Dassault Systemes (DSY) AI Stock Analysis

• Market Cap: €44.53B
• Dividend Yield: 0.69%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.85
• Revenue Growth: 4.49%
• EPS Growth: 8.84%
• Country: FR
• Employees: 26,225
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Application
• EPS (TTM): 0.89
• Shares Outstanding: 1,340,433,100
• 10 Day Avg. Volume: 1,361,153
• 30 Day Avg. Volume: 1,696,651
• PEG Ratio: 4.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €36.50
• Price Target Upside: 8.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Dassault Systemes is fundamentally strong with impressive profitability and cash flow metrics. However, technical indicators point to a bearish trend, and the high P/E ratio indicates potential overvaluation. Despite low dividend yield, the company remains financially stable, appealing for long-term growth but less so for immediate gains.

Positive Factors

Strategic Customers

Signing strategic customers gives these results a more positive feel than prior periods.

Subscription Growth

Subscription growth accelerated sequentially to 14% in Q1.

Negative Factors

Contract Structures

Dassault's contract structures leave it with a less attractive business model relative to peers.

Financial Performance

1Q25 results missed the mid point of guidance for the 5th time in 6 quarters.

Revenue Growth

Dassault reported soft 1Q results, with 4% revenue growth and guided 2Q revenue growth to 5%, below consensus at 7%.

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

Overall, Dassault Systemes presents a robust financial profile with strong profitability, efficient cash flow management, and a stable balance sheet with low leverage. The company is well-positioned for sustainable growth, though further optimization of asset utilization could enhance returns.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.21B	5.95B	5.67B	4.86B	4.45B
	Gross Profit
5.20B	4.60B	4.75B	4.07B	3.70B
	EBIT
1.36B	1.30B	1.30B	1.02B	669.70M
	EBITDA
1.92B	1.81B	1.96B	1.59B	1.29B
	Net Income Common Stockholders
1.20B	1.05B	931.50M	773.70M	491.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.95B	3.57B	2.77B	2.98B	2.15B
	Total Assets
15.55B	14.62B	14.26B	14.22B	12.96B
	Total Debt
2.49B	3.60B	3.58B	4.47B	4.83B
	Net Debt
-1.46B	32.60M	807.70M	1.49B	2.68B
	Total Liabilities
6.47B	6.78B	6.94B	8.01B	7.86B
	Stockholders Equity
9.07B	7.83B	7.31B	6.20B	5.06B
Cash Flow		Free Cash Flow
1.47B	1.42B	1.39B	1.51B	1.11B
	Operating Cash Flow
1.66B	1.57B	1.53B	1.61B	1.24B
	Investing Cash Flow
-191.70M	-161.60M	-213.90M	-160.40M	-208.00M
	Financing Cash Flow
-1.21B	-536.70M	-1.59B	-711.90M	-741.90M

Dassault Systemes Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.69
• 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 Neutral. The current price of 33.69 is above the 20-day moving average (MA) of 32.91, below the 50-day MA of 35.71, and below the 200-day MA of 34.96, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 83.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€44.53B	37.23	13.67%	0.69%	4.49%	8.84%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%