Dassault Systemes (DSY) AI Stock Analysis

• Market Cap: €31.75B
• Dividend Yield: 1.1%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.89
• Revenue Growth: 3.38%
• EPS Growth: 4.62%
• Country: FR
• Employees: 26,225
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.29
• Shares Outstanding: 1,341,456,000
• 10 Day Avg. Volume: 1,511,633
• 30 Day Avg. Volume: 1,638,826
• PEG Ratio: 2.67
• Price to Book (P/B): 4.85
• Price to Sales (P/S): 7.08
• P/FCF Ratio: 30.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €28.79
• Price Target Upside: 21.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €26.00 ▲(9.84% Upside)

Dassault Systemes' strong financial performance is offset by technical indicators suggesting bearish trends and a high valuation. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Profitability

High profit margins indicate efficient cost management and strong pricing power, supporting long-term financial stability and shareholder value.

Strategic Partnerships

Expanding partnerships enhance product offerings and market reach, fostering innovation and strengthening competitive positioning in the industry.

Healthy Balance Sheet

A strong balance sheet with low leverage provides financial flexibility, enabling strategic investments and resilience against economic downturns.

Negative Factors

Decline in Revenue Growth

Slowing revenue growth may indicate challenges in market expansion or product adoption, potentially impacting long-term growth prospects.

Decline in Free Cash Flow

A significant decline in free cash flow can constrain investment capacity and limit the ability to fund growth initiatives or return capital to shareholders.

High Valuation Concerns

A high valuation may limit upside potential and increase vulnerability to market corrections, impacting investor sentiment and stock performance.

Dassault Systemes 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 generates revenue primarily through software licenses, subscription services, and support agreements. The company's revenue model is largely subscription-based, allowing clients to access its software products and services over time rather than through one-time purchases. Key revenue streams include licensing fees for its software solutions, recurring subscription fees from the 3DEXPERIENCE platform, and professional services such as consulting and training. Additionally, Dassault Systèmes benefits from strategic partnerships with major companies across various industries, which enhance its product offerings and expand its market reach. The company's focus on innovation and investment in research and development also contribute to its ability to attract new clients and retain existing ones.

Dassault Systemes Financial Statement Overview

Summary

Dassault Systemes exhibits strong financial health with robust profitability and a solid balance sheet. The company has demonstrated impressive revenue growth and maintains efficient operational margins. While cash flow metrics show some areas for improvement, the overall financial position remains stable and well-managed.

Income Statement

Dassault Systemes demonstrates strong profitability with a high gross profit margin of 82.05% and a solid net profit margin of 17.99% for TTM. The company has shown consistent revenue growth, with a notable 41.2% increase in the latest TTM period. EBIT and EBITDA margins are robust at 22.45% and 31.22%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a healthy financial position with a manageable debt-to-equity ratio of 0.31, indicating low leverage. Return on equity is stable at 13.29%, showcasing effective use of shareholder funds. The equity ratio stands at 56.76%, highlighting a strong equity base. However, the slight increase in total debt over the past year warrants monitoring.

Cash Flow

Operating cash flow to net income ratio is moderate at 0.50, and free cash flow to net income ratio is strong at 0.89, indicating good cash conversion. However, the free cash flow growth rate has declined by 7.07% in the TTM period, suggesting potential challenges in cash generation. Despite this, the company maintains a solid free cash flow position.

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	5.11B	5.20B	4.60B	4.75B	4.07B	3.70B
EBITDA	2.02B	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	14.15B	15.55B	14.62B	14.26B	14.22B	12.96B
Cash, Cash Equivalents and Short-Term Investments	3.91B	3.95B	3.57B	2.77B	2.98B	2.15B
Total Debt	2.59B	3.06B	3.60B	3.58B	4.47B	4.83B
Total Liabilities	5.84B	6.47B	6.78B	6.94B	8.01B	7.86B
Stockholders Equity	8.31B	9.07B	7.83B	7.31B	6.20B	5.06B
Cash Flow
Free Cash Flow	1.47B	1.47B	1.42B	1.39B	1.51B	1.11B
Operating Cash Flow	1.65B	1.66B	1.57B	1.53B	1.61B	1.24B
Investing Cash Flow	-633.30M	-191.70M	-161.60M	-213.90M	-160.40M	-208.00M
Financing Cash Flow	-641.70M	-1.21B	-536.70M	-1.59B	-711.90M	-741.90M

Dassault Systemes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.67
• 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 FR:DSY, the sentiment is Negative. The current price of 23.67 is above the 20-day moving average (MA) of 23.63, below the 50-day MA of 24.60, and below the 200-day MA of 29.42, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 91.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:DSY.

Dassault Systemes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSY	67 Neutral	€31.75B	26.58	14.37%	1.10%	3.38%	4.62%
PLNW	67 Neutral	€1.59B	32.55	―	1.37%	13.17%	22.60%
QDT	67 Neutral	€493.70M	7.79	5.80%	4.90%	0.13%	11.29%
LSS	64 Neutral	€884.76M	31.50	8.16%	1.76%	0.40%	-9.67%
74SW	62 Neutral	€1.15B	23.40	9.71%	―	103.99%	17.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VU	60 Neutral	€3.40B	-244.23	-5.53%	0.31%	39.72%	63.70%