AMEX:DIT

Stock Analysis Report

Executive Summary

AMCON Distributing Company, together with its subsidiaries, engages in the wholesale distribution of consumer products in the Central, Rocky Mountain, and Mid-South regions of the United States.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has AMCON Distributing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DIT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

DIT

0.007%

US Retail Distributors

0.7%

US Market


1 Year Return

-17.6%

DIT

14.8%

US Retail Distributors

12.9%

US Market

Return vs Industry: DIT underperformed the US Retail Distributors industry which returned 14.8% over the past year.

Return vs Market: DIT underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

DITIndustryMarket
7 Day-4.1%0.007%0.7%
30 Day1.2%1.6%4.4%
90 Day-17.0%11.2%7.0%
1 Year-16.7%-17.6%16.7%14.8%15.4%12.9%
3 Year-21.4%-23.9%26.1%20.2%49.1%39.5%
5 Year-12.3%-16.9%39.5%28.6%62.7%44.7%

Price Volatility Vs. Market

How volatile is AMCON Distributing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AMCON Distributing undervalued compared to its fair value and its price relative to the market?

13.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIT ($70) is trading above our estimate of fair value ($15.9)

Significantly Below Fair Value: DIT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DIT is good value based on its PE Ratio (13.1x) compared to the Retail Distributors industry average (17.6x).

PE vs Market: DIT is good value based on its PE Ratio (13.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DIT is good value based on its PB Ratio (0.6x) compared to the US Retail Distributors industry average (2.2x).


Next Steps

Future Growth

How is AMCON Distributing forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIT's forecast earnings growth (31.9% per year) is above the savings rate (2.7%).

Earnings vs Market: DIT's earnings (31.9% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if DIT's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if DIT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DIT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AMCON Distributing performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIT has large one-off items impacting its financial results.

Growing Profit Margin: DIT's current net profit margins (0.2%) are lower than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: DIT's earnings have declined by -11.2% per year over the past 5 years.

Accelerating Growth: DIT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DIT had negative earnings growth (-11.4%) over the past year, making it difficult to compare to the Retail Distributors industry average (-7.7%).


Return on Equity

High ROE: DIT's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AMCON Distributing's financial position?


Financial Position Analysis

Short Term Liabilities: DIT's short term assets ($134.8M) exceeds its short term liabilities ($31.6M)

Long Term Liabilities: DIT's short term assets (134.8M) exceeds its long term liabilities (65.4M)


Debt to Equity History and Analysis

Debt Level: DIT's debt to equity ratio (105.4%) is considered high

Reducing Debt: DIT's debt to equity ratio has increased from 32.9% to 105.4% over the past 5 years.

Debt Coverage: DIT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DIT's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

Inventory Level: DIT has a high level of physical assets or inventory.

Debt Coverage by Assets: DIT's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is AMCON Distributing's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DIT's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: DIT's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: DIT's dividends per share have been stable in the past 10 years.

Growing Dividend: DIT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), DIT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of AMCON Distributing's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Chris Atayan (59yo)

13.1yrs

Tenure

US$2,017,343

Compensation

Mr. Christopher H. Atayan, also known as Chris, has been the Chief Executive Officer of AMCON Distributing Co. since October 2006. Mr. Atayan serves as a Consultant of Draupnir, LLC. He served as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.02M) is above average for companies of similar size in the US market ($USD508.62K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.1yrs

Average Tenure

57yo

Average Age

Experienced Management: DIT's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

13.7yrs

Average Tenure

59yo

Average Age

Experienced Board: DIT's board of directors are seasoned and experienced ( 13.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,262,27313 Mar 19
Kathleen Evans
EntityIndividual
Role
Consultant
Consultant
Shares24,457
Max PriceUS$92.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kathleen Evans (72yo)

    Consultant

    • Tenure: 1.1yrs
    • Compensation: US$609.34k
  • Philip Campbell (57yo)

    Senior Vice President of Planning & Compliance

    • Tenure: 12.8yrs
    • Compensation: US$406.17k
  • Chris Atayan (59yo)

    Chairman & CEO

    • Tenure: 13.1yrs
    • Compensation: US$2.02m
  • Andy Plummer (45yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$678.06k
  • Chuck Schmaderer (50yo)

    VP, Corporate Controller & Secretary

    • Tenure: 1.1yrs
    • Compensation: US$272.89k

Board Members

  • Raymond Bentele (82yo)

    Director

    • Tenure: 17.5yrs
    • Compensation: US$50.00k
  • Tim Pestotnik (59yo)

    Lead Director

    • Tenure: 11.8yrs
    • Compensation: US$100.00k
  • Stanley Mayer (74yo)

    Director

    • Tenure: 17.7yrs
    • Compensation: US$50.00k
  • John Loyack (56yo)

    Director

    • Tenure: 16.2yrs
    • Compensation: US$60.00k
  • Jeremy Hobbs (58yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$45.00k
  • Chris Atayan (59yo)

    Chairman & CEO

    • Tenure: 13.1yrs
    • Compensation: US$2.02m
  • Andy Plummer (45yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$678.06k

Company Information

AMCON Distributing Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AMCON Distributing Company
  • Ticker: DIT
  • Exchange: AMEX
  • Founded: 1981
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: US$39.616m
  • Shares outstanding: 565.94k
  • Website: https://www.amcon.com

Number of Employees


Location

  • AMCON Distributing Company
  • 7405 Irvington Road
  • Omaha
  • Nebraska
  • 68122
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DITAMEX (NYSE MKT LLC)YesCommon StockUSUSDAug 1995

Biography

AMCON Distributing Company, together with its subsidiaries, engages in the wholesale distribution of consumer products in the Central, Rocky Mountain, and Mid-South regions of the United States. It operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:31
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.