit | 1.23B | 1.14B | 733.57M | 650.67M | 504.02M | 343.99M |
| EBITDA | 1.07B | 964.20M | 567.36M | 507.69M | 396.99M | 270.43M |
| Net Income | 311.43M | 281.19M | 233.41M | 218.92M | 142.21M | 48.57M |
Balance Sheet | ||||||
| Total Assets | 6.18B | 5.98B | 2.95B | 2.52B | 2.31B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 538.83M | 709.16M | 104.00M | 121.30M | 243.83M | 310.76M |
| Total Debt | 3.00B | 2.99B | 1.06B | 885.04M | 892.02M | 901.91M |
| Total Liabilities | 4.28B | 4.12B | 1.71B | 1.46B | 1.44B | 1.36B |
| Stockholders Equity | 1.90B | 1.86B | 1.24B | 1.05B | 868.75M | 758.54M |
Cash Flow | ||||||
| Free Cash Flow | 440.28M | 401.71M | 98.64M | 40.48M | -36.17M | 151.61M |
| Operating Cash Flow | 671.88M | 642.50M | 349.10M | 258.98M | 164.79M | 308.65M |
| Investing Cash Flow | -1.85B | -1.84B | -395.20M | -306.16M | -183.93M | -151.68M |
| Financing Cash Flow | 1.70B | 1.81B | 37.69M | -75.91M | -67.43M | 142.01M |
Dycom Technical Analysis
Positive
399.45
Price Trends
417.52
Positive
400.23
Positive
351.27
Positive
Market Momentum
20.05
Negative
53.86
Neutral
44.94
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 399.45 is below the 20-day moving average (MA) of 455.34, below the 50-day MA of 417.52, and above the 200-day MA of 351.27, indicating a bullish trend. The MACD of 20.05 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 44.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $14.79B | 37.75 | 41.14% | ― | 16.16% | 62.83% | |
73 Outperform | $14.67B | 44.88 | 18.85% | ― | 29.76% | 33.40% | |
72 Outperform | $29.61B | 61.82 | 14.53% | ― | 22.59% | 111.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $4.58B | 11.26 | 26.57% | 1.65% | -3.61% | 10.17% | |
58 Neutral | $6.92B | 26.56 | 15.21% | 0.25% | 13.40% | 19.67% | |
50 Neutral | $7.04B | 23.00 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
DY
Dycom
466.28
223.26
91.87%
FLR
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47.56
3.13
7.04%
IESC
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KBR
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35.56
-17.23
-32.63%
MTZ
MasTec
363.89
200.19
122.29%
PRIM
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121.84
46.14
60.94%
Dycom Corporate Events
Executive/Board ChangesShareholder Meetings
Dycom Announces Board Transitions and Shareholder Meeting Results
Positive
Jun 1, 2026
At its May 28, 2026 annual meeting, Dycom Industries implemented board changes required by its tenure and mandatory retirement policy, as directors Laurie J. Thomsen and Luis Avila-Marco retired at the conclusion of the meeting, reducing the board...
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.