Upside case
Bull case
$862+88.7%
DY would need investors to value it at roughly 52x earnings — about 24x more generous than today's 27x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Dycom Industries, Inc. (DY) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
22
analysts
21 bullish · 0 bearish · 22 covering DY
Strong Buy
1
Buy
20
Hold
1
Sell
0
Strong Sell
0
Consensus Target
$604
+32.2% vs today
Scenario Range
$412 – $862
Model bear to bull value window
Coverage
22
Published analyst ratings
Valuation Context
27.5x
Forward P/E · Market cap $13.7B
DY price targets
Three scenarios for where DY stock could go
Current
~$457
Confidence
47 / 100
Updated
Jun 18, 2026
Where we are now
Current · $457
Bear
$412
Base
$654
Bull
$862
Market caseClosest to today
Base case
$654+43.2%
At 39x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$412-9.8%
If investor confidence fades or macro conditions deteriorate, a 3x multiple contraction could push DY down roughly 10% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Dycom Industries, Inc.
DY · NYSEIndustrialsEngineering & ConstructionJanuary year-end
Dycom Industries is a specialty contracting company that builds and maintains telecommunications and utility infrastructure across the United States. It generates revenue primarily from construction and installation services for telecom providers — including fiber optic cable placement, tower construction, and network maintenance — with additional work for electric and gas utilities. The company's competitive advantage lies in its extensive national scale, specialized technical expertise, and long-standing relationships with major telecom carriers that rely on its services for network expansion and upgrades.
Market Cap
$13.7B
Revenue TTM
$6.3B
Net Income TTM
$311M
Net Margin
5.0%
DY Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+22.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$3.33/$2.92
Revenue
$1.4B/$1.4B
Q4 2025
EPS
$3.63/$3.21
Revenue
$1.5B/$1.4B
Q1 2026
EPS
$2.03/$1.91
Revenue
$1.5B/$1.4B
Q2 2026
EPS
$4.42/$2.72
Revenue
$2.0B/$1.7B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $3.33/$2.92 | +14.0% | $1.4B/$1.4B | -2.1% |
| Q4 2025 | $3.63/$3.21 | +13.1% | $1.5B/$1.4B | +3.1% |
| Q1 2026 | $2.03/$1.91 | +6.3% | $1.5B/$1.4B | +7.7% |
| Q2 2026 | $4.42/$2.72 | +62.5% | $2.0B/$1.7B | +17.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$7.0B
+11.9% YoY
FY2
$7.9B
+13.4% YoY
EPS Outlook
FY1
$12.69
+23.8% YoY
FY2
$14.53
+14.5% YoY
Trailing FCF (TTM)$440M
FCF Margin: 7.0%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
DY beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
DY Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2026
Total disclosed revenue $5.5B
Product Mix
Latest annual revenue by segment or product family
Communications Segment
100.0%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Communications Segment is the largest disclosed segment at 100.0% of FY 2026 revenue, with no year-over-year comparison yet.
DY Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly expensive versus peers
Fair value est. $398 — implies -12.8% from today's price.
Premium to Fair Value
12.8%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DY
47.8x
vs
S&P 500
24.4x
+95% premium
vs Industrials Trailing P/E
DY
47.8x
vs
Industrials
25.6x
+87% premium
vs DY 5Y Avg P/E
Today
47.8x
vs
5Y Average
30.3x
+58% premium
Forward PE
27.5x
S&P 500
18.8x
+46%
Industrials
21.2x
+30%
5Y Avg
—
—
Trailing PE
47.8x
S&P 500
24.4x
+95%
Industrials
25.6x
+87%
5Y Avg
30.3x
+58%
PEG Ratio
0.87x
S&P 500
1.66x
-48%
Industrials
1.65x
-47%
5Y Avg
—
—
EV/EBITDA
16.6x
S&P 500
15.2x
+9%
Industrials
13.9x
+19%
5Y Avg
11.1x
+50%
Price/FCF
34.1x
S&P 500
20.7x
+65%
Industrials
20.0x
+70%
5Y Avg
46.5x
-27%
Price/Sales
2.5x
S&P 500
3.1x
-20%
Industrials
1.6x
+58%
5Y Avg
1.1x
+124%
Dividend Yield
—
S&P 500
1.91%
—
Industrials
1.21%
—
5Y Avg
—
—
| Metric | DY | S&P 500 | Industrials | 5Y Avg DY |
|---|---|---|---|---|
| Forward PE | 27.5x | 18.8x+46% | 21.2x+30% | — |
| Trailing PE | 47.8x | 24.4x+95% | 25.6x+87% | 30.3x+58% |
| PEG Ratio | 0.87x | 1.66x-48% | 1.65x-47% | — |
| EV/EBITDA | 16.6x | 15.2x | 13.9x+19% | 11.1x+50% |
| Price/FCF | 34.1x | 20.7x+65% | 20.0x+70% | 46.5x-27% |
| Price/Sales | 2.5x | 3.1x-20% | 1.6x+58% | 1.1x+124% |
| Dividend Yield | — | 1.91% | 1.21% | — |
DY trades above S&P 500 benchmarks on 3 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolDY Financial Health
Verdict
Strong
DY 16.4% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$6.3B
Revenue Growth
TTM vs prior year
+29.8%
Gross Margin
Gross profit as a share of revenue
19.6%
Operating Margin
Operating income divided by revenue
12.0%
Net Margin
Net income divided by revenue
5.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$10.25
Free Cash Flow (TTM)
Cash generation after capex
$440M
FCF Margin
FCF as share of revenue — the primary cash quality signal
7.0%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
16.4%
ROA
Return on assets, trailing twelve months
6.7%
Cash & Equivalents
Liquid assets on the balance sheet
$709M
Net Debt
Total debt minus cash
$2.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
5.2× FCF
~5.2 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
18.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.2%
Dividend
—
Buyback
0.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$32M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
30M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageDY Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Customer concentration
Dycom relies heavily on a few major telecom clients, with over 66% of revenue concentrated among five customers, increasing earnings volatility and margin pressure.
High Risk
Cyclical exposure
The company faces significant cyclical risks, particularly in the FTTH (Fiber-to-the-Home) market, which may lead to revenue fluctuations.
High Risk
Project delays and cost inflation
Bear case highlights risks of project delays, cost inflation, and slower ramping of awarded work, potentially leading to margin compression and missed guidance.
Medium
Backlog overstatement
Dycom's reported $8 billion backlog is criticized as backward-looking and misleading, overstating revenue visibility.
Medium
Merger-driven risks
Recent mergers like AT&T-Lumen and Verizon-Frontier further concentrate customer risk, potentially exacerbating revenue dependency.
Lower
Hedge fund disinterest
Dycom is not among the 30 Most Popular Stocks Among Hedge Funds, suggesting lower institutional confidence or visibility.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why DY Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong revenue growth
Dycom Industries reported first-quarter 2026 results with contract revenues of US$1,964.78 million and raised its full-year fiscal 2027 revenue outlook to US$7.38-US$7.65 billion.
Earnings outperformance
Dycom Industries' second-quarter fiscal 2026 results showed earnings per share surpassing estimates, indicating strong financial performance.
Share buyback program
The company continues to execute its share buyback program, which can enhance shareholder value.
Fiber-to-the-home initiatives
Year-over-year growth in contract revenues is driven by fiber-to-the-home and infrastructure initiatives, highlighting strategic focus areas.
Board streamlining
The retirement of two directors under its tenure policy reduces the board to nine members, potentially improving governance efficiency.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
DY Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$456.65
52W Range Position
67%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$229.97
+98.6% from the low
52-Week High
$566.47
-19.4% from the high
1 Month
+8.81%
3 Month
+29.66%
YTD
+31.4%
1 Year
+96.1%
3Y CAGR
+62.7%
5Y CAGR
+45.3%
10Y CAGR
+17.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
DY vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
27.5x
vs 21.6x median
+27% above peer median
Revenue Growth
+11.9%
vs +8.2% median
+46% above peer median
Net Margin
5.0%
vs 3.7% median
+34% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DY DY Dycom Industries, Inc. | $13.7B | 27.5x | +11.9% | 5.0% | Buy | +32.2% |
PRI PRIM Primoris Services Corporation | $5.5B | 20.9x | +7.2% | 3.3% | Buy | +50.8% |
PWR PWR Quanta Services, Inc. | $105.4B | 50.2x | +13.2% | 3.7% | Buy | -4.0% |
MYR MYRG MYR Group Inc. | $7.2B | 40.3x | +8.8% | 3.7% | Hold | -10.5% |
WLD WLDN Willdan Group, Inc. | $1.3B | 21.6x | +8.1% | 8.2% | Buy | +32.0% |
GLD GLDD Great Lakes Dredge & Dock Corporation | $1.1B | 15.4x | +8.2% | 8.3% | Buy | — |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
DY Dividend and Capital Return
DY returns 0.2% annually — null% through dividends and 0.2% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.2%
Dividend + buyback return per year
Buyback Yield
0.2%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$32M
Estimated Shares Retired
70.3K
Approx. Share Reduction
0.2%
Shares Outstanding
Current diluted share count from the screening snapshot
30M
FAQ
7 questionsDY Investor Questions
Common questions answered from live analyst data and company financials.
01Is Dycom Industries, Inc. (DY) stock a buy or sell in 2026?
Dycom Industries, Inc. (DY) is rated Buy by Wall Street analysts as of 2026. Of 22 analysts covering the stock, 21 rate it Buy or Strong Buy, 1 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $604, implying +32.2% from the current price of $457. The bear case scenario is $412 and the bull case is $862.
02What is the DY stock price target for 2026?
The Wall Street consensus price target for DY is $604 based on 22 analyst estimates. The high-end target is $654 (+43.2% from today), and the low-end target is $420 (-8.0%). The base case model target is $654.
03Is Dycom Industries, Inc. (DY) stock overvalued in 2026?
DY trades at 27.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals slightly expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Dycom Industries, Inc. (DY) stock in 2026?
The primary risks for DY in 2026 are: (1) Customer concentration — Dycom relies heavily on a few major telecom clients, with over 66% of revenue concentrated among five customers, increasing earnings volatility and margin pressure. (2) Cyclical exposure — The company faces significant cyclical risks, particularly in the FTTH (Fiber-to-the-Home) market, which may lead to revenue fluctuations. (3) Project delays and cost inflation — Bear case highlights risks of project delays, cost inflation, and slower ramping of awarded work, potentially leading to margin compression and missed guidance. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Dycom Industries, Inc.'s revenue and earnings forecast?
Analyst consensus estimates DY will report consensus revenue of $7.0B (+11.9% year-over-year) and EPS of $12.69 (+23.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.9B in revenue.
06When does Dycom Industries, Inc. (DY) report its next earnings?
A confirmed upcoming earnings date for DY is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Dycom Industries, Inc. generate?
Dycom Industries, Inc. (DY) generated $440M in free cash flow over the trailing twelve months — a free cash flow margin of 7.0%. DY returns capital to shareholders through and share repurchases ($32M TTM).