DY:NYSEDycom Industries, Inc. Analysis
Data as of 2026-03-30 - not real-time
$331.22
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Dycom posted a spectacular 34% jump in revenue and record free cash flow in FY 2026, buoyed by an aggressive acquisition that expands its power‑solutions capabilities. The earnings beat and optimistic FY 2027 outlook underscore strong top‑line momentum and operational execution.
However, the stock trades well above its DCF‑derived fair value and carries a trailing PE that outpaces the industry average, while technical gauges show a neutral trend, a bearish MACD divergence and an RSI in the oversold‑to‑neutral band. Combined with elevated 30‑day volatility, a decreasing volume profile and a hefty debt load, the upside appears limited in the near term despite the growth narrative.
However, the stock trades well above its DCF‑derived fair value and carries a trailing PE that outpaces the industry average, while technical gauges show a neutral trend, a bearish MACD divergence and an RSI in the oversold‑to‑neutral band. Combined with elevated 30‑day volatility, a decreasing volume profile and a hefty debt load, the upside appears limited in the near term despite the growth narrative.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Recent earnings beat and record free cash flow
- Technical downside pressure (bearish MACD, RSI near oversold)
- Overvaluation relative to DCF and peers
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Sustained double‑digit revenue growth
- Strategic acquisition expanding service addressable market
- Forward earnings outlook improves valuation gap
Long Term
> 3 yearsNeutral
Model confidence: 6/10
Key Factors
- Industry demand for digital and utility infrastructure
- High leverage and capital‑intensive business model
- Potential for valuation normalization as growth stabilizes
Key Metrics & Analysis
Financial Health
Revenue Growth34.40%
Profit Margin5.07%
P/E Ratio34.6
ROE18.15%
ROA6.22%
Debt/Equity160.94
P/B Ratio5.3
Op. Cash Flow$642.5M
Free Cash Flow$276.5M
Industry P/E28.1
Technical Analysis
TrendNeutral
RSI35.8
Support$328.02
Resistance$423.42
MA 20$356.98
MA 50$381.61
MA 200$311.99
MACDBearish
VolumeDecreasing
Fear & Greed Index68.32
Valuation
Fair Value$260.05
Target Price$461.42
Upside/Downside39.31%
GradeOvervalued
TypeGrowth
Risk Assessment
Beta1.05
Volatility40.30%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.