Dassault Systemes SE
🇫🇷 DSY.PA · Paris · FR0014003TT8
Technology
EUR 17.62 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
19.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 17.62 ÷ 0.90 = 19.6
TTM period through: 2025-12-31
Forward P/E (estimated): 13.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 19.6
Yield (Fwd)
1.53%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.54%
Net Debt/EBITDA (TTM)
-0.8x
Latest quarter: -2.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): -2.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
30.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 28.6%
Cash Flow Payout (TTM): 21.0%
FCF Coverage (TTM): 4.29x
ROE
13.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Dassault Systèmes is a high-quality technology leader with a dominant position in industrial software and a fortress balance sheet. However, its classification in the technology sector, a history of inconsistent dividends, and a low yield of 1.54% represent a fundamental strategy mismatch for our conservative approach. Not recommended for new positions, as the risks outweigh the potential returns for an income-focused strategy.
Sector Context
Dassault Systemes is a global leader in 3D design software, 3D digital mock-ups, and product lifecycle management (PLM) solutions. While the company enjoys monopoly-like characteristics and high switching costs in its niches, the Technology sector falls completely outside our dividend strategy mandate due to the inherent risks of rapid technological obsolescence and the lack of essential, tangible assets.
Temporary Opportunity Identified
The stock has experienced a significant 53% share price decline over the past year, reaching 52-week lows amid market pressures and a recent leadership transition.
📊 Strategy Analysis
- • Possesses a strong competitive moat as a global leader in 3D design and product lifecycle management software, benefiting from high switching costs.
- • Maintains a fortress balance sheet with negative net debt to EBITDA (-0.81x) and excellent free cash flow generation.
- • Demonstrates healthy profitability metrics with an EBITDA margin of 30.4% and an easily sustainable payout ratio of 29%.
⚠ What to Watch
- • Operates in the Technology sector, which represents a fundamental strategy mismatch for our conservative dividend approach focused on essential services.
- • Exhibits an inconsistent dividend history with three cuts in the past decade (2017, 2018, 2021) and a current yield of 1.54%, falling well below the strict >3% minimum.
- • Despite recent steep price declines, the valuation remains elevated at a P/E of 19.57, which sits above our target 8-15x range and the €16.21 monopoly fair value bound.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.