DASSAULT SYSTEMES SE (DSY.PA) Stock Fundamental Analysis
EPA:DSY - Euronext Paris - Matif - FR0014003TT8 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to DSY. DSY was compared to 99 industry peers in the Software industry. DSY scores excellent on profitability, but there are some minor concerns on its financial health. DSY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DSY was profitable.
In the past year DSY had a positive cash flow from operations.
In the past 5 years DSY has always been profitable.
Each year in the past 5 years DSY had a positive operating cash flow.
1.2 Ratios
DSY has a better Return On Assets (11.10%) than 87.88% of its industry peers.
Looking at the Return On Equity, with a value of 19.03%, DSY is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
DSY has a Return On Invested Capital of 13.29%. This is amongst the best in the industry. DSY outperforms 85.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 19.03% | ||
| ROIC | 13.29% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DSY has a Profit Margin of 18.80%. This is amongst the best in the industry. DSY outperforms 82.83% of its industry peers.
In the last couple of years the Profit Margin of DSY has grown nicely.
DSY has a Operating Margin of 21.52%. This is amongst the best in the industry. DSY outperforms 81.82% of its industry peers.
DSY's Operating Margin has been stable in the last couple of years.
DSY has a better Gross Margin (83.51%) than 80.81% of its industry peers.
DSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.52% | ||
| PM (TTM) | 18.8% | ||
| GM | 83.51% |
OM growth 3Y0.4%
OM growth 5Y0.75%
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 just above the Cost of Capital (WACC), so DSY is still creating some value.
There is no outstanding debt for DSY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
DSY has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
DSY has a better Debt to FCF ratio (1.70) than 74.75% of its industry peers.
DSY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.23, DSY is doing good in the industry, outperforming 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.68
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.87 indicates that DSY should not have too much problems paying its short term obligations.
DSY has a better Current ratio (1.87) than 74.75% of its industry peers.
A Quick Ratio of 1.87 indicates that DSY should not have too much problems paying its short term obligations.
DSY's Quick ratio of 1.87 is fine compared to the rest of the industry. DSY outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
DSY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.50%.
The Earnings Per Share has been growing by 11.94% on average over the past years. This is quite good.
Looking at the last year, DSY shows a small growth in Revenue. The Revenue has grown by 4.16% in the last year.
DSY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
EPS 1Y (TTM)7.5%
EPS 3Y10.43%
EPS 5Y11.94%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y8.53%
Revenue growth 5Y9.11%
Sales Q2Q%6.74%
3.2 Future
DSY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.05% yearly.
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
EPS Next Y8.62%
EPS Next 2Y8.84%
EPS Next 3Y9.73%
EPS Next 5Y8.05%
Revenue Next Year8.2%
Revenue Next 2Y8.41%
Revenue Next 3Y8.77%
Revenue Next 5Y9.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.54, DSY can be considered very expensive at the moment.
73.74% of the companies in the same industry are more expensive than DSY, based on the Price/Earnings ratio.
DSY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 28.12, which means the current valuation is very expensive for DSY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DSY indicates a somewhat cheap valuation: DSY is cheaper than 61.62% of the companies listed in the same industry.
DSY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 28.12 |
4.2 Price Multiples
61.62% of the companies in the same industry are more expensive than DSY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DSY is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.96 | ||
| EV/EBITDA | 20.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DSY may justify a higher PE ratio.
PEG (NY)3.54
PEG (5Y)2.56
EPS Next 2Y8.84%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, DSY is not a good candidate for dividend investing.
DSY's Dividend Yield is a higher than the industry average which is at 2.93.
Compared to an average S&P500 Dividend Yield of 2.33, DSY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of DSY grows each year by 48.09%, which is quite nice.
Dividend Growth(5Y)48.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
17.54% of the earnings are spent on dividend by DSY. This is a low number and sustainable payout ratio.
The dividend of DSY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.54%
EPS Next 2Y8.84%
EPS Next 3Y9.73%
EPA:DSY (3/7/2025, 7:00:00 PM)
39.4
-1.03 (-2.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners22.33%
Inst Owner ChangeN/A
Ins Owners8.11%
Ins Owner ChangeN/A
Market Cap52.73B
Analysts72.41
Price Target42.8 (8.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.21
Dividend Growth(5Y)48.09%
DP17.54%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.65%
Min EPS beat(2)0.55%
Max EPS beat(2)0.75%
EPS beat(4)3
Avg EPS beat(4)0.65%
Min EPS beat(4)-1.81%
Max EPS beat(4)3.1%
EPS beat(8)6
Avg EPS beat(8)0.59%
EPS beat(12)10
Avg EPS beat(12)2.22%
EPS beat(16)14
Avg EPS beat(16)3.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-1.28%
Revenue beat(4)0
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)-1.28%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)4
Avg Revenue beat(12)14.79%
Revenue beat(16)7
Avg Revenue beat(16)22.8%
PT rev (1m)7.71%
PT rev (3m)8.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 28.12 | ||
| P/S | 5.75 | ||
| P/FCF | 35.96 | ||
| P/OCF | 31.77 | ||
| P/B | 5.82 | ||
| P/tB | 38.23 | ||
| EV/EBITDA | 20.22 |
EPS(TTM)1.29
EY3.27%
EPS(NY)1.4
Fwd EY3.56%
FCF(TTM)1.1
FCFY2.78%
OCF(TTM)1.24
OCFY3.15%
SpS6.86
BVpS6.77
TBVpS1.03
PEG (NY)3.54
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 19.03% | ||
| ROCE | 16.42% | ||
| ROIC | 13.29% | ||
| ROICexc | 19.79% | ||
| ROICexgc | 415.29% | ||
| OM | 21.52% | ||
| PM (TTM) | 18.8% | ||
| GM | 83.51% | ||
| FCFM | 15.98% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.4%
OM growth 5Y0.75%
PM growth 3Y6.66%
PM growth 5Y4.75%
GM growth 3Y-0.04%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 34.47% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.45% | ||
| Profit Quality | 84.97% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | N/A |
F-Score6
WACC7.92%
ROIC/WACC1.68
Cap/Depr(3y)27.3%
Cap/Depr(5y)24.28%
Cap/Sales(3y)2.63%
Cap/Sales(5y)2.58%
Profit Quality(3y)135.6%
Profit Quality(5y)165.77%
High Growth Momentum
Growth
EPS 1Y (TTM)7.5%
EPS 3Y10.43%
EPS 5Y11.94%
EPS Q2Q%11.11%
EPS Next Y8.62%
EPS Next 2Y8.84%
EPS Next 3Y9.73%
EPS Next 5Y8.05%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y8.53%
Revenue growth 5Y9.11%
Sales Q2Q%6.74%
Revenue Next Year8.2%
Revenue Next 2Y8.41%
Revenue Next 3Y8.77%
Revenue Next 5Y9.1%
EBIT growth 1Y3.99%
EBIT growth 3Y8.97%
EBIT growth 5Y9.93%
EBIT Next Year19.51%
EBIT Next 3Y17.61%
EBIT Next 5Y15.72%
FCF growth 1Y3.28%
FCF growth 3Y-0.96%
FCF growth 5Y6.16%
OCF growth 1Y6.04%
OCF growth 3Y0.95%
OCF growth 5Y6.95%