Stock Analysis & Valuation Delticom AG (DEX.DE)

• Previous Close: €2.33
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	73.18	3041
Intrinsic value (DCF)	0.88	-62
Graham-Dodd Method	2.47	6
Graham Formula	3.90	67

Strategic Investment Analysis

Company Overview

Delticom AG is a leading European online retailer specializing in tires and wheels, serving both retail and commercial customers across 75 countries. Founded in 1999 and headquartered in Hanover, Germany, the company operates 410 online shops and distribution platforms, offering a wide range of products for passenger cars, motorbikes, trucks, utility vehicles, and buses. As a pioneer in the digital tire market, Delticom leverages its extensive logistics network and e-commerce expertise to provide competitive pricing and convenience. The company operates in the Auto - Parts sector, a segment of the Consumer Cyclical industry, benefiting from steady demand for replacement tires. Delticom’s strong online presence and pan-European reach position it as a key player in the evolving digital automotive aftermarket.

Investment Summary

Delticom AG presents a niche investment opportunity in the European online tire market, with a market capitalization of €34.7 million. The company reported €507 million in revenue and €4 million in net income for the latest fiscal year, with diluted EPS of €0.27. While its beta of 0.776 suggests lower volatility compared to the broader market, Delticom faces risks from intense competition, supply chain disruptions, and fluctuating raw material costs. The absence of dividends may deter income-focused investors, but its strong operating cash flow (€4.86 million) and manageable debt (€79.17 million) provide financial stability. Investors should weigh its e-commerce growth potential against sector-specific challenges.

Competitive Analysis

Delticom AG’s competitive advantage lies in its first-mover status in the online tire retail space and its extensive pan-European distribution network. The company’s digital-first approach allows it to offer competitive pricing and a broad product selection, appealing to cost-conscious consumers. However, Delticom faces stiff competition from both traditional brick-and-mortar tire retailers expanding online and pure-play e-commerce rivals. Its ability to maintain margins is challenged by price transparency in the online market and logistical complexities in tire distribution. While Delticom’s multi-country presence provides diversification, it also exposes the company to regulatory and operational risks across different markets. The company’s focus on tires and wheels—rather than a broader automotive parts assortment—could limit cross-selling opportunities but reinforces its specialization in a high-demand segment.

Major Competitors

• Puma SE (PUM.DE): Puma SE is a global sportswear manufacturer, not a direct competitor in the tire market. This appears to be an incorrect match—no direct competitor data is available.
• Nokian Tyres plc (TYRES.HE): Nokian Tyres is a leading tire manufacturer with a strong presence in Nordic markets. Unlike Delticom, Nokian focuses on tire production rather than distribution, giving it control over product quality and branding. However, Nokian lacks Delticom’s extensive e-commerce infrastructure for direct-to-consumer sales.
• Michelin (ML.PA): Michelin is a global tire manufacturing giant with a diversified product portfolio. While Michelin has a strong brand and proprietary technology, its direct online sales channels are less developed than Delticom’s. Michelin’s scale allows for R&D investments, but it faces challenges in matching Delticom’s agility in e-commerce.
• Continental AG (CON.DE): Continental AG is a major automotive parts supplier with a strong tire division. While Continental benefits from vertical integration and OEM relationships, its online retail presence is less pronounced than Delticom’s. Continental’s focus on premium tires contrasts with Delticom’s broader price-range offerings.