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Dassault Systemes S.A. (ADR) (DASTY)
OTHER OTC:DASTY
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Dassault Systemes SA (DASTY) AI Stock Analysis

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DASTY

Dassault Systemes SA

(OTC:DASTY)

Rating:68Neutral
Price Target:
$38.00
▲(22.11% Upside)
Dassault Systemes SA's overall stock score is driven by strong financial performance and a positive outlook from the earnings call. However, technical indicators suggest bearish momentum, and the valuation appears high, which could limit upside potential. The company's strategic focus on AI and cloud initiatives provides a positive long-term growth trajectory.

Dassault Systemes SA (DASTY) vs. SPDR S&P 500 ETF (SPY)

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
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.31B6.21B5.95B5.67B4.86B4.45B
Gross Profit5.27B5.20B4.98B4.75B4.07B3.70B
EBITDA1.94B1.92B1.81B1.94B1.61B1.29B
Net Income1.14B1.20B1.05B931.50M773.70M491.00M
Balance Sheet
Total Assets14.42B15.55B14.62B14.26B14.22B12.96B
Cash, Cash Equivalents and Short-Term Investments4.08B3.95B3.57B2.77B2.98B2.15B
Total Debt2.58B3.06B3.60B3.58B4.47B4.83B
Total Liabilities6.22B6.47B6.78B6.94B8.01B7.86B
Stockholders Equity8.18B9.07B7.83B7.31B6.20B5.06B
Cash Flow
Free Cash Flow1.50B1.47B1.42B1.39B1.51B1.11B
Operating Cash Flow1.68B1.66B1.57B1.53B1.61B1.24B
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 Price31.12
Price Trends
50DMA
34.42
Negative
100DMA
35.82
Negative
200DMA
36.78
Negative
Market Momentum
MACD
-0.97
Negative
RSI
36.29
Neutral
STOCH
20.78
Neutral
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 31.12 is below the 20-day moving average (MA) of 31.66, below the 50-day MA of 34.42, and below the 200-day MA of 36.78, indicating a bearish trend. The MACD of -0.97 indicates Negative momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 20.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DASTY.

Dassault Systemes SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$25.47B50.1115.71%11.42%72.60%
75
Outperform
$60.43B60.5242.36%12.89%1.23%
70
Outperform
$59.51B103.086.66%14.21%-62.56%
68
Neutral
$41.29B32.9013.43%0.96%4.66%1.54%
68
Neutral
$34.09B55.55-47.82%16.66%34.26%
65
Neutral
$16.33B68.9423.69%0.47%10.45%-32.43%
61
Neutral
$35.62B7.50-10.94%1.87%8.86%-10.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DASTY
Dassault Systemes SA
31.12
-7.70
-19.84%
ADSK
Autodesk
285.95
27.72
10.73%
FICO
Fair Isaac
1,419.37
-293.92
-17.16%
WDAY
Workday
229.71
-32.65
-12.44%
PTC
PTC
216.53
39.42
22.26%
BSY
Bentley Systems
54.77
3.65
7.14%
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.Date of analysis: Aug 11, 2025