📊 DY Key Takeaways
Is Dycom Industries Inc. (DY) a Good Investment?
Dycom generates strong headline revenue but exhibits critical cash flow deterioration: negative operating cash flow of -$24.6M and deeply negative free cash flow of -$94.9M indicate the company is burning cash despite $91.3M net income, signaling poor earnings quality. Combined with high leverage (1.48x D/E) and thin margins (5.4% operating margin), this capital structure is unsustainable.
DYCOM INDUSTRIES shows solid underlying fundamentals through double-digit net income and EPS growth, strong operating cash flow, and healthy free cash flow generation backed by strong liquidity. However, elevated leverage and clear inconsistencies in the reported margin and revenue-growth figures reduce confidence in the quality of the latest reported trend, so the business looks fundamentally sound but not clean enough for a more aggressive rating.
Dycom Industries Inc. Key Strengths (DY)
- Strong revenue growth at $2.0B year-over-year, likely driven by strategic acquisition or business combination
- Positive net income of $91.3M and adequate profitability on accounting basis
- Strong short-term liquidity with 2.58x current ratio and $538.8M cash reserves
- Operates in essential infrastructure sector (water, sewer, pipeline, power) with structural tailwinds
- Net income and diluted EPS both grew about 20%, indicating continued earnings momentum
- Operating cash flow of $642.50M and free cash flow of $401.71M support good cash conversion
- Current ratio of 2.74x and quick ratio of 2.61x indicate strong near-term liquidity
DY Stock Risks: Dycom Industries Inc. Investment Risks
- Severe cash flow deterioration: negative operating cash flow (-$24.6M) and negative free cash flow (-$94.9M) despite positive earnings indicate poor cash conversion and earnings quality issues
- High financial leverage (1.48x debt-to-equity) combined with cash burn creates unsustainable capital structure; company cannot service debt long-term at current cash generation rates
- Razor-thin operating margins (5.4%) and weak returns on equity (4.8%) and assets (1.5%) provide minimal buffer for operational stress
- Extreme revenue growth of 8438% YoY suggests acquisition integration complexity; historical baseline and organic growth drivers unclear
- Debt/equity of 1.51x and $2.81B of long-term debt create meaningful balance-sheet leverage
- Reported gross margin of 2.9% versus operating margin of 6.6% suggests data inconsistency or unusual cost classification
- Revenue growth of +8438.2% appears distorted, raising questions about comparability and growth quality
Key Metrics to Watch
- Operating cash flow trend and cash conversion quality—must return to positive territory
- Free cash flow sustainability and cash burn rate relative to cash reserves depletion timeline
- Debt-to-EBITDA ratio and debt service coverage; ability to refinance maturities
- Working capital changes and whether profitability improvements translate to cash generation
- Free cash flow consistency versus net income
- Leverage reduction, especially long-term debt relative to equity and cash flow
Dycom Industries Inc. (DY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.58x current ratio provides a solid financial cushion.
DY Profit Margin, ROE & Profitability Analysis
DY vs Industrial Sector: How Dycom Industries Inc. Compares
How Dycom Industries Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dycom Industries Inc. Stock Overvalued? DY Valuation Analysis 2026
Based on fundamental analysis, Dycom Industries Inc. shows some fundamental concerns 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.
Dycom Industries Inc. Balance Sheet: DY Debt, Cash & Liquidity
DY Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
DY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $1.3B | $61.0M | $2.09 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dycom Industries Inc. Dividends, Buybacks & Capital Allocation
DY SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DY's key strengths?
Claude: Strong revenue growth at $2.0B year-over-year, likely driven by strategic acquisition or business combination. Positive net income of $91.3M and adequate profitability on accounting basis. ChatGPT: Net income and diluted EPS both grew about 20%, indicating continued earnings momentum. Operating cash flow of $642.50M and free cash flow of $401.71M support good cash conversion.
What are the risks of investing in DY?
Claude: Severe cash flow deterioration: negative operating cash flow (-$24.6M) and negative free cash flow (-$94.9M) despite positive earnings indicate poor cash conversion and earnings quality issues. High financial leverage (1.48x debt-to-equity) combined with cash burn creates unsustainable capital structure; company cannot service debt long-term at current cash generation rates. ChatGPT: Debt/equity of 1.51x and $2.81B of long-term debt create meaningful balance-sheet leverage. Reported gross margin of 2.9% versus operating margin of 6.6% suggests data inconsistency or unusual cost classification.
What is DY's revenue and growth?
Dycom Industries Inc. reported revenue of $2.0B.
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 $3.00.
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 grade reflects both perspectives for balanced insights.
What is DY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dycom Industries Inc. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DY stock overvalued or undervalued?
Valuation metrics for DY: ROE of 4.8% (sector avg: 15%), net margin of 4.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is DY's AI grade for 2026?
Our dual AI analysis gives Dycom Industries Inc. a combined C grade 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 $-24.6M, with capital expenditures of $70.3M. FCF margin is -4.8%.
How does DY compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.6% (avg: 10%), ROE 4.8% (avg: 15%), current ratio 2.58 (avg: 1.8).