📊 DY Key Takeaways
Is DY a Good Investment? Thesis Analysis
Dycom demonstrates solid fundamental health with strong revenue growth, healthy free cash flow generation of $401.7M, and improving profitability metrics. The company maintains adequate liquidity and a manageable leverage position, though the extremely high YoY revenue growth of 8438% warrants investigation into one-time items or accounting adjustments that may not be sustainable.
Why Buy DY? Key Strengths
- Strong free cash flow generation ($401.7M) with 7.2% FCF margin demonstrates operational efficiency and cash conversion
- Solid liquidity position with 2.74x current ratio and $709.2M cash on hand provides financial flexibility
- Consistent profitability improvement with 20.5% YoY net income growth and 20.7% EPS growth shows operational scaling
- Operating leverage evident with 6.6% operating margin despite low 2.9% gross margins, indicating cost control
DY Investment Risks to Consider
- Extraordinarily high revenue growth (8438% YoY) is atypical and suggests acquisition, merger, or accounting restatement requiring verification of organic growth
- Thin gross margin of 2.9% indicates low product/service pricing power and vulnerability to cost inflation; typical for construction services but leaves little room for error
- High leverage with 1.51x debt-to-equity ratio and $2.8B long-term debt creates refinancing risk; interest coverage ratio unavailable raises concern about debt servicing capacity
- Capital intensity with $240.8M annual capex suggests ongoing equipment replacement needs that could strain cash flow in economic downturns
Key Metrics to Watch
- Organic revenue growth rate after adjusting for one-time items or acquisitions
- Gross margin trend and sustainability given cyclical construction sector dynamics
- Debt service capacity and interest coverage ratio to assess refinancing risk
- Free cash flow sustainability and capital efficiency under varying contract volumes
DY Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.74x current ratio provides a solid financial cushion.
DY Profitability Ratios
DY vs Industrial Sector
How DYCOM INDUSTRIES INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DY Overvalued or Undervalued?
Based on fundamental analysis, DYCOM INDUSTRIES INC has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DY Balance Sheet & Liquidity
DY 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: DYCOM INDUSTRIES INC's revenue has grown significantly by 66% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.37 reflects profitable operations.
DY Growth Metrics (YoY)
DY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.3B | $69.8M | $2.37 |
| Q2 2026 | $1.2B | $68.4M | $2.32 |
| Q1 2026 | $1.1B | $61.0M | $2.09 |
| Q3 2025 | $1.1B | $69.8M | $2.37 |
| Q2 2025 | $1.0B | $60.2M | $2.03 |
| Q1 2025 | $1.0B | $51.5M | $1.73 |
| Q3 2024 | $1.0B | $54.0M | $1.80 |
| Q2 2024 | $972.3M | $43.9M | $1.46 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DY Capital Allocation
DY SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for DYCOM INDUSTRIES INC (CIK: 0000067215)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DY
What is the AI rating for DY?
DYCOM INDUSTRIES INC (DY) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DY's key strengths?
Claude: Strong free cash flow generation ($401.7M) with 7.2% FCF margin demonstrates operational efficiency and cash conversion. Solid liquidity position with 2.74x current ratio and $709.2M cash on hand provides financial flexibility.
What are the risks of investing in DY?
Claude: Extraordinarily high revenue growth (8438% YoY) is atypical and suggests acquisition, merger, or accounting restatement requiring verification of organic growth. Thin gross margin of 2.9% indicates low product/service pricing power and vulnerability to cost inflation; typical for construction services but leaves little room for error.
What is DY's revenue and growth?
DYCOM INDUSTRIES INC reported revenue of $5.5B.
Does DY pay dividends?
DYCOM INDUSTRIES INC does not currently pay dividends.
Where can I find DY SEC filings?
Official SEC filings for DYCOM INDUSTRIES INC (CIK: 0000067215) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DY's EPS?
DYCOM INDUSTRIES INC has a diluted EPS of $9.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DY a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, DYCOM INDUSTRIES INC has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DY stock overvalued or undervalued?
Valuation metrics for DY: ROE of 15.1% (sector avg: 15%), net margin of 5.1% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy DY stock in 2026?
Our dual AI analysis gives DYCOM INDUSTRIES INC a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DY's free cash flow?
DYCOM INDUSTRIES INC's operating cash flow is $642.5M, with capital expenditures of $240.8M. FCF margin is 7.2%.
How does DY compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 5.1% (avg: 10%), ROE 15.1% (avg: 15%), current ratio 2.74 (avg: 1.8).