Narrow-Moat Ansell in Good Health but Overvalued

Ansell is focused almost entirely on protective gloves in industrial and healthcare settings. Each of the markets is quite fragmented and Ansell’s market position differs by vertical, but the company is estimated to be in the top two players with approximately 10% market share in industrial, and in the top three players with approximately 9% market share in healthcare. Competitors differ between the two segments but are either divisions of large global players or regional companies. Key industrial competitors are Honeywell, Globus, a private U.K. company, and ATG Gloves in the U.S. In the healthcare segment Halyard Health (spun out of Kimberly Clark in 2014) and Cardinal Health are major players.