
Dycom Industries (DY) Stock Forecast & Price Target
Dycom Industries (DY) Analyst Ratings
Bulls say
Dycom Industries Inc. has demonstrated robust financial performance, with third-quarter revenue reaching a record $1,451.8 million, reflecting a 14.1% year-over-year increase and a notable 7.2% organic growth. The company's cash flow is also strong, evidenced by a year-to-date operating cash flow surge of almost 250% compared to the previous year, alongside a total backlog increase of 4.66% year-over-year and a 12-month backlog growth of 11.8%. Additionally, Dycom's diversification strategy is yielding positive results, as customer concentration has improved significantly from approximately 72% among its top five customers in FY2021 to around 55% in FY2025, enhancing its growth trajectory and financial stability.
Bears say
Dycom Industries Inc. faces a challenging outlook due to a significant decline in revenue contribution from its key client, Verizon, which plummeted from 19% in FY2021 to 6% in FY2025, raising concerns about customer concentration risks. Furthermore, the company's Days Sales Outstanding (DSO) has shown a slow but steady improvement, currently at 105 days, yet this metric still reflects potential cash flow issues. Additionally, adverse weather conditions could further disrupt the company's revenue generation and earnings, compounding the vulnerability of the business under weakened industry conditions.
This aggregate rating is based on analysts' research of Dycom Industries and is not a guaranteed prediction by Public.com or investment advice.
Dycom Industries (DY) Analyst Forecast & Price Prediction
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