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Dassault Systemes S.A. (ADR) (DASTY)
OTHER OTC:DASTY
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Dassault Systemes SA
(OTC:DASTY)
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Rating:76Outperform
Price Target:
$38.00
▲(10.75% Upside)
Dassault Systemes SA's overall stock score of 76 reflects its strong financial performance and positive earnings call sentiment. The company's robust revenue growth and strategic focus on AI-driven innovations are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to mixed momentum. Investors should consider these factors when evaluating the stock.
Dassault Systemes SA (DASTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.08B
Dividend Yield0.89%
Average Volume (3M)11.56K
Price to Earnings (P/E)35.8
Beta (1Y)0.54
Revenue Growth4.66%
EPS Growth1.54%
CountryUS
Employees26,225
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.35
Shares Outstanding1,344,379,800
10 Day Avg. Volume11,920
30 Day Avg. Volume11,556
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue7.24
Enterprise Value/Gross Profit8.68
Enterprise Value/Ebitda23.55
Forecast
1Y Price Target
$34.00Price Target Upside-0.90% Downside
Rating ConsensusHold
Number of Analyst Covering1
Dassault Systemes SA Business Overview & Revenue Model
Company DescriptionDassault Systèmes SE is a leading global provider of 3D design, 3D digital mock-up, and product lifecycle management (PLM) software. Founded in 1981 and headquartered in Vélizy-Villacoublay, France, the company serves a wide range of industries including aerospace, automotive, consumer goods, and life sciences. Its core products include the 3DEXPERIENCE platform, CATIA, SOLIDWORKS, and ENOVIA, which enable companies to create, simulate, and manage the entire lifecycle of their products from design to manufacturing and maintenance.
How the Company Makes MoneyDassault Systèmes generates revenue primarily through software licenses, subscription services, and maintenance agreements. The company offers various licensing models, including perpetual licenses and subscription-based SaaS solutions, which provide recurring revenue streams. Key revenue streams include the sale of software licenses for its flagship products like CATIA and SOLIDWORKS, as well as subscription services for its cloud-based offerings on the 3DEXPERIENCE platform. Additionally, the company earns income from maintenance and support services for its software products. Significant partnerships with major companies in industries such as aerospace and automotive further enhance its revenue opportunities, as customers often integrate Dassault Systèmes' solutions into their operations to improve design and manufacturing processes.
Dassault Systemes SA Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call highlights a solid performance in subscription and 3DEXPERIENCE growth, resilience in key sectors, and AI-driven innovations. However, challenges in Life Sciences, service revenue, and currency headwinds presented some obstacles. The positive aspects, such as strategic partnerships and financial health, slightly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Subscription and 3DEXPERIENCE Growth
Subscription revenue increased by 10%, and 3DEXPERIENCE saw a significant growth of 20%.
Resilient Performance in Key Sectors
Transportation & Mobility and Aerospace & Defense showed resilience with mid-single-digit growth and a 15% increase year-to-date, respectively.
AI-Driven Innovations
AI is creating new growth paths, especially in regulatory compliance and software-defined productions, with virtual twins transforming compliance into a strategic advantage.
Strategic Partnerships and Acquisitions
Dassault Systemes signed a strategic partnership with Thales Alenia Space and acquired ASCON QUBE technology, enhancing their manufacturing offer.
Cash Flow and Financial Health
Operating cash flow for the first half of the year was €1.147 billion, up 2% year-over-year with a strong net cash position.
Negative Updates
Flat Life Sciences Growth
Life Sciences segment experienced flat growth in the second quarter due to weaker performance in the CRO segment.
Service Revenue Challenges
Service revenue was lower, although improvements are expected in the second half of the year.
Currency Headwinds
Operating margin was impacted by 50 basis points of negative currency headwinds compared to last year.
Moderate Growth in Mainstream Innovation
SOLIDWORKS and Centric had moderate growth, with Centric affected by timing effects of renewals.
Company Guidance
During the call, Dassault Systemes provided guidance for the full year 2025, maintaining their revenue growth forecast between 6% to 8% and EPS growth between 7% to 10%, excluding foreign exchange impacts. They reported a solid Q2 with total and software revenue growth of 6%, subscription revenue up by 10%, and 3DEXPERIENCE revenue increasing by 20%. EPS for the quarter was EUR 0.30. The company highlighted their focus on expanding in areas like space, defense, energy, and AI-driven cloud infrastructure, emphasizing the growing importance of AI and regulatory compliance in their business strategy. The CFO, Rouven Bergmann, outlined that despite challenges, such as the currency impacts and the shifts in clinical trial volumes affecting MEDIDATA, the company expects H2 to continue positively. They projected Q3 revenue growth between 5% to 8%, with an operating margin expected to be in the range of 29.7% to 29.9%.Dassault Systemes SA Financial Statement Overview
Summary
Dassault Systemes SA shows strong financial health with impressive revenue growth and profitability. The balance sheet is robust with effective leverage management, while cash flow generation remains solid despite a recent decline in free cash flow growth. The company is well-positioned in the software application industry, but attention should be given to maintaining operational efficiency and cash flow stability.Income Statement
Dassault Systemes SA demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 41.2%, indicating robust expansion. The company maintains high profitability with a gross profit margin of 82.05% and a net profit margin of 17.99% in the TTM period. However, there is a slight decline in EBIT margin from 23.5% in 2022 to 22.45% in the TTM period, which could indicate rising operational costs.85
Very Positive
Balance Sheet
The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.315 in the TTM period, showing effective leverage management. Return on equity remains stable at 13.29%, indicating efficient use of equity capital. The equity ratio is strong, suggesting a solid asset base. However, the decrease in total debt from previous years suggests a strategic reduction in leverage.78
Positive
Cash Flow
Cash flow analysis reveals a slight decline in free cash flow growth by 7.07% in the TTM period, which could be a concern. The operating cash flow to net income ratio is 0.50, indicating moderate cash generation relative to net income. The free cash flow to net income ratio remains strong at 89.21%, suggesting efficient cash conversion.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.31B | 6.21B | 5.95B | 5.67B | 4.86B | 4.45B |
| Gross Profit | 5.27B | 5.20B | 4.98B | 4.75B | 4.07B | 3.70B |
| EBITDA | 1.94B | 1.92B | 1.81B | 1.94B | 1.61B | 1.29B |
| Net Income | 1.14B | 1.20B | 1.05B | 931.50M | 773.70M | 491.00M |
Balance Sheet | ||||||
| Total Assets | 14.42B | 15.55B | 14.62B | 14.26B | 14.22B | 12.96B |
| Cash, Cash Equivalents and Short-Term Investments | 4.08B | 3.95B | 3.57B | 2.77B | 2.98B | 2.15B |
| Total Debt | 2.58B | 3.06B | 3.60B | 3.58B | 4.47B | 4.83B |
| Total Liabilities | 6.22B | 6.47B | 6.78B | 6.94B | 8.01B | 7.86B |
| Stockholders Equity | 8.18B | 9.07B | 7.83B | 7.31B | 6.20B | 5.06B |
Cash Flow | ||||||
| Free Cash Flow | 1.50B | 1.47B | 1.42B | 1.39B | 1.51B | 1.11B |
| Operating Cash Flow | 1.68B | 1.66B | 1.57B | 1.53B | 1.61B | 1.24B |
| Investing Cash Flow | -424.20M | -191.70M | -161.60M | -213.90M | -160.40M | -208.00M |
| Financing Cash Flow | -1.00B | -1.21B | -536.70M | -1.59B | -711.90M | -741.90M |
Dassault Systemes SA Technical Analysis
Positive
34.31
Price Trends
32.36
Positive
34.26
Positive
36.44
Negative
Market Momentum
0.29
Positive
60.86
Neutral
50.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DASTY, the sentiment is Positive. The current price of 34.31 is above the 20-day moving average (MA) of 33.40, above the 50-day MA of 32.36, and below the 200-day MA of 36.44, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DASTY.
Dassault Systemes SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $45.08B | 35.83 | 13.43% | 0.89% | 4.66% | 1.54% | |
74 Outperform | $24.29B | 47.81 | 15.71% | ― | 11.42% | 72.60% | |
71 Outperform | $38.89B | 63.37 | -47.82% | ― | 16.66% | 34.26% | |
71 Outperform | $62.68B | 108.57 | 6.66% | ― | 14.21% | -62.56% | |
70 Outperform | $64.98B | 63.25 | 40.20% | ― | 13.99% | -0.95% | |
69 Neutral | $15.27B | 64.26 | 23.69% | 0.54% | 10.45% | -32.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DASTY
Dassault Systemes SA
34.31
-1.65
-4.59%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.