Dassault Systèmes (ENXTPA:DSY) - Share price, News & Analysis

Q: What is the Fair Price of DSY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DSY (€42.75) is trading above our estimate of [[fair value]] (€30.72)

DSY fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

DSY Stock Overview

Dassault Systèmes SE provides software solutions and services worldwide.

Rewards

Earnings are forecast to grow 18.13% per year

Earnings have grown 8.7% per year over the past 5 years

Risk Analysis

No risks detected for DSY from our risk checks.

Dassault Systèmes Competitors

Lectra

ENXTPA:LSS

€1.4b

Esker

ENXTPA:ALESK

€876.4m

Capgemini

ENXTPA:CAP

€32.3b

Axway Software

ENXTPA:AXW

€418.1m

Price History & Performance

Summary of all time highs, changes and price drops for Dassault Systèmes
Historical stock prices
Current Share Price	€42.75
52 Week High	€56.82
52 Week Low	€33.16
Beta	0.75
1 Month Change	15.46%
3 Month Change	12.19%
1 Year Change	-10.73%
3 Year Change	67.65%
5 Year Change	158.28%
Change since IPO	3,147.21%

Recent News & Updates

Jul 18

Dassault Systèmes (EPA:DSY) Seems To Use Debt Rather Sparingly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 03

Calculating The Fair Value Of Dassault Systèmes SE (EPA:DSY)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Dassault Systèmes SE...

May 16

Here's Why I Think Dassault Systèmes (EPA:DSY) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	DSY	FR Software	FR Market
7D	1.8%	0.3%	0.3%
1Y	-10.7%	-11.7%	-6.3%

Return vs Industry: DSY matched the French Software industry which returned -11.7% over the past year.

Return vs Market: DSY underperformed the French Market which returned -6.3% over the past year.

Price Volatility

Is DSY's price volatile compared to industry and market?
DSY volatility
DSY Average Weekly Movement	4.4%
Software Industry Average Movement	5.3%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.8%

Stable Share Price: DSY is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DSY's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	21,000	Bernard Charles	https://www.3ds.com

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.

Dassault Systèmes Fundamentals Summary

How do Dassault Systèmes's earnings and revenue compare to its market cap?
DSY fundamental statistics
Market Cap	€56.17b
Earnings (TTM)	€804.90m
Revenue (TTM)	€5.23b

69.8x

P/E Ratio

10.7x

P/S Ratio

Is DSY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSY income statement (TTM)
Revenue	€5.23b
Cost of Revenue	€839.60m
Gross Profit	€4.40b
Other Expenses	€3.59b
Earnings	€804.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 26, 2022

Earnings per share (EPS)	0.61
Gross Margin	83.96%
Net Profit Margin	15.38%
Debt/Equity Ratio	52.0%

How did DSY perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is DSY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DSY?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DSY. This is calculated by dividing DSY's market cap by their current preferred multiple.
What is DSY's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€56.17b

DSY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.8x
Enterprise Value/EBITDA	44x
PEG Ratio	3.8x

Price to Earnings Ratio vs Peers

How does DSY's PE Ratio compare to its peers?

DSY PE Ratio vs Peers

The above table shows the PE ratio for DSY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	40x
LSS Lectra	34.3x	14.5%	€1.4b
ALESK Esker	61.4x	17.5%	€876.4m
CAP Capgemini	23.4x	14.6%	€32.3b
AXW Axway Software	40.9x	28.9%	€418.1m
DSY Dassault Systèmes	69.8x	18.1%	€56.2b

Price-To-Earnings vs Peers: DSY is expensive based on its Price-To-Earnings Ratio (69.8x) compared to the peer average (40x).

Price to Earnings Ratio vs Industry

How does DSY's PE Ratio compare vs other companies in the European Software Industry?

Price-To-Earnings vs Industry: DSY is expensive based on its Price-To-Earnings Ratio (69.8x) compared to the French Software industry average (35.5x)

Price to Earnings Ratio vs Fair Ratio

What is DSY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DSY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	69.8x
Fair PE Ratio	38.8x

Price-To-Earnings vs Fair Ratio: DSY is expensive based on its Price-To-Earnings Ratio (69.8x) compared to the estimated Fair Price-To-Earnings Ratio (38.8x).

Share Price vs Fair Value

What is the Fair Price of DSY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DSY (€42.75) is trading above our estimate of fair value (€30.72)

Significantly Below Fair Value: DSY is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Dassault Systèmes forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSY's forecast earnings growth (18.1% per year) is above the savings rate (0.3%).

Earnings vs Market: DSY's earnings (18.1% per year) are forecast to grow faster than the French market (11.5% per year).

High Growth Earnings: DSY's earnings are forecast to grow, but not significantly.

Revenue vs Market: DSY's revenue (10.2% per year) is forecast to grow faster than the French market (5.2% per year).

High Growth Revenue: DSY's revenue (10.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DSY's Return on Equity is forecast to be low in 3 years time (19.4%).

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Past Performance

How has Dassault Systèmes performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DSY has high quality earnings.

Growing Profit Margin: DSY's current net profit margins (15.4%) are higher than last year (14.2%).

Past Earnings Growth Analysis

Earnings Trend: DSY's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: DSY's earnings growth over the past year (23.3%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: DSY earnings growth over the past year (23.3%) underperformed the Software industry 23.5%.

Return on Equity

High ROE: DSY's Return on Equity (11.5%) is considered low.

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Financial Health

How is Dassault Systèmes's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DSY's short term assets (€4.8B) exceed its short term liabilities (€3.3B).

Long Term Liabilities: DSY's short term assets (€4.8B) exceed its long term liabilities (€4.2B).

Debt to Equity History and Analysis

Debt Level: DSY's net debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: DSY's debt to equity ratio has increased from 26.4% to 52% over the past 5 years.

Debt Coverage: DSY's debt is well covered by operating cash flow (44.7%).

Interest Coverage: DSY's interest payments on its debt are well covered by EBIT (112.2x coverage).

Balance Sheet

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Dividend

What is Dassault Systèmes's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DSY's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.68%).

High Dividend: DSY's dividend (0.4%) is low compared to the top 25% of dividend payers in the French market (5.22%).

Stability and Growth of Payments

Stable Dividend: DSY is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: DSY is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: DSY is not paying a notable dividend for the French market.

Cash Payout to Shareholders

Cash Flow Coverage: DSY is not paying a notable dividend for the French market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure

CEO

Bernard Charles (65 yo)

20.58yrs

Tenure

€3,229,827

Compensation

Mr. Bernard S. Charles has been the Chief Executive Officer at Dassault Systèmes SE since 2002 and has been its Vice Chairman since May 2016. He has been the Chairman & Chief Executive Officer of Exa Corpo...

CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD3.31M) is about average for companies of similar size in the French market ($USD3.99M).

Compensation vs Earnings: Bernard's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: DSY's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: DSY's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31