Gordon ReidDycom IndustriesDYBUYJun 10, 2024

Has few very large customers, big telcos and cable companies. They are laying fibre optics across North America to get rural America wired (most of America has poor connectivity). Enjoys a sales backlog, but the risk lies in a company deferring sales, say, out of poor weather.

They are rewiring America for 1-gig fibre. They have the major streamers and telcos as clients.

It's rewiring North American for 1-Gig technology, but it's lumpy because it relies on only 8-9 major clients that comprise their revenues. So, if one client defers a project for a quarter or two, Dycom will take a big hit.

Numbers are lumpy, as 8-10 customers make up 80% of revenue. If you buy, be patient with it. High beta stock, but great opportunity. Order backlog of ~1.5 years. 

Has a big piece of bringing the internet to rural America. Backlog represents about 18 months of revenue. Inexpensive at 15x.

Fibre cable throughout NA. 5 customers make up 66% of revenues, which can mean lumpy results, so you have to be comfortable with that prospect if you're going to buy this one. Weather can also push things off. Highly volatile, but trajectory is up and to the right. $6B backlog (or about 18 months of revenue), pushing to $7B by year's end, on the back of a $40B US infrastructure bill. Multiple is not extreme. No dividend.

Building rural communications infrastructure.
Massive recipient of Federal government spending.
Backlog of $6 billion in projects.
Expect high volatility in stock price.
Very good long term hold with strong management team.

Their earnings are lumpy with revenues coming from a limited number of clients. Beware. They are a big player in rewiring North America in 5G, which is a plus. Comcast, Google and others are big customers. The risk is, if one of these clients delays a project, then DY gets his for a quarter or so. Long term, this will do well and benefit from the long-term 5G theme.

An infrastructure company in telecoms; their biggest customers are telecoms like Verizon and Comcast. They string the contintent for 5G capability. Warning: It's a lumpy business, because it's bsed on fixed costs. However, Dycom is getting a lot of positive attention because they are the go-to business to lay the fibre optics for the coming 5G revolution. This can easily earn $6/share, so it's not expensive now. (Analysts’ price target is $102.00)