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Dassault Systemes SE ADR DASTY

Morningstar Rating
$47.13 +0.33 (0.69%)
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Company Report

Dassault Systèmes Earnings: Promising Subscription Growth Buoys Results

We maintain our EUR 37 fair value estimate for wide-moat Dassault Systèmes after the firm reported fourth-quarter results largely in line with our expectations. We are pleased with the firm’s progress in increasing subscription-based revenue, as we believe this will ultimately benefit long-term returns. Management provided 2024 and first-quarter targets, baking in guidance for softer license sales as the firm focuses on subscription conversions, as well as foreign-exchange headwinds. While the stock dropped around 10% on Feb. 1 due to the lower-than-expected guidance, we still view it as overvalued. Despite near-term headwinds, we think the firm is well positioned to benefit from the growing computer-assisted design and product lifecycle management markets, which we believe will hit $52 billion by 2032, indicating an 8% 10-year compound annual growth rate.

Price vs Fair Value

DASTY is trading within a range we consider fairly valued.
Price
$46.80
Fair Value
$23.00
Uncertainty
Medium
1-Star Price
$15.00
5-Star Price
$28.00
Economic Moat
Xpcl
Capital Allocation
Dbbjhnfrw

Bulls Say, Bears Say

Bulls

Dassault should see strong adoption of its 3DExperience platform, enabling margin expansion due to increasing switching costs.

Bears

Dassault is exposed to aircraft manufacturers, where order patterns can be volatile and could lead to a temporary softening of demand for the company's solutions.

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News

Trading Information

Previous Close Price
$46.80
Day Range
$47.1047.30
52-Week Range
$35.6251.69
Bid/Ask
$47.08 / $47.17
Market Cap
$61.95 Bil
Volume/Avg
3,218 / 55,569

Key Statistics

Price/Earnings (Normalized)
40.32
Price/Sales
9.94
Dividend Yield (Trailing)
0.48%
Dividend Yield (Forward)
0.48%
Total Yield
0.95%

Company Profile

Dassault Systèmes is a leading provider of computer-assisted design and product lifecycle management software, serving customers like Boeing and Tesla throughout the production process. The company’s top line largely depends on the transportation and mobility, industrial equipment, and aerospace and defense industries.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
25,377

Competitors

Valuation

Metric
DASTY
ANSS
PTC
Price/Earnings (Normalized)
40.3241.9041.32
Price/Book Value
7.465.377.84
Price/Sales
9.9412.8210.11
Price/Cash Flow
36.4936.8035.83
Price/Earnings
DASTY
ANSS
PTC

Financial Strength

Metric
DASTY
ANSS
PTC
Quick Ratio
1.422.250.99
Current Ratio
1.582.301.19
Interest Coverage
13.143.20
Quick Ratio
DASTY
ANSS
PTC

Profitability

Metric
DASTY
ANSS
PTC
Return on Assets (Normalized)
105.39%11.39%8.92%
Return on Equity (Normalized)
200.57%15.41%20.49%
Return on Invested Capital (Normalized)
141.54%13.55%13.83%
Return on Assets
DASTY
ANSS
PTC
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