Dassault Systèmes stock remains a safe bet on the stock market. To find out more, read our guide for detailed information about the company.
Dassault Systèmes is a well-known leading company in its field, and remains a popular stock market investment. However, health and economic crises are a threat to many sectors and this market leader is not immune. Find out more about Dassault Systèmes and its stock market value in this article.
Dassault Systèmes is a software company and the world leader in the development and marketing of product lifecycle management software, or PLM. The company owns several brands and products, namely : 3DEXPERIENCE, CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3DVIA, BIOVIA, NETVIBES, 3DEXCITE, Centric PLM, and MEDIDATA.
The company's activities are therefore highly diversified. They can be categorized in two parts: computer-aided design and manufacturing, and project management systems.
The company operates in several fields, including high technology, engineering and construction, transportation and mobility, life science, energy, aerospace and defense, industrial equipment and consumer goods.
Dassault Systèmes is a subsidiary of the Marcel Dassault Industrial Group. The company was founded in 1981 to meet the needs of aircraft design. Later, the company's activity was extended to other industrial sectors.
The shareholders of Dassault Systèmes are as follows:
To remain ahead of the curve, Dassault Systèmes develops and manufactures its products in partnership with a multitude of companies and start-ups around the world. Some of these strategic partners include AB OVO, Accenture, Acer, AKKA Technologies, Altran, Aurionpro, Bisonaire, Brinure SAS and CGI Group.
Dassault Systèmes has several major competitors, as it operates in several fields. Its direct competitors include the American Autodesk, and the two other French leaders in software design, Criteo and Ubisoft.
Other companies that develop software substantially similar to that of Dassault Systèmes are also worth mentioning. These include Microsoft, Cisco, Adobe, IBM, Symantec, SAP, SAS, EMC, Google, HP, SalesForce, CA Technologies and Siemens.
Dassault Systèmes reported revenue of 4,452 Billion Euros in 2020, compared to 4,018 Billion in 2019 and 3,477 Billion in 2018. Revenue is therefore constantly growing. Dassault Systèmes was able to achieve a net income of 485,500 Million Euros in 2020.
Revenues by product and service family can be broken down as follows:
The geographical breakdown of Dassault Systèmes' revenues is as follows: 41.6% in Europe, 32.3% in the Americas and the remaining 26.1% in Asia.
Dassault Systèmes is part of the French stock market index CAC40. It is listed on Euronext Paris in compartment A, in the IT services sector. Dassault Systèmes shares are eligible for the PEA and SRD. The market capitalization of the company is more than 49,191 million Euros. The number of shares available is 264,254,319.
Dassault Systèmes benefited from the global health context. Indeed, the majority of Covid-19 trials used the company's Rave EDC solution.
Dassault Systèmes has put in place several development programs that will run until 2023 and aim to strengthen several businesses and brands, such as 3DExperience. Realistic growth strategies provide a good outlook for 2021. The group is making major investments to strengthen its position as an international leader.
The company's financial situation is healthy and solid. The upward trend of the turnover, over a few years, is reassuring for investors.
The diversification of business areas is a strong point for Dassault Systèmes stock, as this policy allows the company to fragment operational risks. In addition, the company can count on the support of several partners in the design and development of innovative products and services. The budgets allocated to research and development allow it to offer more innovative products in various sectors. In addition, the geographical distribution of the company's sales provides balance.
It is important to follow the Asian economic environment, which is rather volatile.
Changes in the value of the euro against other currencies, mainly American and Asian, may also influence Dassault Systèmes' results.
With the economic and health crisis, there are several business sectors in which Dassault Systèmes is experiencing a slowdown, which may affect overall profitability. For example, the risk of order contraction is high in the IT sector.
