Stock Analysis & Valuation Piscines Desjoyaux S.A. (ALPDX.PA)

• Previous Close: €13.45
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	55.52	313
Intrinsic value (DCF)	8.67	-36
Graham-Dodd Method	4.32	-68
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Piscines Desjoyaux SA (ALPDX.PA) is a leading French company specializing in the design, manufacturing, and marketing of swimming pools and related products. Founded in 1966 and headquartered in La Fouillouse, France, the company offers a comprehensive range of pool solutions, including public pools, paving, pool edges, and essential equipment like solar covers, showers, and safety barriers. As a subsidiary of Desjoyaux Finance SAS, Piscines Desjoyaux operates in the consumer cyclical sector, catering to both residential and commercial markets. The company’s vertically integrated business model allows it to control quality and efficiency from production to installation, reinforcing its strong position in the European leisure industry. With a market capitalization of approximately €118 million, Piscines Desjoyaux continues to innovate in sustainable pool technologies, enhancing its appeal in an increasingly eco-conscious market.

Investment Summary

Piscines Desjoyaux presents a niche investment opportunity in the leisure sector, supported by its established brand and vertically integrated operations. The company’s solid financials, including €115.65 million in revenue and €11 million in net income for the latest fiscal period, reflect stable profitability. However, its beta of 1.283 indicates higher volatility compared to the broader market, which may deter risk-averse investors. The company maintains a healthy cash position (€63.5 million) but carries moderate debt (€35.9 million). A dividend yield of €1 per share adds income appeal, though growth prospects may be limited by regional market saturation. Investors should weigh its strong domestic presence against potential challenges in international expansion and cyclical demand risks.

Competitive Analysis

Piscines Desjoyaux’s competitive advantage lies in its vertically integrated model, which ensures cost efficiency and quality control across its product lifecycle. The company’s focus on innovation, particularly in modular and eco-friendly pool systems, differentiates it from competitors. However, its market is highly fragmented, with regional players dominating localized demand. While Desjoyaux benefits from brand loyalty in France, it faces stiff competition from larger multinationals with broader distribution networks and economies of scale. The company’s niche positioning in high-end residential and public pools provides pricing power but limits mass-market penetration. Its reliance on the European market (particularly France) exposes it to regional economic fluctuations, whereas competitors with global operations enjoy diversified revenue streams. Capital expenditures (€-15.6 million) suggest ongoing investments in capacity, but scalability remains a challenge compared to industry leaders.

Major Competitors

• Fluidra SA (FLUID.PA): Fluidra is a global leader in pool equipment and connected solutions, with a strong presence in North America and Europe. Its scale and technological edge in smart pool systems outpace Desjoyaux’s offerings. However, Fluidra’s lack of vertical integration in pool construction limits its control over end-to-end customer experience compared to Desjoyaux.
• Pool Corporation (POOL): Pool Corp dominates the U.S. market as the largest wholesale distributor of pool supplies. Its vast distribution network and supplier relationships give it unparalleled reach, but it does not manufacture pools, ceding the construction segment to integrated players like Desjoyaux. Its geographic focus on the U.S. limits direct competition in Europe.
• Zodiac Energy Limited (ZODIAC.NS): Zodiac Energy specializes in solar-powered pool solutions, aligning with sustainability trends. Its cost-competitive manufacturing in India poses a threat to Desjoyaux in price-sensitive markets. However, Zodiac lacks Desjoyaux’s expertise in high-end modular pool systems and has minimal brand recognition in Europe.
• Huazhu Group Limited (HTHT): Huazhu operates in the hospitality sector, including pool-equipped hotels, but does not compete directly in pool manufacturing. Its strength in Asia’s booming tourism industry highlights a divergent market focus compared to Desjoyaux’s residential and public pool niche.