DY: 37.8% TTM Growth, 0.39 PEG — 53% of It Was Acquired, and the Shares Fell 60%
Dycom clears this week's small-cap screen with 37.79% trailing revenue growth, a 0.39 PEG and $718.1 million of trailing operating cash flow, while the data-centre contractor it bought supplies 53% of that growth and the shares sit 60% below their May high.
Dycom Industries (NYSE: DY) cleared all four hard filters in this week's small-cap screen. The West Palm Beach specialty contractor reported 37.79% trailing-twelve-month revenue growth, a displayed PEG of 0.39, positive trailing operating cash flow of $718.1 million, and a $6.77 billion market capitalisation at the October 23, 2026 close of $224.56. 12
The shares sit 60.4% below their May 27, 2026 high of $566.47 and 47.1% lower over the past three months. 13
Analysts still rate the shares a buy. The Finviz average recommendation is 1.08, where 1 is a strong buy, and the average target is $513.18. Five targets published since September 2 run from $429 to $620. 14
This note answers one question: what the cheapness is for. Dycom bought its way into data-centre construction in December 2025, the acquired business earns roughly twice the margin of the legacy one, and the shares peaked on the day of a record quarter in May and slid for five months afterwards.
Screen verification
| Metric | Hard screen filter | DY observed value | Status | Data source and measurement basis |
|---|---|---|---|---|
| Market capitalisation | Under $10.0B | $6.77B | Pass | 30.16 million shares against the October 23, 2026 close of $224.56; Finviz shows $6.77B on the same count |
| TTM revenue growth | Above +30.0% | +37.79% | Pass | $6,880 million for the twelve months ended August 1, 2026 against $4,993 million a year earlier, as the quarterly table below shows; Finviz shows "Sales Y/Y TTM" of 37.79% |
| PEG ratio | Under 1.00 | 0.39 (Finviz) 0.47 (StockAnalysis) | Pass on both | Finviz divides a forward P/E of 11.01 by a projected five-year EPS growth rate of 28.42%; StockAnalysis divides its own 12.17 forward multiple by its own 27.35% growth forecast |
| Operating cash flow (TTM) | Above $0.00 | +$718.1M | Pass | Sum of the four quarters to August 1, 2026: $220.0M + $419.0M − $24.6M + $103.7M; StockAnalysis cash flow statement reports $718.11M |
The screen took every Nasdaq, NYSE and NYSE American listing with a market capitalisation between $200 million and $10 billion, trailing revenue above $100 million, growth above 30%, positive trailing operating cash flow, and a positive trailing earnings multiple, which the PEG calculation needs.
That produced 194 listings, 183 of them distinct common stocks once preferred and depositary lines were removed. Each was read on its Finviz quote page; 174 resolved, and 86 showed both trailing revenue growth above 30% and a displayed PEG below 1.
Dycom is one of the 86. It gets this week's note because its filings break the 37.79% into acquired and organic revenue quarter by quarter, which lets a reader rebuild the headline number from company documents.
Reproducing the trailing revenue figure
| Quarter | Contract revenues | Reported growth | Revenue from acquired businesses | Organic growth | Adjusted EBITDA margin |
|---|---|---|---|---|---|
| Q3 fiscal 2026 (October 25, 2025) | $1,451.8M | +14.1% | $110.9M | +7.2% | 15.1% |
| Q4 fiscal 2026 (January 31, 2026) | $1,457.6M | +34.4% | $95.8M | +16.6% | 11.1% |
| Q1 fiscal 2027 (May 2, 2026) | $1,964.8M | +56.1% | $395.4M | +24.7% | 13.4% |
| Q2 fiscal 2027 (August 1, 2026) | $2,005.9M | +45.6% | $397.5M | +16.7% | 15.7% |
| Trailing twelve months | $6,880.0M | +37.8% | $999.6M | — | 13.9% |
(Revenue and adjusted EBITDA from the four quarterly releases, each of which restates the year-earlier quarter beside the current one: Q3 fiscal 2026, Q4 fiscal 2026, Q1 fiscal 2027, Q2 fiscal 2027. Acquired revenue and organic growth are the company's own reconciled non-GAAP lines from the same releases. The TTM row sums those four quarters; its margin is $959.8 million of adjusted EBITDA over $6,880.0 million of revenue.)
The trailing total is the four quarters added: $1,451.8M + $1,457.6M + $1,964.8M + $2,005.9M = $6,880.0M. The year-earlier total is $1,272.0M + $1,084.5M + $1,258.6M + $1,377.9M = $4,993.1M, read from the comparative columns of the same releases. The increase is 37.79%.
One accounting detail matters for anyone rebuilding the series. Fiscal 2026 held 53 weeks, with the extra week falling in the January 2026 quarter, and Dycom strips $97.3M of it out of that quarter's organic base. The reported $1,457.6M for Q4 fiscal 2026 therefore contains a week that the year-earlier quarter did not. 5
Why the PEG is 0.39
Finviz divides a forward P/E of 11.01 by a 28.42% five-year EPS growth estimate. StockAnalysis divides its own 12.17 forward multiple by a 27.35% three-year forecast, which gives 0.47. Both vendors put the ratio below 1, and the two numbers sit close enough that the difference between their formulas does not change the verdict. 12
The forward multiple is where the sensitivity lives. At 11.01 times, the PEG stays under 1 while projected EPS growth stays above roughly 11.0%. A growth forecast cut below that level fails the filter without any change in price.
The strictest reading uses trailing figures: a 20.44 trailing multiple divided by 23.60% trailing EPS growth is 0.87. That version also clears the filter, with less room.
What the operating cash flow is made of
The four quarters that make up the trailing figure are uneven. $220.0 million came in the October 2025 quarter, $419.0 million in the January 2026 quarter, then negative $24.6 million in the May 2026 quarter and $103.7 million in the August 2026 quarter. 67
Contracting cash flow swings with the billing cycle. Accounts receivable and contract assets together came to $2,499 million on August 1 against $1,708 million a year earlier, and days sales outstanding improved to 101 from 108. Capital expenditure was $139.8 million in the first half against $131.2 million a year earlier. 789
The trailing figure leans on one unusually strong January quarter. The annual number is the better test: fiscal 2026 produced $642.5 million of operating cash flow and $435.3 million of free cash flow. 5
What Dycom sells
Dycom runs 38 operating companies that build and maintain telecom networks across all 50 states, and employed 19,556 people at January 31, 2026. The crews place and splice fiber, copper and coaxial cable, dig trenches, set poles and manholes, hang drop lines to houses, build cell towers and small cells, and locate buried utilities for gas, water and power companies.
About half of the Communications segment's revenue comes from recurring service and maintenance contracts, which management describes as a cushion against project timing. 1011
Two segments now report. Communications is the legacy business and grew 16.7% to $1.608 billion in the August quarter. Building Systems installs electrical, energy-management, security and fire-safety systems for data centres and other critical facilities, and reported $397.5 million of revenue in its second full quarter. 9
Building Systems exists because of two purchases. Dycom bought Power Solutions, a Northern Virginia contractor serving data centres, on December 23, 2025 for $1.95 billion, paid as $1,644.9 million of cash, 1,011,069 shares valued at $351.0 million, and $64.8 million of assumed debt.
It added National Technology Integrators in the August 2026 quarter for $275.0 million, a Maryland firm that runs structured cabling inside data centres plus audio-visual and security systems. That business contributed $22.9 million of revenue. 7
The customer list is short and it changed shape. AT&T supplied $403.5 million, or 20.1% of August-quarter revenue, Verizon $209.4 million at 10.4%, and Lumen $105.3 million at 5.3%. Everything else supplied $1,287.7 million, or 64.2%, against 47.5% a year earlier. The 10-Q gives widening the customer base as a reason for both purchases, and that catch-all line is where the widening shows. 7
How much of the growth was bought
The $1,887 million increase in trailing revenue splits in two. Businesses Dycom did not own a year earlier supplied $999.6 million, or 53%. Organic revenue supplied the rest, and on the company's own definitions organic revenue ran at $5,783 million over the trailing twelve months against $4,972 million a year earlier, a rise of 16.3%. 567
The 10-Q gives a third view for the August quarter. Had Power Solutions been owned for the whole of the year-earlier quarter, revenue would have been $1,644.5 million rather than $1,377.9 million, and the growth rate would have been 22.0% instead of 45.6%. 7
Organic growth is the number that moved the price. It went 0.7% in the April 2025 quarter, 3.4% in July 2025, 7.2% in October 2025, 16.6% in January 2026 and 24.7% in May 2026, then 16.7% in August 2026. 121314 The first deceleration in six quarters arrived in the same report that raised the revenue outlook.
The margin mix shifted with the purchases. Building Systems earned a 24.5% adjusted EBITDA margin in the August quarter against 13.6% in Communications, so a segment carrying 19.8% of revenue produced $97.2 million of the $315.5 million in adjusted EBITDA, or 30.8%. 9
Consolidated margin rose while the legacy segment's margin fell. Adjusted EBITDA margin was 15.7% in the August quarter against 14.9% a year earlier, and the Communications segment went from 14.9% to 13.6%, a drop of 134 basis points over the same quarters. 9
Why the shares fell 60%
The peak came on May 27, 2026, the day Dycom published its first-quarter report. The shares opened at $535.50 against the previous close of $420.47, touched $566.47 and closed at $529.13. They have not been near that level since. 3
The second-quarter report on August 26 took 11.6% off the price in a session, from $351.80 to $310.91, and the stock closed at $224.56 on October 23. That report contained three disclosures the market sold on. 314
The first was a deferral. About $150 million of wireless programme revenue moved out of fiscal 2027 and into fiscal 2028, and the company said the overall scope of the programme was unchanged. Management told the call it had line of sight to the projects, which is the language of a schedule that slipped rather than a contract that shrank. 1114
The second was a margin guide. Communications adjusted EBITDA margin moved from a flat-to-up expectation to a slight decline for fiscal 2027, which management put down to investment in the workforce ahead of the work and the lost operating leverage from the deferred wireless programmes. 14
The third was the shape of the guidance. Adjusted EPS of $5.29 beat the $4.68 consensus by 13%, and revenue of $2.01 billion beat by 1.4%, while the next quarter's guidance landed below consensus on revenue, EBITDA and EPS. 11
Dycom was sold with its whole peer group. Over the same three months MasTec fell 49.2%, Sterling Infrastructure 44.0%, Argan 39.0%, MYR Group 31.0% and IESC Holdings 29.2%, while Dycom fell 47.1%. 1516171819
A company-specific fact sits alongside that sector move. Among the six contractors named in this note, Dycom carries the largest debt load against its equity at 1.48 times; the other five run from 0.02 to 0.93 times. A contractor holding $2.5 billion of net debt falls further than its peers when the market decides the infrastructure build is late.
Valuation, anchored to four listed peers
| Metric at the October 23, 2026 close | Dycom 1 | MasTec (MTZ) 15 | IESC Holdings (IESC) 19 | Sterling (STRL) 16 | Quanta (PWR) 20 |
|---|---|---|---|---|---|
| Market capitalisation | $6.77B | $13.74B | $8.60B | $10.87B | $82.15B |
| Enterprise value | $9.48B | $16.78B | $8.30B | $10.77B | $88.35B |
| TTM revenue growth | +37.79% | +23.46% | +22.66% | +60.83% | +26.30% |
| Forward P/E | 11.01x | 13.85x | 15.81x | 13.78x | 27.68x |
| EV / EBITDA (TTM) | 10.17x | 12.90x | 15.04x | 14.95x | 28.13x |
| Operating margin (TTM) | 8.06% | 5.21% | 12.38% | 18.27% | 6.41% |
| PEG | 0.39 | 0.39 | 0.49 | 0.32 | 0.94 |
| Return, past three months | −47.1% | −49.2% | −29.2% | −44.0% | −11.9% |
(Every row uses one vendor's definitions so the comparison means the same thing across the five columns; all figures come from the Finviz quote pages linked in the column headers, read at the October 23, 2026 close.)
Dycom is the cheapest of the five on both enterprise value to EBITDA and forward earnings, and it has the second-lowest operating margin and the second-fastest trailing growth. The PEG of 0.39 is identical to MasTec's, which means the filter result is common to the sector rather than a discount unique to Dycom.
What the multiple assumes. Consensus for the fiscal year ending January 2028 is $8.58 billion of revenue and $20.77 of adjusted EPS, from six analysts. 4 At the 30.37 million diluted shares reported for the August quarter, $20.77 is $631 million of adjusted net income. At the 20.6% effective tax rate of the first half, that is $795 million before tax. 7
Adding back depreciation and net interest takes it to adjusted EBITDA. Quarterly depreciation and amortisation of $115.6 million includes roughly $44 million of amortisation on the customer relationships and backlog the two purchases brought, valued at $580.0 million and $155.0 million over 15 years and 1.5 years respectively.
That leaves about $286 million a year of depreciation, plus annual net interest near $150 million. The sum is roughly $1.23 billion of adjusted EBITDA, or 14.3% of $8.58 billion. 7
That 14.3% sits between the 13.3% earned in fiscal 2026 and the 14.6% earned in the first half of fiscal 2027. Consensus therefore asks for the first-half margin to hold at an annual scale. Each point of consolidated adjusted EBITDA margin on $8.58 billion is $86 million, which is about $2.25 a share after tax.
On this year's numbers the multiple is lower still. First-half adjusted EBITDA was $578.0 million and the third-quarter guidance midpoint is $291.5 million. The $7.57 billion full-year midpoint leaves $1.66 billion of fourth-quarter revenue, which adds about $207 million at a 12.5% margin, for roughly $1.08 billion in total, or 14.2% of the year.
Against an enterprise value of $9.27 billion, using the company's own $2,502.6 million of notional net debt and the October 23 market capitalisation, that is 8.6 times. 914
Growth catalysts
Backlog is at a record and grew faster than revenue. Total backlog reached $12.242 billion on August 1, up 53.2% year over year and 28% since the start of the fiscal year. Communications backlog was $10.983 billion, up 37.5%, and Building Systems $1.259 billion. The next twelve months account for $6.472 billion of the total, up 40.6% from $4.604 billion a year earlier. 914
Bookings are running ahead of billings. Organic book-to-bill was 1.4 times for the first half, and contracted backlog for long-haul, middle-mile and inside-the-fence fiber work passed $1 billion. 9
Fiber-to-the-home is the volume driver. Management put fiber-to-the-home growth near 60% in the first half and described the programmes as complex to start, with scale as the differentiator in winning them. 11
Building Systems has room to be added to. Management named further acquisitions as part of the plan for the segment and pointed to cross-selling between fiber and electrical work on data-centre sites. Building Systems revenue guidance was raised to $1.58 billion to $1.65 billion for fiscal 2027. 1114
Insiders bought shares in September. Chief executive Daniel Peyovich bought 850 shares at $296.76 on September 9, director David Fallon bought 700 at $286.92 on September 1, and director Carmen Sabater bought 350 at $280.62 on September 23, all at market prices. The three purchases total about $549,000, which is small against the compensation those directors receive. 212223
Monitorable risks
1. The legacy segment's margin is being guided down. Communications adjusted EBITDA margin fell to 13.6% in the August quarter from 14.9%, and the company expects a slight decline for fiscal 2027 against fiscal 2026. Trigger: a Communications margin below 12.3%, the level reported in the May quarter, or a second cut to the full-year guide. Horizon: the report for the quarter ending October 31, 2026. 714
2. The $150 million of wireless revenue has to arrive in fiscal 2028. The deferral removed it from fiscal 2027 revenue guidance, and the programme's scope was left unchanged. Trigger: fiscal 2028 guidance that shows wireless revenue below the $150 million being carried forward, or a second deferral in the next two reports. Horizon: fiscal 2028 guidance with the fiscal 2027 fourth-quarter report. 14
3. The 24.5% Building Systems margin rests partly on project estimates. Management credited favourable changes in cost estimates on projects and scope of services alongside operating leverage. Guidance for the rest of fiscal 2027 is a segment margin in the high teens to low twenties. Trigger: a segment margin below 18% in any quarter, or an order-of-magnitude charge against a project. Horizon: the two remaining reports of fiscal 2027. 14
4. One customer supplies a fifth of revenue. AT&T paid $403.5 million in the August quarter, or 20.1% of the total. The company's master service agreements let customers award work elsewhere above set values and terminate for convenience. Trigger: AT&T revenue below its $373.0 million level of the year-earlier August quarter, or next-twelve-month backlog falling below the $4.604 billion it reached in August 2025. Horizon: every quarter. 710
5. The balance sheet carries the acquisitions. Total debt is $2,842.7 million at face value against $340.1 million of cash, or $2,502.6 million of net debt, which is 2.6 times trailing adjusted EBITDA. Interest cost $37.965 million in the August quarter alone against $15.558 million a year earlier. Goodwill of $1,599 million is 77% of the $2,064 million of equity.
Trigger: a further debt-funded acquisition that leaves net debt above 3.0 times adjusted EBITDA, or liquidity below $750 million against the $1,086.5 million available on August 1. Horizon: announced deals and each quarterly balance sheet. 79
Next reporting checkpoint
Dycom closed its fiscal third quarter on October 31, 2026. The company has filed seven consecutive quarterly results as current reports, 25 days after quarter end in five of them and 32 days after the two January year-ends, which points to November 25 for this one, the day before Thanksgiving. The company has not announced the date. 24
Guidance for that quarter is $1.90 billion to $1.98 billion of revenue, $281 million to $302 million of adjusted EBITDA, and $4.33 to $4.79 of adjusted diluted EPS. 14
Four things to check in it:
- Revenue against the $1.90 billion floor. The August quarter's organic growth of 16.7% was the slowest in six quarters; a print below the floor would make three decelerating data points in a row.
- Communications adjusted EBITDA margin against 13.6% and the guided slight decline, and whether the workforce investment that caused it is still growing faster than revenue.
- Building Systems margin against 24.5% and the low-twenties ceiling of the guidance range, which tests how much of the August quarter came from cost-estimate changes.
- Backlog and next-twelve-month backlog against $12.242 billion and $6.472 billion, as the first check on whether the $150 million deferral is the last schedule change this cycle.
Watchlist conclusion
Dycom passes all four hard filters on the sources cited here: a $6.77 billion market capitalisation, 37.79% trailing revenue growth, $718.1 million of trailing operating cash flow, and a PEG of 0.39 that a second vendor puts at 0.47. 12
The growth filter is the one that needs testing. Just over half of the trailing increase was bought, and the organic rate that the market has been paying for fell from 24.7% to 16.7% between the May and August quarters. Against that, backlog grew 53.2%, organic book-to-bill ran at 1.4 times, and the acquired segment earns 24.5% margins against 13.6% in the legacy business.
Two numbers settle the next step. A December-quarter report showing revenue of at least $1.90 billion with Communications margin at or above 13.6% would make the August print the trough of a schedule shift. Revenue below the floor, or a second deferral, would leave the burden of proof on the business Dycom bought.
One mechanical note for anyone tracking this screen: at $6.77 billion, a rise of 47.7% to $331.60 a share takes Dycom past the $10 billion ceiling and off this channel's list.
This article reports figures and company statements as published. It is not investment advice, and it is not a recommendation to buy or sell any security.
References
- 1Finviz — Dycom quote
finviz.com
- 2StockAnalysis — Dycom statistics
stockanalysis.com
- 3Nasdaq — Dycom historical prices
nasdaq.com
- 4StockAnalysis — Dycom forecast
stockanalysis.com
- 5
- 6
- 7
- 8StockAnalysis — Dycom quarterly balance sheet
stockanalysis.com
- 9
- 10
- 11StockStory — Dycom Q2 fiscal 2027 earnings call summary
stockstory.org
- 12
- 13
- 14
- 15Finviz — MasTec quote
finviz.com
- 16Finviz — Sterling Infrastructure quote
finviz.com
- 17Finviz — Argan quote
finviz.com
- 18Finviz — MYR Group quote
finviz.com
- 19Finviz — IESC quote
finviz.com
- 20Finviz — Quanta Services quote
finviz.com
- 21
- 22
- 23
- 24SEC EDGAR — Dycom filing history
data.sec.gov
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