Dassault Systemes SA (DASTY) AI Stock Analysis

• Market Cap: $38.59B
• Dividend Yield: 1.07%
• Average Volume (3M): 60.45K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.53
• Revenue Growth: 5.22%
• EPS Growth: 6.27%
• Country: US
• Employees: 26,225
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 1,344,379,800
• 10 Day Avg. Volume: 57,161
• 30 Day Avg. Volume: 60,455
• 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: 0.94
• Enterprise Value/Revenue: 5.51
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: 17.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $31.00 ▲(10.75% Upside)

Dassault Systemes SA's strong financial performance and positive earnings call sentiment are key strengths, supporting a solid overall score. However, technical indicators suggest potential bearish momentum, and valuation metrics indicate the stock may be overvalued, which tempers the overall score.

Positive Factors

Subscription Revenue Growth

The significant growth in subscription revenue highlights a successful transition to a more predictable and stable revenue model, enhancing long-term financial stability and customer retention.

AI and Cloud Growth

Strong growth in cloud and AI solutions indicates robust market adoption and positions Dassault Systemes well in the digital transformation landscape, driving future innovation and competitive advantage.

Balance Sheet Health

A strong balance sheet with reduced leverage enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Negative Factors

Life Sciences Sector Challenges

Declining growth in the Life Sciences sector could hinder overall revenue expansion, necessitating strategic adjustments to regain momentum in this critical area.

Cash Flow Conversion Concerns

Lower cash flow conversion rates may impact the company's ability to reinvest in growth opportunities and maintain financial health, posing a risk to long-term sustainability.

Upfront License Revenue Decline

A decline in upfront license revenue reflects a shift in client purchasing behavior, potentially affecting short-term cash inflows and necessitating adjustments in sales strategies.

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 Systemes generates revenue through a combination of software licenses, subscription services, and consulting services. The primary revenue stream comes from the sale of software licenses for its 3DEXPERIENCE platform and its various applications, which are often sold under a subscription model. Additionally, the company earns significant revenue from maintenance and support services for its software products. Consulting services also contribute to the revenue, as Dassault Systemes assists clients in implementing and optimizing their solutions. Strategic partnerships with major corporations and industry leaders enhance its market presence and drive additional revenue opportunities, particularly in sectors like aerospace and automotive, where digital transformation is increasingly critical.

Dassault Systemes SA Financial Statement Overview

Summary

Dassault Systemes SA demonstrates robust financial health with strong revenue growth, high profit margins, and efficient cash flow management. The balance sheet shows reduced leverage and effective equity utilization, positioning the company well for sustained growth.

Income Statement

Dassault Systemes SA shows strong financial performance with consistent revenue growth, highlighted by a 3.84% increase in TTM. The company maintains high gross profit margins above 82%, indicating efficient cost management. Net profit margins are stable around 18%, reflecting solid profitability. EBIT and EBITDA margins are robust, supporting operational efficiency.

Balance Sheet

The balance sheet is healthy with a declining debt-to-equity ratio, now at 0.31 in TTM, indicating reduced leverage. Return on equity is stable around 13%, showcasing effective use of equity capital. The equity ratio is strong, suggesting a solid asset base funded by equity. However, the company should continue monitoring debt levels to maintain financial stability.

Cash Flow

Cash flow performance is strong with a positive free cash flow growth rate of 2.58% in TTM. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. The free cash flow to net income ratio remains high, reflecting efficient cash conversion. Continued focus on cash flow management will support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.56B	6.21B	5.95B	5.67B	4.86B	4.45B
Gross Profit	5.28B	5.20B	4.98B	4.75B	4.07B	3.70B
EBITDA	2.06B	1.92B	1.81B	1.94B	1.59B	1.29B
Net Income	1.17B	1.20B	1.05B	931.50M	773.70M	491.00M
Balance Sheet
Total Assets	16.63B	15.55B	14.62B	14.26B	14.22B	12.96B
Cash, Cash Equivalents and Short-Term Investments	4.59B	3.95B	3.57B	2.77B	2.98B	2.15B
Total Debt	3.04B	3.06B	3.60B	3.58B	4.47B	4.83B
Total Liabilities	6.86B	6.47B	6.78B	6.94B	8.01B	7.86B
Stockholders Equity	9.76B	9.07B	7.83B	7.31B	6.20B	5.06B
Cash Flow
Free Cash Flow	1.53B	1.47B	1.42B	1.39B	1.51B	1.11B
Operating Cash Flow	1.71B	1.66B	1.57B	1.53B	1.61B	1.24B
Investing Cash Flow	-677.59M	-191.70M	-161.60M	-213.90M	-160.40M	-208.00M
Financing Cash Flow	-672.98M	-1.21B	-536.70M	-1.59B	-711.90M	-741.90M

Dassault Systemes SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DASTY, the sentiment is Neutral. The current price of 27.99 is above the 20-day moving average (MA) of 27.75, above the 50-day MA of 27.68, and below the 200-day MA of 33.26, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 72.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DASTY.

Dassault Systemes SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADSK	74 Outperform	$58.63B	53.69	40.33%	―	15.62%	2.59%
WDAY	73 Outperform	$54.49B	88.08	7.34%	―	13.35%	-60.76%
PTC	73 Outperform	$20.64B	28.28	21.05%	―	19.18%	96.62%
DASTY	72 Outperform	$38.59B	29.41	13.80%	1.07%	5.22%	6.27%
BSY	71 Outperform	$12.11B	48.47	24.16%	0.72%	11.12%	-26.24%
FICO	69 Neutral	$37.59B	59.73	―	―	15.91%	29.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%