The Short Answer
Dycom stock (DY) is currently doubtful on the stored quantitative screen. Providing engineering, construction, and maintenance services for telecom and utility networks is a clearly permissible activity, but the latest filing shows debt and receivable proxies above examined limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-02; calculated 2026-07-15.
2,815.714 / 6,180.4
538.826 / 6,180.4
2,759.517 / 6,180.4
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.56%, above the examined 33.333% limit; receivables-plus-cash/assets is 44.65% and the income numerator remains unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.56% and receivables-plus-cash/assets is 44.65%, above the examined MSCI limits.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.56%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the asset-based debt and receivables screens already fail.
Business-activity disclosure
Dycom provides engineering, construction and maintenance services for telecommunications and utility networks, with a building-systems expansion. Infrastructure contracting is generally permissible, while customer end use, concentration and project obligations require qualitative review.
Limitation: The filing does not allocate revenue by downstream end use or provide a universal prohibited-revenue or non-compliant-income numerator.
Purification
The filing reports net interest expense but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Dycom's May 2, 2026 Form 10-Q.
- Debt combines current debt of $6.000 million and long-term debt of $2,809.714 million.
- Cash and equivalents are $538.826 million; restricted cash is not treated as an interest-bearing security.
- The receivable proxy combines accounts receivable of $1,980.558 million and contract assets of $240.133 million.
- The filing reports net interest expense but no reproducible gross non-compliant-income numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
The current filing-based analysis therefore treats the financial result as doubtful. The infrastructure business remains qualitatively permissible, but the debt screen fails under all three examined asset-based methods.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Dycom's Business Activity
Dycom Industries, Inc. is a specialty contractor for the telecom and utility sectors. Its activity is:
- Network construction: Engineering and building fiber and broadband networks
- Maintenance services: Maintaining telecommunications and utility infrastructure
- Underground utility locating: Locating buried utilities for providers
Providing infrastructure construction services is a clearly permissible activity with no haram revenue line of its own.
Why DY Is Halal
1. Permissible Core Business
Building and maintaining communications and utility infrastructure is a halal specialty-contracting business. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
Dycom carries moderate operating and acquisition debt, so total debt / market cap is the main screen. Confirm it sits under the 33% threshold on the latest filings before investing.
3. Receivables and Interest to Check
As a contractor, Dycom's receivables ratio (total receivables / total assets) is worth checking against the relevant threshold, and incidental interest income on cash should be checked against the 5% threshold and the corresponding small portion of returns purified.
Current Filing-Based Quantitative Screen
Dycom's May 2, 2026 Form 10-Q reports the following transparent total-assets proxies:
- Debt / assets: 45.56% — above the examined 33.333% limits ❌
- Liquidity / assets: 8.72% — below the examined limits ✅
- Receivables + cash / assets: 44.65% — above the examined MSCI-style 33.33% limit ❌
- Business activity: Specialty contracting is generally permissible; customer end use remains qualitative ⚠️
Methodology Interpretation
The stored record applies transparent total-assets proxies for FTSE Yasaar, MSCI Islamic and Malaysia SAC-style tests. All three fail on debt; MSCI-style receivables also fails. No third-party app classification is asserted.
- FTSE Yasaar-style asset tests: fail on debt
- MSCI Islamic-style asset tests: fail on debt and receivables
- Malaysia SAC-style ratios: fail on debt; not an official classification
- Market-cap denominator: not calculated from a reproducible licensed series
Bottom Line
Dycom (DY) is doubtful in the current filing-based analysis. The infrastructure-services business is permissible, but debt/assets is 45.56% and the conservative receivable proxy also exceeds the examined MSCI-style limit. Re-screen after the next filing and consult a qualified scholar if the debt and contract-asset treatment changes.
For Muslim investors seeking infrastructure exposure, compare DY with peers like MasTec (MTZ), Construction Partners (ROAD), and Arcosa (ACA).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →