Dassault Systemes (DSY) AI Stock Analysis

• Market Cap: €38.48B
• Dividend Yield: 0.9%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 33.3
• Beta (1Y): 0.90
• Revenue Growth: 4.11%
• EPS Growth: 1.29%
• Country: FR
• Employees: 26,225
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.30
• Shares Outstanding: 1,341,456,000
• 10 Day Avg. Volume: 1,479,639
• 30 Day Avg. Volume: 1,681,723
• 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: €33.25
• Price Target Upside: 16.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: €31.00 ▲(8.77% Upside)

Dassault Systemes' strong financial performance is the primary driver of its overall stock score, supported by robust profitability and a solid balance sheet. Technical analysis presents mixed signals, with short-term strength but potential long-term weakness. Valuation metrics indicate the stock is priced for growth, typical for its industry. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Negative Factors

Dassault Systemes Business Overview & Revenue Model

Company Description

Dassault Systèmes (DSY) is a French multinational software company that specializes in 3D design, 3D digital mock-up, and product lifecycle management (PLM) software. Founded in 1981, the company serves a variety of industries, including aerospace, automotive, industrial equipment, consumer goods, and life sciences. Its core products include the 3DEXPERIENCE platform, which integrates various applications for design, engineering, simulation, and manufacturing, enabling companies to create and manage their products in a digital environment.

How the Company Makes Money

Dassault Systèmes generates revenue primarily through software licenses, subscription services, and support and consulting services. The company offers its software solutions through a combination of perpetual licenses and subscription-based models, allowing customers to pay for software access on a recurring basis. Key revenue streams include the sale of its 3DEXPERIENCE platform and associated applications, which are tailored to specific industries. Additionally, Dassault Systèmes earns income through maintenance and support subscriptions, which provide ongoing technical assistance and updates. The company also engages in partnerships with other technology firms and industry leaders to enhance its offerings and expand its market reach. This collaborative approach, along with continuous innovation in its product lines, contributes significantly to its overall earnings.

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, positioning the company favorably within the software application industry.

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	5.18B	5.20B	4.60B	4.75B	4.07B	3.70B
EBITDA	1.97B	1.92B	1.81B	1.96B	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	2.49B	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	-424.40M	-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 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.50
• 50DMA: Positive
• 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 FR:DSY, the sentiment is Neutral. The current price of 28.5 is above the 20-day moving average (MA) of 28.33, above the 50-day MA of 27.56, and below the 200-day MA of 32.68, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 41.81 is Neutral, 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	€38.48B	33.27	13.92%	0.90%	4.11%	1.29%
PLNW	70 Outperform	€1.46B	30.09	―	1.49%	13.17%	22.60%
74SW	66 Neutral	€1.09B	21.67	9.71%	―	103.99%	17.53%
VU	65 Neutral	€4.18B	―	-5.53%	0.24%	39.72%	63.70%
LSS	62 Neutral	€894.22M	29.26	9.61%	1.68%	5.07%	-4.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QDT	61 Neutral	€456.04M	7.19	5.80%	5.26%	0.13%	11.29%