Dycom IndustriesDY 80 Gross Margin % is 19.68% as of Apr. 2026, which is 5% above its 10-year median of 18.78. GuruFocus rates DY with a GF Score™ of 80/100 and a GF Value™ of $266.30 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,724 Construction companies, Dycom Industries ranks worse than 50.35% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dycom Industries had a gross margin of 19.68% for the quarter that ended in Apr. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dycom Industries Gross Margin % Related Terms
Dycom Industries Gross Margin % Historical Data
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The historical data trend for Dycom Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Engineering & Construction subindustry, Dycom Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dycom Industries Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Dycom Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dycom Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dycom Industries (DY) has a Gross Margin % of 19.68% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dycom Industries and its competitors. This is near median its historical median of 18.78. Over the past decade, Dycom Industries' Gross Margin % has ranged from 15.86 to 22.04. According to the industry distribution chart, Dycom Industries ranks #868 out of 1724 companies in the Construction industry, placing it in the top 50.3%.
Is Dycom Industries' Gross Margin % too high?
Dycom Industries' current Gross Margin % of 19.68% is near median its 10-year median of 18.78. Over the past 10 years, this metric has ranged from a low of 15.86 to a high of 22.04. The Construction industry median Gross Margin % is 20.71. Dycom Industries' value of 19.68% is 5% below this industry median. Based on the distribution chart, Dycom Industries ranks #868 out of 1724 companies in the Construction industry, which is below the industry midpoint. Overall, Dycom Industries has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dycom Industries' Gross Margin % compare to J and IESC?
According to the Construction industry distribution chart, Dycom Industries ranks #868 out of 1724 companies for Gross Margin %. This places Dycom Industries in the lower half of its industry. The industry median Gross Margin % is 20.71. Dycom Industries' value of 19.68% is 5% below this benchmark. Historically, Dycom Industries' own Gross Margin % has ranged from 15.86 to 22.04 over the past decade. While the company's 10-year median is 18.78 vs. the industry median of 20.71, Dycom Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dycom Industries's current Gross Margin % of 19.68% is 5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dycom Industries and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dycom Industries's current Gross Margin % is 19.68%, which is near median its own 10-year median of 18.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dycom Industries stock overvalued right now?
Based on GuruFocus' analysis, Dycom Industries (DY) is currently considered Significantly Overvalued. The stock's GF Value™ is $266.30, compared to a current price of $483.48 — trading 81.6% above its estimated fair value. The current Gross Margin % is 19.68%, which is near median its 10-year median of 18.78 and 5% below the Construction industry median of 20.71. Dycom Industries' overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dycom Industries (DY), the current Gross Margin % is 19.68% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dycom Industries (DY) Overvalued in 2026?
Based on GuruFocus' analysis, Dycom Industries stock appears to be overvalued.
The current stock price of $483.48 is trading 81.6% above its estimated GF Value™ of $266.30.
GuruFocus considers Dycom Industries to be Significantly Overvalued.
Key valuation signals for DY:
Gross Margin %: 19.68% (near median its 10-year median of 18.78)
GF Value™: $266.30 vs. price of $483.48 (81.6% above fair value)
Industry Position: 5% below the Construction median (#868 of 1724)
No single metric tells the full story. See the DY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dycom Industries Inc is a provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. The company has two reporting segments: Communications and Building Systems. The Communications segment provides specialty contracting services, including program management, planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications and digital infrastructure providers. The Building Systems segment specializes in providing comprehensive building infrastructure solutions, including electrical, energy management, security, and fire safety systems for data centers and other critical facilities. The firm generates key revenue from Communications.
80GF Score
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