Stock Analysis & Valuation Delta Plus Group (ALDLT.PA)

• Previous Close: €50.60
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	128.90	155
Intrinsic value (DCF)	19.50	-61
Graham-Dodd Method	9.80	-81
Graham Formula	14.96	-70

Strategic Investment Analysis

Company Overview

Delta Plus Group (ALDLT.PA) is a leading global manufacturer and distributor of personal protective equipment (PPE), headquartered in Apt, France. Founded in 1977, the company specializes in head, hand, body, foot, and fall protection products, catering to industries such as construction, manufacturing, and DIY. Delta Plus serves a diverse clientele with high-quality safety gear, including eyewear, gloves, workwear, and fall arrest systems. Operating in a highly regulated industry, the company benefits from stringent workplace safety standards worldwide. With a market cap of approximately €374 million, Delta Plus is a key player in the consumer cyclical sector, particularly in the PPE segment. Its broad product portfolio and global distribution network position it well in the growing safety equipment market, driven by increasing occupational safety regulations and corporate responsibility initiatives.

Investment Summary

Delta Plus Group presents a stable investment opportunity in the essential PPE market, supported by consistent demand for workplace safety products. The company's diversified product range and global presence mitigate sector-specific risks, while its €400 million revenue and €31.1 million net income in the latest fiscal year reflect solid profitability. However, investors should note the company's moderate debt levels (€194.8 million) and limited operating cash flow data. The beta of 0.964 suggests lower volatility compared to the broader market, making it a defensive play in the consumer cyclical sector. The dividend yield, with a payout of €1.25 per share, adds income appeal. Risks include exposure to raw material price fluctuations and potential regulatory changes in safety standards.

Competitive Analysis

Delta Plus Group competes in the fragmented global PPE market, where it differentiates through a comprehensive product portfolio and strong European distribution network. The company's competitive advantage lies in its vertically integrated operations, combining in-house design and manufacturing with direct distribution capabilities. This allows for quality control and faster response to regional safety standard changes. Delta Plus has built brand recognition in industrial safety equipment, particularly in France and neighboring markets, but faces challenges in scaling against larger multinational competitors. Its mid-market positioning balances quality and affordability, appealing to both professional and DIY segments. The company's R&D focus on ergonomic and high-performance PPE helps maintain margins, though it lacks the scale of top-tier players in procurement and global logistics. With workplace safety regulations tightening globally, Delta Plus is well-positioned to capitalize on growing PPE demand, but must continue investing in product innovation and emerging market expansion to maintain its competitive edge.

Major Competitors

• Honeywell International Inc. (HOLN.SW): Honeywell is a diversified multinational with a strong PPE division, competing directly with Delta Plus in high-end safety equipment. Its advantages include global scale, technological innovation (e.g., connected safety devices), and cross-selling opportunities across industrial clients. However, as a conglomerate, PPE is not its sole focus, potentially limiting segment-specific R&D compared to Delta Plus.
• 3M Company (3M): 3M dominates the PPE market with iconic brands like Scotchgard and Thinsulate. Its strengths include unparalleled R&D resources and global distribution, but recent legal liabilities (e.g., earplug lawsuits) have diverted management attention. 3M's premium pricing creates space for Delta Plus in cost-sensitive segments.
• MSA Safety Incorporated (MSA): MSA specializes in high-performance safety equipment, particularly for fire services and oil/gas industries. While technologically advanced, its narrow industrial focus contrasts with Delta Plus's broader PPE range. MSA's strong North American presence complements Delta Plus's European base, making them regional rivals.
• Uvex Group (UVV): This German family-owned business is a key European competitor with similar product lines. Uvex excels in sports and occupational eyewear, where it outpaces Delta Plus, but has less comprehensive fall protection offerings. Its private status allows long-term planning but limits acquisition currency compared to public Delta Plus.
• Ansell Limited (ANSS): Ansell leads in medical and industrial gloves, directly competing with Delta Plus's hand protection segment. Its Asia-Pacific manufacturing base provides cost advantages, but Delta Plus maintains stronger European distribution networks. Ansell's focus on single-use gloves creates differentiation from Delta Plus's reusable safety gear.