Dassault Systemes (DSY) AI Stock Analysis

• Market Cap: €42.07B
• Dividend Yield: 0.83%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 35.1
• Beta (1Y): 0.88
• Revenue Growth: 4.49%
• EPS Growth: 8.84%
• Country: FR
• Employees: 26,225
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.32
• Shares Outstanding: 1,344,379,800
• 10 Day Avg. Volume: 1,713,734
• 30 Day Avg. Volume: 1,664,651
• PEG Ratio: 2.32
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.55
• 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: €36.95
• Price Target Upside: 18.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: €37.00 ▲(18.55%Upside)

The overall score reflects Dassault Systemes' strong financial performance, which is the most significant factor, indicating stable expansion and robust profitability. Technical analysis suggests caution with mixed trends, and valuation indicates potential overvaluation with a modest dividend yield. These factors combine to form a balanced but cautious outlook.

Positive Factors

Revenue Growth

3DEXPERIENCE revenues increased by 17%, largely driven by major deals signings in Aerospace & Defence, High Tech, and Transport & Mobility.

Subscription Growth

Subscription growth accelerated sequentially to 14% in Q1.

Negative Factors

Financial Performance

Dassault Q1 results were slightly below expectations with revenue and operating profit 1% and 2% below consensus.

Market Conditions

Ongoing tough market conditions with macro volatility are undermining customer decisions.

Product Traction

There is no early sign that Gen 7 products will act as an accelerator for clients to move to 3DExperience.

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 and subscriptions, services, and maintenance fees. The company offers a range of software solutions under its 3DEXPERIENCE platform, which clients across various industries adopt for product design, simulation, and lifecycle management. A significant portion of its revenue is derived from recurring software subscription fees, providing a stable income stream. Additionally, Dassault Systèmes benefits from strategic partnerships and collaborations with industry leaders, enhancing its market presence and driving sales growth. The company also earns from consulting services, training programs, and support services, further contributing to its revenue.

Dassault Systemes Financial Statement Overview

Summary

Dassault Systemes presents a robust financial profile with strong profitability, efficient cash flow management, and a stable balance sheet with low leverage. The company's consistent gross profit margin above 80% and a net profit margin improving to 18.7% are key strengths, along with a healthy revenue growth rate of 5.6% year-over-year.

Income Statement

Dassault Systemes shows strong profitability with a consistent gross profit margin of over 80% and a net profit margin that has improved to approximately 18.7% in the TTM. The revenue growth rate is healthy at 5.6% year-over-year, indicating stable expansion. EBIT and EBITDA margins remain robust, reflecting effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio of 0.27, indicating low leverage and financial stability. The return on equity has improved to 13.1%, which is strong for the industry. The equity ratio at 58.4% suggests a balanced capital structure, though there is room to enhance asset efficiency.

Cash Flow

Dassault Systemes demonstrates strong cash flow management with a free cash flow growth rate of 9.8% in the TTM. The operating cash flow to net income ratio is 1.53, reflecting efficient cash generation relative to earnings. The free cash flow to net income ratio of 1.37 further underscores the company's ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.29B	6.21B	5.95B	5.67B	4.86B	4.45B
Gross Profit	5.07B	5.20B	4.60B	4.75B	4.07B	3.70B
EBITDA	1.93B	1.92B	1.81B	1.96B	1.59B	1.29B
Net Income	1.17B	1.20B	1.05B	931.50M	773.70M	491.00M
Balance Sheet
Total Assets	15.34B	15.55B	14.62B	14.26B	14.22B	12.96B
Cash, Cash Equivalents and Short-Term Investments	4.24B	3.95B	3.57B	2.77B	2.98B	2.15B
Total Debt	2.45B	2.49B	3.60B	3.58B	4.47B	4.83B
Total Liabilities	6.37B	6.47B	6.78B	6.94B	8.01B	7.86B
Stockholders Equity	8.95B	9.07B	7.83B	7.31B	6.20B	5.06B
Cash Flow
Free Cash Flow	1.61B	1.47B	1.42B	1.39B	1.51B	1.11B
Operating Cash Flow	1.80B	1.66B	1.57B	1.53B	1.61B	1.24B
Investing Cash Flow	-440.10M	-191.70M	-161.60M	-213.90M	-160.40M	-208.00M
Financing Cash Flow	-1.21B	-1.21B	-536.70M	-1.59B	-711.90M	-741.90M

Dassault Systemes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.21
• 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 31.21 is below the 20-day moving average (MA) of 31.33, below the 50-day MA of 32.40, and below the 200-day MA of 34.33, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 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	72 Outperform	€42.07B	35.08	13.67%	0.83%	4.49%	8.84%
Sector *	63 Neutral	£566.00M	24.41	-6.00%	2.49%	3.52%	-29.29%
0P5L		€1.14B	23.51	8.92%	―	―	―
0IVJ		€935.81M	30.02	7.91%	1.41%	―	―
0NQ5		€552.59M	8.29	6.10%	4.03%	―	―
0OA4		€4.20B	―	-10.50%	0.24%	―	―
PLNW		€1.65B	38.37		1.32%	―	―