Is DY a high-quality business?

AlphaMadera's AlphaQuality grade scores Dycom Industries, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how DY compares to a Buffett-style quality bar.

What is Dycom Industries, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to DY based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes DY a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

DY - Dycom Industries, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $471.75 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B- 66.3 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 55.9

5yr Avg ROIC 5.4% 37/100
Operating Margin Trend +2.16 pp/yr 100/100

Capital Efficiency

Weight: 15%

B- 67.3

5yr Avg ROE 9.9% 60/100
5yr Share-Count CAGR -1.2% 81/100

Growth Quality

Weight: 10%

A 92.1

5yr Revenue CAGR 15.4% 91/100
5yr EPS CAGR 57.1% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

B- 65.7

5yr FCF Margin 2.8% 39/100
5yr FCF/NI Conversion 0.98x 98/100

Balance Sheet

Weight: 25%

B+ 76.9

Net Debt / EBITDA 2.37x 63/100
Interest Coverage (EBIT/Int) 10.44x 86/100
Altman Z-Score 3.80 92/100

Stability

Weight: 20%

C- 47.7

EPS Volatility (σ/μ) 0.66 17/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

6 of 6 gurus held; 2 new buys; 2 added; 1 trimmed.

Holders: 6 +2
Avg Δ position: -4.8%
New buys: 2
Full exits: 0

Soros new
Laffont new
Greenblatt decreased -85%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.