One-glance verdict
Within fair range
$186.68 our estimate vs market $287.38
Wall Street consensus: $520.36 (178.7% higher than our fair-value estimate)
54% above our estimate
Fundamentals snapshot
Dycom Industries, Inc.
DY · NYQ · Industrials · Engineering & Construction
Current price
$287.38
52-week range
$260.10 - $566.47
Market cap
$8.67B
Balance sheet
Stretched
6.39x Adequate
Net debt $2.70B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 24.1% last year.
- Reward Returns 19.2% on equity, ahead of 50% of its peers.
- Risk Net debt grew 241.8% over 3 years.
- Risk Stock trades 7.9% above its 5-year average P/E.
What this company does
Dycom Industries, Inc.
Dycom Industries is a specialty construction company that builds and maintains the physical networks for major telecommunication and utility companies across the United States. They earn money by handling the hands-on work of laying fiber optic cables, building cell towers, and installing the equipment needed for things like 5G internet. This is important because as demand for faster and more reliable digital connections grows, Dycom is one of the key companies doing the physical construction to upgrade America's infrastructure.
How the company got here
Founded in 1969, Dycom started as a specialty contracting company and grew over decades by acquiring other regional contractors. A key turning point was in the 1980s and 1990s when the telecommunications industry began switching from copper wires to fiber optic cables for faster internet and data transmission. Dycom specialized in this area, positioning itself as a crucial partner for large phone and cable companies. This focus on building the physical infrastructure for communications has allowed it to grow into a nationwide provider of these essential services.
What it actually does
Think of Dycom as the construction crew for the internet and other utilities. When a company like a major telecom or cable provider wants to expand its network, install new fiber optic lines for faster internet, or put up cell towers, they hire Dycom's skilled workers to do the physical labor. This includes everything from planning the route and getting permits to digging trenches for underground cables, stringing wires on poles, and even connecting the final lines to homes and businesses. They don't sell internet service themselves; they build and maintain the networks that other companies use to provide that service to you.
Communications
This is Dycom's largest and original line of business, making up the vast majority of its revenue. It serves big telecommunications and cable companies by building, upgrading, and maintaining their networks. This involves engineering and design, placing fiber optic and other cables both underground and on poles, and constructing infrastructure for wireless and 5G services. Essentially, when you see crews working on the infrastructure that brings internet and phone service to a neighborhood, there's a good chance it's a company like Dycom doing the work.
Building Systems
This is a newer and rapidly growing part of Dycom's business, created through recent acquisitions. This segment focuses on the specialized electrical and low-voltage wiring needed inside large, complex buildings, particularly data centers. As the demand for cloud computing and artificial intelligence (AI) grows, more data centers are being built, and they require sophisticated internal infrastructure that this division provides. This business line now accounts for a significant slice of the company's total revenue.
What management is betting on now
Management is focused on capitalizing on the massive nationwide push to expand high-speed internet access, particularly through fiber optic cables. This includes work funded by government programs designed to bring better internet to rural areas and the ongoing need for telecom companies to upgrade their networks for things like 5G. The company is also strategically expanding its services for the booming data center industry, recognizing the growing need for the specialized infrastructure that powers AI and cloud computing. A key priority is to be a one-stop shop for their major customers, handling everything from initial design to final installation and maintenance.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$259.73M
FY2026 Q1
$-133.47M
FY2026 Q2
$5.75M
FY2026 Q3
$164.81M
FY2026 Q4
$364.61M
FY2027 Q2
$-94.90M
FY2027 Q3
$34.15M
Revenue
$2.01B
Net income
$115.64M
Diluted EPS
3.81
Operating cash flow
$103.67M
Free cash flow
$34.15M
Fetching…
Sources
Revenue
$1.96B
Net income
$91.29M
Diluted EPS
3.00
Operating cash flow
$-24.59M
Free cash flow
$-94.90M
Fetching…
Sources
Revenue
$1.46B
Net income
$16.29M
Diluted EPS
0.51
Operating cash flow
$419.00M
Free cash flow
$364.61M
Fetching…
Sources
Revenue
$1.45B
Net income
$106.36M
Diluted EPS
3.63
Operating cash flow
$220.03M
Free cash flow
$164.81M
Fetching…
Sources
Revenue
$1.38B
Net income
$97.48M
Diluted EPS
3.33
Operating cash flow
$57.44M
Free cash flow
$5.75M
Fetching…
Sources
Revenue
$1.26B
Net income
$61.05M
Diluted EPS
2.09
Operating cash flow
$-53.97M
Free cash flow
$-133.47M
Fetching…
Sources
Revenue
$1.08B
Net income
$32.67M
Diluted EPS
1.11
Operating cash flow
$328.22M
Free cash flow
$259.73M
Fetching…
Sources
Is it cheap or expensive?
Fair value $186.68 vs current price $287.38
Wall Street consensus is the average analyst price target: $520.36 (178.7% higher than our fair-value estimate).
Our most-likely fair value is $186.68 a share — about 35.0% away from today's price of $287.38, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $2.7B. Interest coverage 6.4x.
Net debt
$2.70B
Interest coverage
6.39x
Dycom Industries, Inc.'s profit covers its interest bill about 6.4 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
DY
BASELINE
Dycom Industries, Inc.
Total debt $3.05B Interest coverage 6.39x This is the baseline the peer rows are being compared against.
Total debt $3.24B Interest coverage 3.77x -41% vs DY Carries about 1.7x less debt cushion than DY.
Total debt $6.60B Interest coverage 6.07x -5% vs DY Has roughly the same debt cushion as DY.
Total debt $1.28B Interest coverage 14.42x +126% vs DY Carries about 2.3x more debt cushion than DY.
Total debt $67.10M Interest coverage 28.79x +351% vs DY Carries about 4.5x more debt cushion than DY.
Total debt $548.03M Interest coverage 130.49x +1,942% vs DY Carries about 20.4x more debt cushion than DY.
What you should know
The case for and against DY
3 Rewards
2 Risks
Rewards
-
Revenue grew 24.1% last year.
-
Returns 19.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 241.8% over 3 years.
-
Stock trades 7.9% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.24x
Forward P/E
13.90x
P/B
4.20x
P/S
1.26x
EV/EBITDA
12.19x
PEG ratio
3.50x
Profitability
How much profit each dollar creates
Gross margin
20.5%
Operating margin
9.6%
Net margin
4.8%
ROE
19.2%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.48x
Current ratio
2.35x
Quick ratio
2.21x
Total debt
$3.05B
Total cash
$351.75M
Growth
How the business has been compounding
Revenue TTM
$6.88B
Revenue 5Y CAGR
51.9%
EPS TTM
10.95
EPS 5Y CAGR
26.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$718.11M
Free CF TTM
$401.71M
FCF margin
5.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—