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DY (Dycom Industries) Financial Strength : 6 (As of Jan. 2025)


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What is Dycom Industries Financial Strength?

Dycom Industries has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dycom Industries's Interest Coverage for the quarter that ended in Jan. 2025 was 3.34. Dycom Industries's debt to revenue ratio for the quarter that ended in Jan. 2025 was 0.24. As of today, Dycom Industries's Altman Z-Score is 4.62.


Competitive Comparison of Dycom Industries's Financial Strength

For the Engineering & Construction subindustry, Dycom Industries's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Dycom Industries's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dycom Industries's Financial Strength falls into.


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Dycom Industries Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Dycom Industries's Interest Expense for the months ended in Jan. 2025 was $-16 Mil. Its Operating Income for the months ended in Jan. 2025 was $54 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2025 was $1,010 Mil.

Dycom Industries's Interest Coverage for the quarter that ended in Jan. 2025 is

Interest Coverage=-1*Operating Income (Q: Jan. 2025 )/Interest Expense (Q: Jan. 2025 )
=-1*53.67/-16.053
=3.34

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Dycom Industries's Debt to Revenue Ratio for the quarter that ended in Jan. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Jan. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(45.823 + 1010.14) / 4338.1
=0.24

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dycom Industries has a Z-score of 4.62, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.62 is strong.

* 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  (NYSE:DY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dycom Industries has the Financial Strength Rank of 6.


Dycom Industries Financial Strength Related Terms

Thank you for viewing the detailed overview of Dycom Industries's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Dycom Industries Business Description

Traded in Other Exchanges
Address
11780 U.S. Highway One, Suite 600, Palm Beach Gardens, FL, USA, 33408
Dycom Industries Inc is a provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. Its operating companies supply telecommunications providers with a comprehensive portfolio of specialty services, including program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services and provide underground facility locating services for various utilities, including telecommunications providers, and others. It also provides a range of construction, maintenance, and installation services, including the placement and splicing of fiber, copper, and coaxial cables. It provides services throughout the United States.
Executives
Pruitt Peter T Jr director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Jennifer M Fritzsche director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Jason T Lawson officer: VP and CHRO 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Sharon Villaverde officer: VP & Chief Accounting Officer 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Marco Luis Avila director 11780 US HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Ryan F Urness officer: VP, GC & Secretary 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
H Andrew Deferrari officer: Sr. VP & CFO 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Richard K Sykes director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Dwight B Duke director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Steven E Nielsen director, officer: President and CEO 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Carmen M Sabater director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Stephen C Robinson director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Patricia Higgins director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Timothy R Estes officer: Executive VP & COO 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Daniel S Peyovich officer: Executive VP of Operations 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408