Dassault Systemes SA (DASTY) AI Stock Analysis

• Market Cap: $37.45B
• Dividend Yield: 1.07%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.55
• 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: 0
• 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: 1.14
• Enterprise Value/Revenue: 6.76
• Enterprise Value/Gross Profit: 8.10
• Enterprise Value/Ebitda: 21.99
• 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: 68 Neutral
• Price Target: $29.00 ▲(3.61% Upside)

Dassault Systemes SA's overall stock score is driven by its strong financial performance and positive earnings call sentiment, highlighting growth in subscription revenue and significant contract wins. However, bearish technical indicators and moderate valuation metrics temper the score. Challenges in specific segments and cash flow concerns also weigh on the overall assessment.

Positive Factors

Subscription Revenue Growth

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

AI and Cloud Growth

Strong growth in cloud revenue indicates robust market adoption of Dassault's AI and cloud solutions, positioning the company well in the evolving tech landscape.

Partnership Expansion

The expanded partnership with Sanofi strengthens Dassault's position in the life sciences sector, potentially driving future growth through enhanced clinical research capabilities.

Negative Factors

Cash Flow Conversion Concerns

Decreased cash flow conversion may impact the company's ability to reinvest in growth opportunities, potentially affecting long-term financial health.

Upfront License Revenue Decline

The decline in upfront license revenue reflects a shift in business model, which may initially impact cash flow and require strategic adjustments.

Life Sciences Growth Challenges

Challenges in the Life Sciences segment, including a decline in growth, may hinder the company's diversification efforts and limit sector-specific expansion.

Dassault Systemes SA Business Overview & Revenue Model

Company Description

Dassault 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 Money

Dassault 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 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.

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.

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.

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	1.59B	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: Neutral
• Last Price: 27.99
• 50DMA: Negative
• 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 27.55, below the 50-day MA of 30.78, and below the 200-day MA of 35.21, indicating a neutral trend. The MACD of -0.91 indicates Negative momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 68.14 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	69 Neutral	$63.89B	58.51	40.33%	―	15.62%	2.59%
FICO	69 Neutral	$42.61B	67.71	―	―	15.91%	29.42%
WDAY	69 Neutral	$57.50B	90.41	7.34%	―	13.35%	-60.76%
DASTY	68 Neutral	$37.45B	28.57	13.80%	1.07%	5.22%	6.27%
PTC	67 Neutral	$20.72B	28.26	21.05%	―	19.18%	96.62%
BSY	67 Neutral	$12.48B	49.67	24.16%	0.66%	11.12%	-26.24%
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.