Dassault Systemes (DSY) AI Stock Analysis

• Market Cap: €43.31B
• Dividend Yield: 0.8%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.89
• Revenue Growth: 4.49%
• EPS Growth: 8.84%
• Country: FR
• Employees: 26,225
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.89
• Shares Outstanding: 1,340,433,100
• 10 Day Avg. Volume: 1,784,616
• 30 Day Avg. Volume: 1,460,155
• 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: €37.05
• Price Target Upside: 15.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: €37.00 ▲(15.66%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

Growth Potential

Dassault has announced an extension in the mid-term target to FY29, implying a gradual acceleration in growth.

Strategic Deals

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

Analyst Recommendations

Analysts lower the price target to €28 and stay at Underperform.

Earnings Performance

Q1 licence revenue decreased by 10% year-over-year in constant currency, much below guidance.

Guidance and Targets

FY25 guidance tweaked, with margins lowered and total revenue growth expected at 6–8%.

Dassault Systemes Business Overview & Revenue Model

Company Description

Dassault Systèmes (DSY) is a global leader in 3D design, digital mock-up, and product lifecycle management (PLM) solutions. The company primarily operates across industries such as aerospace, defense, transportation, and industrial equipment. Its core products and services include the 3DEXPERIENCE platform, which integrates solutions for design and engineering, manufacturing and production, simulation, and governance and lifecycle.

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
	EBIT
1.36B	1.36B	1.30B	1.30B	1.02B	669.70M
	EBITDA
1.93B	1.92B	1.81B	1.96B	1.59B	1.29B
	Net Income Common Stockholders
1.17B	1.20B	1.05B	931.50M	773.70M	491.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.24B	3.95B	3.57B	2.77B	2.98B	2.15B
	Total Assets
15.34B	15.55B	14.62B	14.26B	14.22B	12.96B
	Total Debt
2.45B	2.49B	3.60B	3.58B	4.47B	4.83B
	Net Debt
-1.79B	-1.46B	32.60M	807.70M	1.49B	2.68B
	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: 31.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 31.99 is below the 20-day moving average (MA) of 33.08, below the 50-day MA of 33.04, and below the 200-day MA of 34.62, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 17.45 is Positive, 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	€43.31B	36.22	13.67%	0.80%	4.49%	8.84%
LSS	69 Neutral	€937.70M	30.14	7.91%	1.61%	10.28%	-8.66%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
QDT	62 Neutral	€535.47M	8.05	6.10%	4.13%	2.84%	-2.45%