Dassault Systemes SA (DASTY) AI Stock Analysis

• Market Cap: $43.00B
• Dividend Yield: 0.93%
• Average Volume (3M): 6.68K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.54
• Revenue Growth: 4.66%
• EPS Growth: 1.54%
• Country: US
• Employees: 26,225
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.35
• Shares Outstanding: 1,340,433,100
• 10 Day Avg. Volume: 8,223
• 30 Day Avg. Volume: 6,682
• PEG Ratio: 2.40
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 7.03
• P/FCF Ratio: 29.79
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 7.24
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 23.55
• 1Y Price Target: $34.00
• Price Target Upside: 6.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $38.00 ▲(18.53% Upside)

Dassault Systemes SA's overall stock score reflects its strong financial performance and positive long-term strategy as highlighted in the recent earnings call. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which could weigh on investor sentiment.

Dassault Systemes SA Business Overview & Revenue Model

Company Description

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS design software for 3D design, electrical and printed circuit board design, product data management, simulation, manufacturing, and technical communication; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for modeling and simulating the earth; and BIOVIA that provides the scientific community with advanced biological, chemical, and materials experiences. The company also provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. Further, the company provides consulting, deployment, outcome based, and training services. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; energy and materials; home and lifestyle; construction, cities, and territories; consumer packaged goods and retail; marine and offshore; and business services sectors through distributors and resellers. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.

How the Company Makes Money

Dassault Systèmes SA primarily generates revenue through the sale of software licenses and subscriptions for its 3D design and PLM solutions. The company offers both perpetual licenses and subscription-based models, allowing flexibility for clients across various industries. Additionally, Dassault Systèmes provides maintenance and support services, which contribute to recurring revenue streams. The company also engages in strategic partnerships and collaborations with other technology firms and industry leaders to enhance its offerings and expand its market reach. Revenue is further bolstered by consulting and training services that help clients maximize the value of their software investments.

Dassault Systemes SA Financial Statement Overview

Summary

Dassault Systemes SA shows strong financial health with robust profitability and efficient operations. The company exhibits consistent revenue growth and effective cost control, complemented by a solid balance sheet and strong cash flow generation. The conservative leverage and effective capital management enhance its financial resilience.

Income Statement

Dassault Systemes SA shows strong income statement metrics with consistent revenue and profit growth. The gross profit margin stands at 82.12% for TTM, indicating efficient cost management. The net profit margin is a robust 18.69%, suggesting healthy profitability. The revenue growth rate from the previous year is 5.47%, indicating steady upward momentum. EBIT and EBITDA margins are also commendable at 21.54% and 30.19% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.27, indicating a conservative leverage approach. The return on equity (ROE) is strong at 13.12%, demonstrating effective use of equity capital to generate profits. The equity ratio is 58.39%, suggesting a stable capital structure with significant equity backing.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 9.78% year-over-year growth in free cash flow. The operating cash flow to net income ratio of 1.53 suggests strong cash generation relative to earnings. The free cash flow to net income ratio of 1.37 further underscores the company's ability to convert earnings into free cash flow, enhancing financial flexibility.

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

• Technical Analysis Sentiment: Negative
• Last Price: 32.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DASTY, the sentiment is Negative. The current price of 32.06 is below the 20-day moving average (MA) of 35.01, below the 50-day MA of 36.04, and below the 200-day MA of 37.02, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 23.97 is Positive, neither overbought nor oversold. The STOCH value of 0.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DASTY.

Dassault Systemes SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	83 Outperform	$12.91B	31.87	25.76%	0.64%	9.86%	-14.34%
PTC	79 Outperform	$25.73B	50.85	15.71%	―	11.42%	72.60%
ADSK	76 Outperform	$64.01B	65.39	42.36%	―	12.89%	1.23%
ANSS	73 Outperform	$32.91B	55.57	10.23%	―	15.98%	35.52%
CDNS	71 Outperform	$98.14B	95.87	21.84%	―	22.29%	-4.94%
DASTY	68 Neutral	$43.00B	34.15	13.43%	0.93%	4.66%	1.54%
Sector *	61 Neutral	$34.83B	4.75	-10.43%	2.08%	6.55%	-10.00%