Dassault Systèmes shares: Opportunity or trap at €23.38?
Buy signal | Free publication | 20 Nov 2025
Dassault Systèmes: Comprehensive Overview of the Global Leader in 3D Software 🚀
Hold on tight, because we're talking about a real heavyweight in French tech! Dassault Systèmes is the world leader in the development and marketing of product lifecycle management software. Basically, if you've ever seen an Airbus plane, a Tesla car or even an iPhone, there's a good chance that their design went through Dassault's software.
Their flagship product, the 3DEXPERIENCE platform, is a bit like the Swiss Army knife of modern engineering. With brands such as CATIA (a must for aerospace engineers), SOLIDWORKS (a friend to SMEs), SIMULIA (for simulation without destruction), and MEDIDATA (for clinical trials), Dassault Systèmes is everywhere where serious innovation is happening.
Revenue is divided between software (90.3%) and services (9.7%). Geographically, it is strong in the United States (48.9%), Europe (31.6%), and Asia (18.3%). In short, it is a true multinational company!
Financial Analysis (The Numbers That Speak) 📊
1. Turnover: 3.5/5 ⭐⭐⭐✰✰
Turnover in 2024 reached €6,213.6 million, up 4.4% compared to 2023 (€5,951.4 million). Well, it's not quite the fireworks display we were hoping for. We are a long way from the double-digit growth of the good years.
Let's look at the history:
- 2019: €4,018.2 million
- 2021: €4,860.1 million
- 2023: €5,951.4 million
- 2024: €6,213.6 million
Average growth over 5 years: approximately 9% per year. This is respectable, but it's slowing down significantly. Traditional licence sales are down 13% to €189 million, which is dampening the mood somewhat. But don't worry, we'll come back to this with the cloud transformation!
The verdict: steady growth, but slowing down. Nothing alarming, but nothing to get excited about either.
2. Net result: 4/5 ⭐⭐⭐⭐✰
Net income for 2024 rose to €1,200.2 million, a significant increase of +14% compared to 2023 (€1,050.9 million). We applaud this achievement! Profitability is on track despite the slowdown in turnover.
History of net income:
- 2019: €606.3 million
- 2021: €773.8 million
- 2023: €1,050.9 million
- 2024: €1,200.2 million
The net margin reached nearly 19.3%, which is frankly excellent for software. The operating margin reached 30.1%, up 0.5 points. Dassault clearly knows how to manage its costs like a pro!
The verdict: Very solid. The box is clearly cost-effective and efficient.
3. Debt: 4.5/5 ⭐⭐⭐⭐✰
Net debt for 2024 stands at -€1,459 million (a net credit position!). In other words, Dassault has more cash than debt. With €3,887.9 million in cash and only €3,060.5 million in total debt, the situation is extremely healthy.
Net debt/EBITDA ratio for 2024: approximately -0.67. Negative = excellent. The company could even buy back all its debt tomorrow morning if it wanted to.
The verdict: A rock-solid balance sheet. Zero stress on that front.
4. Return on equity (ROE): 3.5/5 ⭐⭐⭐✰✰
The ROE for 2024 is around 13.3% (calculated on the basis of equity of €9,066.6 million). This is... acceptable. Neither extraordinary nor disastrous. As a reminder, an ROE above 15% is generally considered very good. Dassault is just below that. Historically:
- 2023: 17.9%
- 2024: 13.3%
We can see a decline. This is explained by a faster increase in equity (+15%) than in net income (+14%).
The verdict: Good, but not exceptional. The dilution of capital weighs slightly on the result.
5. Stock market performance: 2.5/5 ⭐⭐✰✰✰
Ouch, that's where it hurts. Dassault Systèmes shares have lost almost half their value since the beginning of 2025. The stock is currently trading at €23.38, down from a high of €41.17 at the beginning of the year. That stings!
The share price is currently at its lowest level since 2021. Investors are punishing the downward revision of growth targets. The group is now aiming for annual growth in total revenue of between 4% and 6%, compared with an initial range of 6% to 8%.
Dividend: €0.26 for a yield of only 1.12%. That's pretty meagre. The verdict: Disappointing performance in 2024-2025. But is this a buying opportunity? Let's take a look!
Overall rating: 3.6/5 ⭐⭐⭐✰✰
General conclusion
Dassault Systèmes remains a very high-quality company with solid fundamentals: strong profitability, impeccable balance sheet, global leadership position. BUT... growth is slowing, the cloud transformation is taking longer than expected, and the market punished it severely in 2024.
Strengths:
- Rock-solid financial balance sheet
- Excellent operating margin (30%)
- Undisputed leader in its market
- Cloud transition underway with +36% on 3DEXPERIENCE Cloud
- Dassault Systèmes wants to establish itself as a major player in AI applied to industry
Weaknesses:
- Sluggish growth (4-6% in 2025)
- Life Sciences segment in decline (-3%)
- Disastrous stock market performance in 2024
- Limited short-term visibility
Forecasts for 2026-2027: The Future Takes Shape 🔮
Oddo BHF forecasts growth of 8% in 2026, then 9% in 2027, boosted by the impact of the cloud transition and AI. One executive stated that AI revenues could reach around £50 to £100 million next year.
Revenue forecasts:
- 2025: ~€6.5 billion (5% growth)
- 2026: ~€7.02 billion (8% growth)
- 2027: ~€7.65 billion (9% growth)
Net income forecasts:
- 2025: ~€1.29 billion
- 2026: ~€1,420 million
- 2027: ~€1,570 million
Share price estimate
The average target price set by analysts is €36.14, with a maximum estimate of €46.00 and a minimum estimate of €24.00. Applying an average P/E ratio of 27-30 (consistent with the software sector):
2026 estimate:
- Estimated EPS: ~€1.08
- Target price: €29-32 (potential +24-37%)
2027 estimate:
- Estimated EPS: ~€1.20
- Target price: €32-36 (potential +37-54%)
This is cautious but realistic. The share is currently undervalued if the company delivers on its promises of a rebound.
Final Thoughts on the Analysis of Dassault Systèmes 🎯
Dassault Systèmes is going through a period of turbulence but remains a technical champion with a promising future. Industrial AI and the cloud are real catalysts for the years to come. Pascal Daloz says that the major developments planned for 2026 and 2027 are just the beginning.
At €23.38, the share price is clearly on sale. Admittedly, investors will need to be patient and accept potential volatility, but for long-term investors, this is a great opportunity to strengthen or enter into a discounted quality stock.
Final rating: 3.6/5 - A solid company at a bargain price. It's worth taking a closer look!
- Signal : Buy
- Budget/Investment : Medium
- Reinforcement required : Yes, if under 20 EUR
- Exposure : Medium
- Horizon : 2 to 3 years
- Potential profitability : +36% to +53%
- Ref. ISIN code : FR0014003TT8