Dassault Systemes SA (DASTY) AI Stock Analysis

• Market Cap: $37.14B
• Dividend Yield: 1.08%
• Average Volume (3M): 38.37K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.54
• 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: 0
• 30 Day Avg. Volume: 38,373
• 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: 0.97
• 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 Systemes SA (DASTY) is a French software company known for its 3D design, 3D digital mock-up, and product lifecycle management (PLM) solutions. Founded in 1981, it serves a wide range of industries including aerospace, automotive, consumer goods, energy, and life sciences. The company operates primarily through its 3DEXPERIENCE platform, which integrates various applications and services to enable companies to create, simulate, and manage their product development processes more efficiently.

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: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 27.52, below the 50-day MA of 28.90, and below the 200-day MA of 34.12, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 97.60 is Negative, 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	$63.62B	58.25	40.33%	―	15.62%	2.59%
WDAY	73 Outperform	$57.50B	91.80	7.34%	―	13.35%	-60.76%
PTC	73 Outperform	$21.28B	29.03	21.05%	―	19.18%	96.62%
DASTY	72 Outperform	$37.14B	28.33	13.80%	1.08%	5.22%	6.27%
BSY	71 Outperform	$12.07B	48.01	24.16%	0.70%	11.12%	-26.24%
FICO	69 Neutral	$41.45B	65.87	―	―	15.91%	29.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Dassault Systemes SA Corporate Events

Dassault Systèmes Reports Strong Q3 2025 Performance

Dassault Systèmes S.A. (ADR) is a leading software company specializing in 3D design, 3D digital mock-up, and product lifecycle management solutions, primarily serving industries such as manufacturing, life sciences, and infrastructure.

Dassault Systèmes Earnings Call: Subscription Growth Shines

Dassault Systèmes S.A. (ADR) recently held its earnings call, revealing a slightly positive sentiment among investors and analysts. The company showcased impressive subscription growth and significant contract wins, particularly in the Industrial segment, which signals a positive trend towards subscription and cloud solutions. However, challenges in the Life Sciences segment, alongside lower growth from MEDIDATA and Centric, as well as concerns regarding cash flow conversion, have tempered the overall enthusiasm.