| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 20.9x | 17.3x | Top tier | |
Growth | 83 | 37.8% | 7.1% | Top tier | |
Quality | 74 | 18.8% | 4.5% | Top tier | |
Safety | 60 | 2.7x | 2.6x | Around median | |
Capital Return | 23 | 0.00% | 0.06% | Bottom tier | |
Momentum | 16 | -7.9% | -1.6% | Bottom tier | |
Sentiment | 92 | 7 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dycom Industries builds digital and critical infrastructure, generating revenue from contracts to construct and maintain telecommunications networks, deploy fiber to homes and between data centers, and install electrical systems and cabling inside buildings. Its operations combine the Communications segment and the Building Systems segment, which includes Power Solutions and National Technology Integrators. Its service and maintenance business, which accounts for approximately half of Communications operations according to the 2026-08-26 call, provides a recurring revenue base alongside construction projects.
Revenue for quarter 2 of fiscal year 2027 (ended 2026-08-01) reached $2.0 billion, up 45.6% from the same quarter a year earlier, while net income was $115.6 million and diluted earnings per share were $3.81. Adjusted earnings before interest, taxes, depreciation and amortization reached $315.5 million, with a margin of 15.7%; this is an adjusted measure that differs from net income. According to EL7 data, operating cash flow for this quarter was $103.7 million, compared with -$24.6 million in quarter 1 of fiscal year 2027 (ending 2026-05).
Communications revenue in quarter 2 of fiscal year 2027 (ended 2026-08-01) reached $1.608 billion, growing organically by 16.7% from the same quarter a year earlier, but its adjusted earnings before interest, taxes, depreciation and amortization margin declined to 13.6%. Building Systems recorded revenue of $397.5 million, representing approximately 20% of the total, and an adjusted margin of 24.5%. This mix reveals the contribution of business diversification to the group's profitability, alongside pressure on the telecommunications segment from expansion costs and wireless project delays.
Q2 FY2027 (2026-08)
Last 12 months to 2026-08-01
When: 2026-11-24
Quarter 3 of fiscal year 2027 revenue versus the target range of $1.90 billion to $1.98 billion, in the expected earnings announcement
Quarter 3 of fiscal year 2027 adjusted earnings before interest, taxes, depreciation and amortization versus the target range of $281 million to $302 million, in the expected earnings announcement
The median analyst price target is $476, within a range of $375 to $654, a low-confidence indicative estimate because it relies on one analyst in this measure, and it reflects growth expectations. The industry-multiple valuation is $330, within a range of $250 to $405, based on next year's earnings at a median multiple of 17.4 times across 33 companies, valuing the company based on peer pricing. The no-growth valuation is $103, measuring the continuation of current after-tax operating profit in perpetuity at a discount rate of 11.8%. The analyst target range overlaps with the industry-multiple range, but the median target is higher than the multiple-based valuation, and both exceed the no-growth valuation, highlighting the effect of expansion expectations on the differing results. Analyst targets tend by nature toward optimism and cash flow models toward conservatism, while the average target in the analyst consensus is $507.86, a different measure from the median target.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Dycom benefits from deploying fiber that connects data centers, and from electrical systems and cabling inside them through Building Systems. The backlog of long-haul, middle-mile and on-site fiber contracts exceeded one billion dollars at the end of quarter 2 of fiscal year 2027 (ended 2026-08-01). Building Systems generated revenue of $397.5 million in this quarter, representing approximately 20% of group revenue. Management explained during the 2026-08-26 call that the fiber contracts span multiple customers, programs and regions.
Management said during the 2026-08-26 call that approximately $150 million in wireless revenue shifted from the second half of fiscal year 2027 to fiscal year 2028. It confirmed that the program's scope and backlog had not changed, and that completion remained scheduled for fiscal year 2028. However, the delay weakened fixed-cost absorption in Communications, alongside expansion and fuel costs. The established risk therefore concerns revenue timing and profitability, while management's statements do not support describing it as contract cancellations.
Automated analysis for informational purposes only — not investment advice.
The Communications adjusted earnings before interest, taxes, depreciation and amortization margin compared with the 13.6% recorded in quarter 2 of fiscal year 2027 (ended 2026-08-01), in the expected earnings announcement
According to EL7 data, operating cash flow for the last 12 months through 2026-08-01 was approximately $718.1 million, compared with net income of $329.6 million, a cash conversion ratio of 218%. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months was $468.7 million. In comparison, total debt according to EL7 data was approximately $2.8 billion at the end of quarter 2 of fiscal year 2027 (ended 2026-08-01), against cash and short-term investments of $577.1 million. The figures support strong cash generation, but leave debt management and capital allocation as important factors in evaluating performance.
The Building Systems adjusted earnings before interest, taxes, depreciation and amortization margin was approximately 24.5% in quarter 2 of fiscal year 2027 (ended 2026-08-01). This quarter benefited from business growth and favorable revisions to project cost estimates and service scope. Management set its fiscal year 2027 margin outlook in the high teens to low twenties, below that quarter's margin. It also acknowledged during the 2026-08-26 call that a shortage of trained electricians leads the business to turn down some projects.
The designated earnings announcement date is 2026-11-24, which is an expected date. The company is targeting revenue of between $1.90 billion and $1.98 billion for quarter 3 of fiscal year 2027. It is also targeting adjusted earnings before interest, taxes, depreciation and amortization of between $281 million and $302 million, and adjusted diluted earnings per share of between $4.33 and $4.79, excluding amortization of intangible assets. The results will show whether expansion in fiber and Building Systems can offset the impact of deferred wireless work.