Dycom Industries Inc

DY

Water, Sewer, Pipeline, Comm & Power Line Construction

Mkt Cap

$5.177B

PE

22.51

Debt

$859.9M

Cash

$27.94M

EV

$6.009B

FCF

$89.16M

Market Cap

$5.177B

P/E Ratio

22.51

Debt

$859.9M

Cash

$27.94M

EV

$6.009B

FCF

$89.16M

Charts data: {"Earnings":[{"time":"2014-07-25","value":39978000},{"time":"2015-07-24","value":84324000},{"time":"2016-07-29","value":128740000},{"time":"2019-01-25","value":62907000},{"time":"2020-01-24","value":57215000},{"time":"2021-01-29","value":34337000},{"time":"2022-01-28","value":48574000},{"time":"2023-01-27","value":142213000},{"time":"2024-01-26","value":218923000}],"Sales":[{"time":"2014-07-25","value":1811593000},{"time":"2015-07-24","value":2022312000},{"time":"2016-07-29","value":2672542000},{"time":"2019-01-25","value":3127700000},{"time":"2020-01-24","value":3339682000},{"time":"2021-01-29","value":3199165000},{"time":"2022-01-28","value":3130519000},{"time":"2023-01-27","value":3808462000},{"time":"2024-01-26","value":4175574000}],"Net Margins":[{"time":"2014-07-25","value":0.022067870653066115},{"time":"2015-07-24","value":0.04169683016270487},{"time":"2016-07-29","value":0.04817136643689791},{"time":"2019-01-25","value":0.020112862486811395},{"time":"2020-01-24","value":0.017131870639180615},{"time":"2021-01-29","value":0.010733113171718245},{"time":"2022-01-28","value":0.015516277013492012},{"time":"2023-01-27","value":0.03734132045954509},{"time":"2024-01-26","value":0.052429438443672656}],"Assets":[{"time":"2014-07-25","value":1212354000},{"time":"2015-07-24","value":1358864000},{"time":"2016-07-29","value":1719716000},{"time":"2019-01-25","value":2097503000},{"time":"2020-01-24","value":2217631000},{"time":"2021-01-29","value":1944165000},{"time":"2022-01-28","value":2118224000},{"time":"2023-01-27","value":2313254000},{"time":"2024-01-26","value":2516885000}],"Stockholders Equity":[{"time":"2014-07-25","value":484934000},{"time":"2015-07-24","value":507200000},{"time":"2016-07-29","value":557287000},{"time":"2019-01-25","value":804168000},{"time":"2020-01-24","value":868604000},{"time":"2021-01-29","value":811308000},{"time":"2022-01-28","value":758544000},{"time":"2023-01-27","value":868755000},{"time":"2024-01-26","value":1054656000}],"ROE":[{"time":"2014-07-25","value":0.08244008463007337},{"time":"2015-07-24","value":0.16625394321766562},{"time":"2016-07-29","value":0.23101202791380385},{"time":"2019-01-25","value":0.07822619154206584},{"time":"2020-01-24","value":0.06587006276738307},{"time":"2021-01-29","value":0.042323014194362685},{"time":"2022-01-28","value":0.06403583707734818},{"time":"2023-01-27","value":0.16369747512244534},{"time":"2024-01-26","value":0.2075776366891195}],"ROA":[{"time":"2020-01-24","value":0.03541436785470622},{"time":"2021-01-29","value":0.030458834512502798},{"time":"2022-01-28","value":0.024915211988911466},{"time":"2023-01-27","value":0.07786520632840147},{"time":"2024-01-26","value":0.11601602774858605}]}

Dycom Industries, Inc. provides specialty contracting services to the telecommunications infrastructure and utility industries in the United States. The company offers engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems; wireless networks in connection with the deployment of macro cell and new small cell sites; and program and project management and inspection personnel. It also provides construction, maintenance, and installation services for telephone companies and cable multiple system operators, such as placement and splicing of fiber, copper, and coaxial cables; tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; underground facility locating services comprising locating telephone, cable television, power, water, sewer, and gas lines; installation and maintenance of customer premise equipment, including digital video recorders, set top boxes, and modems for cable system operators; and construction and maintenance services for electric and gas utilities, and other customers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.

Sector

10-Q
10/28/23
10-Q
7/29/23
10-Q
4/29/23
10-K
1/28/23
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10/29/22
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4/30/22
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10/30/21
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4/25/20
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1/25/20
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10/26/19
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7/27/19
10-Q
4/27/19
10-K
1/26/19
10-Q
10/27/18
10-Q
7/28/18
10-Q
4/28/18

DCF

Discounted Cash Flow Valuation of Dycom Industries Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$89.16M	$86.59M	$84.09M	$81.66M	$79.31M	$77.02M	$74.8M	$72.64M	$70.54M	$68.5M	$66.53M	$665.3M
DCF		$75.3M	$63.58M	$53.7M	$45.34M	$38.29M	$32.34M	$27.31M	$23.06M	$19.47M	$16.44M	$164.4M
Value	$559.3M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 3.5%

Earnings Stability 1.5%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	07-2014	07-2015	07-2016	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Net Margin	2.2%	4.2%	4.8%	2%	1.7%	1.1%	1.6%	3.7%	5.2%	5.4%
ROA	-	-	-	-	3.5%	3%	2.5%	7.8%	12%	12%
ROE	8.2%	17%	23%	7.8%	6.6%	4.2%	6.4%	16%	21%	21%

What is the average Net Margin?

The average Net Margin over the past 5 years is +2.55%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.65%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.69%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.09%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.36%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +2.75%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	07-2014	07-2015	07-2016	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Debt FCF	-	13.51	9.53	-21.55	-13.85	1.80	5.55	-22.81	19.98	9.64
Debt Equity	0.94	1.04	1.29	1.09	1.00	0.72	1.11	0.95	0.77	0.80
MIN
Graham Stability	-	-	-	75%	62%	41%	94%	100%	100%	41%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 9.64.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 5.27.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.41.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	07-2015	01-2019	01-2021	01-2023	Trend
Revenue	11%	5.9%	9.3%	9.6%	-1.6%
Net Income	15%	28%	85%	54%	6.5%
Stockholders Equity	11%	5.6%	9.1%	21%	-0.31%
FCF	0.57%	-	-50%	-	-37%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.95%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.61%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +28.33%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +6.53%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +5.57%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.31%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -36.8%.