DASSAULT SYSTEMES SE (DSY.PA)

FR0014003TT8 - Common Stock

38.51  +0.41 (+1.08%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to DSY. DSY was compared to 97 industry peers in the Software industry. While DSY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DSY is valied quite expensively at the moment, while it does show a decent growth rate.



8

1. Profitability

1.1 Basic Checks

DSY had positive earnings in the past year.
In the past year DSY had a positive cash flow from operations.
DSY had positive earnings in each of the past 5 years.
In the past 5 years DSY always reported a positive cash flow from operatings.

1.2 Ratios

DSY has a better Return On Assets (10.60%) than 86.21% of its industry peers.
The Return On Equity of DSY (19.78%) is better than 81.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.76%, DSY belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DSY is below the industry average of 11.12%.
The 3 year average ROIC (8.26%) for DSY is below the current ROIC(12.76%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.6%
ROE 19.78%
ROIC 12.76%
ROA(3y)6.39%
ROA(5y)5.48%
ROE(3y)12.88%
ROE(5y)12.03%
ROIC(3y)8.26%
ROIC(5y)7.06%

1.3 Margins

DSY has a better Profit Margin (17.59%) than 78.16% of its industry peers.
In the last couple of years the Profit Margin of DSY has grown nicely.
Looking at the Operating Margin, with a value of 21.56%, DSY belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
In the last couple of years the Operating Margin of DSY has remained more or less at the same level.
DSY's Gross Margin of 83.57% is fine compared to the rest of the industry. DSY outperforms 78.16% of its industry peers.
In the last couple of years the Gross Margin of DSY has remained more or less at the same level.
Industry RankSector Rank
OM 21.56%
PM (TTM) 17.59%
GM 83.57%
OM growth 3Y10.2%
OM growth 5Y-1.22%
PM growth 3Y16.99%
PM growth 5Y1.52%
GM growth 3Y0.21%
GM growth 5Y-0.38%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DSY is creating value.
Compared to 1 year ago, DSY has about the same amount of shares outstanding.
The number of shares outstanding for DSY has been increased compared to 5 years ago.
The debt/assets ratio for DSY has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 6.33 indicates that DSY is not in any danger for bankruptcy at the moment.
DSY has a better Altman-Z score (6.33) than 78.16% of its industry peers.
The Debt to FCF ratio of DSY is 2.11, which is a good value as it means it would take DSY, 2.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.11, DSY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that DSY is not too dependend on debt financing.
DSY has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 2.11
Altman-Z 6.33
ROIC/WACC1.82
WACC7.02%

2.3 Liquidity

DSY has a Current Ratio of 1.62. This is a normal value and indicates that DSY is financially healthy and should not expect problems in meeting its short term obligations.
DSY has a Current ratio (1.62) which is in line with its industry peers.
DSY has a Quick Ratio of 1.62. This is a normal value and indicates that DSY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DSY (1.62) is better than 63.22% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.62

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.19% over the past year.
The Earnings Per Share has been growing by 14.64% on average over the past years. This is quite good.
DSY shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
The Revenue has been growing by 11.35% on average over the past years. This is quite good.
EPS 1Y (TTM)6.19%
EPS 3Y16.75%
EPS 5Y14.64%
EPS growth Q2Q5.88%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y10.16%
Revenue growth 5Y11.35%
Revenue growth Q2Q3.76%

3.2 Future

Based on estimates for the next years, DSY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.42% on average per year.
The Revenue is expected to grow by 8.85% on average over the next years. This is quite good.
EPS Next Y8.6%
EPS Next 2Y9.39%
EPS Next 3Y9.94%
EPS Next 5Y10.42%
Revenue Next Year7.49%
Revenue Next 2Y8.4%
Revenue Next 3Y8.82%
Revenue Next 5Y8.85%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 32.09, the valuation of DSY can be described as expensive.
72.41% of the companies in the same industry are more expensive than DSY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DSY to the average of the S&P500 Index (24.75), we can say DSY is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.55 indicates a quite expensive valuation of DSY.
DSY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DSY to the average of the S&P500 Index (21.23), we can say DSY is valued slightly more expensively.
Industry RankSector Rank
PE 32.09
Fwd PE 29.55

4.2 Price Multiples

DSY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DSY is valued a bit cheaper than the industry average as 60.92% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 35.68
EV/EBITDA 19.92

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DSY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.73
PEG (5Y)2.19
EPS Next 2Y9.39%
EPS Next 3Y9.94%

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.60%, DSY is not a good candidate for dividend investing.
DSY's Dividend Yield is a higher than the industry average which is at 2.44.
With a Dividend Yield of 0.60, DSY pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 0.6%

5.2 History

The dividend of DSY is nicely growing with an annual growth rate of 48.09%!
Dividend Growth(5Y)48.09%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

17.82% 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.
DP17.82%
EPS Next 2Y9.39%
EPS Next 3Y9.94%

DASSAULT SYSTEMES SE

EPA:DSY (4/22/2024, 5:29:56 PM)

38.51

+0.41 (+1.08%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap50.65B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.6%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 32.09
Fwd PE 29.55
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.73
PEG (5Y)2.19
Profitability
Industry RankSector Rank
ROA 10.6%
ROE 19.78%
ROCE
ROIC
ROICexc
ROICexgc
OM 21.56%
PM (TTM) 17.59%
GM 83.57%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.62
Quick Ratio 1.62
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.19%
EPS 3Y16.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.35%
Revenue growth 3Y10.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y