Dycom IndustriesDY +4.05%86 Operating Margin % is 7.32% as of Apr. 2026, which is 15% above its 10-year median of 6.39. GuruFocus rates DY with a GF Score™ of 86/100 and a GF Value™ of $266.30 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,767 Construction companies, Dycom Industries ranks better than 60.1% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Dycom Industries Operating Margin % Related Terms
Dycom Industries Operating Margin % Historical Data
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The historical data trend for Dycom Industries's Operating 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 Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Dycom Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dycom Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Dycom Industries's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Dycom Industries (DY) has a Operating Margin % of 7.32% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dycom Industries and its competitors. This is 15% above median its historical median of 6.39. Over the past decade, Dycom Industries' Operating Margin % has ranged from 2.61 to 9.24. According to the industry distribution chart, Dycom Industries ranks #705 out of 1767 companies in the Construction industry, placing it in the top 39.9%.
Is Dycom Industries' Operating Margin % too high?
Dycom Industries' current Operating Margin % of 7.32% is 15% above median its 10-year median of 6.39. Over the past 10 years, this metric has ranged from a low of 2.61 to a high of 9.24. The Construction industry median Operating Margin % is 5.89. Dycom Industries' value of 7.32% is 24.3% above this industry median. Based on the distribution chart, Dycom Industries ranks #705 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Dycom Industries has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dycom Industries' Operating Margin % compare to J and IESC?
According to the Construction industry distribution chart, Dycom Industries ranks #705 out of 1767 companies for Operating Margin %. This puts Dycom Industries in the upper half of its industry. The industry median Operating Margin % is 5.89. Dycom Industries' value of 7.32% is 24.3% above this benchmark. Historically, Dycom Industries' own Operating Margin % has ranged from 2.61 to 9.24 over the past decade. While the company's 10-year median is 6.39 vs. the industry median of 5.89, Dycom Industries has consistently been above 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dycom Industries's current Operating Margin % of 7.32% is 24.3% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Dycom Industries and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dycom Industries's current Operating Margin % is 7.32%, which is 15% above median its own 10-year median of 6.39. 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 Operating Margin % is 7.32%, which is 15% above median its 10-year median of 6.39 and 24.3% above the Construction industry median of 5.89. Dycom Industries' overall GF Score™ is 86/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Dycom Industries (DY), the current Operating Margin % is 7.32% 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:
Operating Margin %: 7.32% (15% above median its 10-year median of 6.39)
GF Value™: $266.30 vs. price of $483.48 (81.6% above fair value)
Industry Position: 24.3% above the Construction median (#705 of 1767)
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.
86GF Score
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