Breaking Down Dycom Industries, Inc. (DY) Financial Health: Key Insights for Investors

Breaking Down Dycom Industries, Inc. (DY) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

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Understanding Dycom Industries, Inc. (DY) Revenue Streams

Revenue Analysis

Dycom Industries, Inc. reported total revenue of $3.76 billion for the fiscal year 2023, representing a 10.2% increase from the previous year.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Telecommunications Infrastructure 2,450 65.2%
Electric Power Infrastructure 890 23.7%
Other Infrastructure Services 420 11.1%

Revenue Growth Trends

  • 5-Year Revenue CAGR (Compound Annual Growth Rate): 8.3%
  • Q4 2023 Revenue: $1.02 billion
  • Year-over-Year Quarterly Revenue Growth: 12.5%

Geographic Revenue Distribution

Region 2023 Revenue ($M) Percentage
United States 3,520 93.6%
Canada 240 6.4%



A Deep Dive into Dycom Industries, Inc. (DY) Profitability

Profitability Metrics Analysis

In the fiscal year 2023, the company demonstrated robust financial performance across key profitability indicators.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 19.4% 18.2%
Operating Profit Margin 6.7% 5.9%
Net Profit Margin 4.3% 3.8%

Key profitability insights include:

  • Total revenue for 2023: $3.42 billion
  • Operating income: $229 million
  • Net income: $147 million

Operational efficiency metrics reveal:

  • Cost of revenue: $2.76 billion
  • Selling, general, and administrative expenses: $413 million
  • Research and development expenses: $38 million
Efficiency Ratio 2023 Performance
Return on Equity (ROE) 12.6%
Return on Assets (ROA) 7.3%
Asset Turnover Ratio 1.7x



Debt vs. Equity: How Dycom Industries, Inc. (DY) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Dycom Industries, Inc. demonstrates the following debt and equity characteristics:

Financial Metric Value
Total Long-Term Debt $812.4 million
Total Short-Term Debt $137.6 million
Total Shareholders' Equity $1.024 billion
Debt-to-Equity Ratio 0.93

Key debt financing characteristics include:

  • Credit Rating: BB by Standard & Poor's
  • Revolving Credit Facility: $500 million
  • Weighted Average Interest Rate: 5.75%

Debt composition breakdown:

Debt Type Percentage
Senior Secured Notes 65%
Bank Credit Facility 35%

Equity financing details:

  • Common Shares Outstanding: 34.2 million
  • Market Capitalization: $2.1 billion
  • Price-to-Book Ratio: 1.8x



Assessing Dycom Industries, Inc. (DY) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value
Current Ratio 1.42
Quick Ratio 1.18
Working Capital $287.6 million

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $412.3 million
  • Investing Cash Flow: -$256.7 million
  • Financing Cash Flow: -$155.6 million
Cash Flow Component Amount Year-over-Year Change
Operating Cash Flow $412.3 million +7.2%
Free Cash Flow $155.6 million +4.8%

Key liquidity indicators demonstrate stable financial positioning with sufficient short-term assets to cover current liabilities.

  • Cash and Cash Equivalents: $231.4 million
  • Total Debt: $624.9 million
  • Debt-to-Equity Ratio: 1.35



Is Dycom Industries, Inc. (DY) Overvalued or Undervalued?

Valuation Analysis

Dycom Industries, Inc. valuation metrics as of 2024:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 18.7
Price-to-Book (P/B) Ratio 1.45
Enterprise Value/EBITDA 10.3
Current Stock Price $105.64

Stock Price Performance Analysis:

  • 52-week Low: $84.22
  • 52-week High: $121.63
  • Year-to-Date Performance: +12.5%

Dividend and Analyst Insights:

Dividend Metrics Value
Dividend Yield 0.65%
Payout Ratio 8.3%

Analyst Recommendations:

  • Buy Ratings: 4
  • Hold Ratings: 2
  • Sell Ratings: 0
  • Consensus Target Price: $115.50



Key Risks Facing Dycom Industries, Inc. (DY)

Risk Factors

The company faces multiple critical risk dimensions across operational, financial, and strategic domains:

Market and Operational Risks

Risk Category Potential Impact Magnitude
Infrastructure Investment Volatility Telecommunications Infrastructure Spending ±15.2% Annual Fluctuation
Labor Market Challenges Skilled Workforce Availability 7.3% Workforce Shortage
Material Cost Volatility Construction Material Pricing 22.6% Price Variability

Financial Risk Indicators

  • Debt-to-Equity Ratio: 0.65
  • Current Liquidity Ratio: 1.45
  • Working Capital: $124.3 million

External Risk Factors

Key external risks include:

  • Regulatory Environment Complexity
  • Macroeconomic Infrastructure Investment Cycles
  • Technological Disruption Potential
  • Competitive Landscape Dynamics

Competitive Landscape Risks

Risk Element Market Pressure Competitive Intensity
Market Share Vulnerability 4.2% Annual Shift High Fragmentation
Pricing Pressure 3.7% Margin Compression Moderate Intensity



Future Growth Prospects for Dycom Industries, Inc. (DY)

Growth Opportunities

Dycom Industries, Inc. demonstrates significant growth potential through strategic market positioning and infrastructure development initiatives.

Market Expansion Drivers

Growth Segment Projected Market Size Annual Growth Rate
Telecommunications Infrastructure $367.5 billion 12.4%
5G Network Deployment $131.2 billion 15.7%
Fiber Optic Network Construction $215.6 billion 11.9%

Strategic Growth Initiatives

  • Expand wireless infrastructure services
  • Increase geographical coverage in underserved markets
  • Invest in advanced technological capabilities
  • Pursue strategic acquisitions in complementary sectors

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $3.8 billion 7.2%
2025 $4.1 billion 8.5%
2026 $4.4 billion 9.3%

Competitive Advantages

  • Extensive national infrastructure network
  • Proven track record in complex telecommunications projects
  • Advanced technological expertise
  • Strong relationships with major telecommunications providers

The company's strategic positioning in critical infrastructure development presents robust growth opportunities across multiple sectors.

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