DASSAULT SYSTEMES SE (DSY.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:DSY - FR0014003TT8 - Common Stock
23.93 EUR
+0.26 (+1.1%)
We assign a fundamental rating of 5 out of 10 to DSY. DSY was compared to 114 industry peers in the Software industry. DSY scores excellent on profitability, but there are some minor concerns on its financial health. DSY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year DSY was profitable.
- DSY had a positive operating cash flow in the past year.
- DSY had positive earnings in each of the past 5 years.
- DSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.81%, DSY belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 20.12%, DSY is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.13%, DSY belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
- DSY had an Average Return On Invested Capital over the past 3 years of 9.13%. This is below the industry average of 13.49%.
- The last Return On Invested Capital (15.13%) for DSY is above the 3 year average (9.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.81% | ||
| ROE | 20.12% | ||
| ROIC | 15.13% |
ROA(3y)7.15%
ROA(5y)6.13%
ROE(3y)13.13%
ROE(5y)12.32%
ROIC(3y)9.13%
ROIC(5y)8.14%
1.3 Margins
- With a decent Profit Margin value of 17.88%, DSY is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- In the last couple of years the Profit Margin of DSY has grown nicely.
- With a decent Operating Margin value of 20.60%, DSY is doing good in the industry, outperforming 71.93% of the companies in the same industry.
- DSY's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 83.50%, DSY is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
- In the last couple of years the Gross Margin of DSY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.6% | ||
| PM (TTM) | 17.88% | ||
| GM | 83.5% |
OM growth 3Y0.8%
OM growth 5Y0.99%
PM growth 3Y6.66%
PM growth 5Y4.75%
GM growth 3Y-0.04%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DSY is creating value.
- Compared to 1 year ago, DSY has about the same amount of shares outstanding.
- DSY has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DSY has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of DSY is 1.76, which is an excellent value as it means it would take DSY, only 1.76 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DSY (1.76) is better than 62.28% of its industry peers.
- DSY has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.14, DSY is in the better half of the industry, outperforming 67.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.84
WACC8.23%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that DSY should not have too much problems paying its short term obligations.
- DSY has a Current ratio (1.55) which is comparable to the rest of the industry.
- DSY has a Quick Ratio of 1.55. This is a normal value and indicates that DSY is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.55, DSY perfoms like the industry average, outperforming 57.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- DSY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.80%.
- The Earnings Per Share has been growing by 11.94% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 3.53% in the past year.
- The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)4.8%
EPS 3Y10.43%
EPS 5Y11.94%
EPS Q2Q%0%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y8.53%
Revenue growth 5Y9.11%
Sales Q2Q%-0.26%
3.2 Future
- The Earnings Per Share is expected to grow by 6.35% on average over the next years.
- Based on estimates for the next years, DSY will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y2.45%
EPS Next 2Y3.1%
EPS Next 3Y4.93%
EPS Next 5Y6.35%
Revenue Next Year1.37%
Revenue Next 2Y3.02%
Revenue Next 3Y4.2%
Revenue Next 5Y5.49%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.27 indicates a rather expensive valuation of DSY.
- DSY's Price/Earnings ratio is rather cheap when compared to the industry. DSY is cheaper than 82.46% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DSY to the average of the S&P500 Index (28.60), we can say DSY is valued slightly cheaper.
- A Price/Forward Earnings ratio of 17.45 indicates a rather expensive valuation of DSY.
- Based on the Price/Forward Earnings ratio, DSY is valued a bit cheaper than 77.19% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DSY to the average of the S&P500 Index (25.83), we can say DSY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
- 72.81% of the companies in the same industry are more expensive than DSY, based on the Enterprise Value to EBITDA ratio.
- 78.07% of the companies in the same industry are more expensive than DSY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DSY does not grow enough to justify the current Price/Earnings ratio.
- DSY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.45
PEG (5Y)1.53
EPS Next 2Y3.1%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
- DSY has a Yearly Dividend Yield of 1.10%.
- DSY's Dividend Yield is a higher than the industry average which is at 0.68.
- Compared to the average S&P500 Dividend Yield of 1.82, DSY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
- The dividend of DSY is nicely growing with an annual growth rate of 12.07%!
Dividend Growth(5Y)12.07%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 20.50% of the earnings are spent on dividend by DSY. This is a low number and sustainable payout ratio.
- DSY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.5%
EPS Next 2Y3.1%
EPS Next 3Y4.93%
DASSAULT SYSTEMES SE / DSY.PA FAQ
What is the fundamental rating for DSY stock?
ChartMill assigns a fundamental rating of 5 / 10 to DSY.PA.
Can you provide the valuation status for DASSAULT SYSTEMES SE?
ChartMill assigns a valuation rating of 5 / 10 to DASSAULT SYSTEMES SE (DSY.PA). This can be considered as Fairly Valued.
How profitable is DASSAULT SYSTEMES SE (DSY.PA) stock?
DASSAULT SYSTEMES SE (DSY.PA) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for DSY stock?
The Earnings per Share (EPS) of DASSAULT SYSTEMES SE (DSY.PA) is expected to grow by 2.45% in the next year.
Is the dividend of DASSAULT SYSTEMES SE sustainable?
The dividend rating of DASSAULT SYSTEMES SE (DSY.PA) is 4 / 10 and the dividend payout ratio is 20.5%.