The AMCON Distributing (NYSEMKT:DIT) Share Price Is Up 35% And Shareholders Are Holding On

The AMCON Distributing Company (NYSEMKT:DIT) share price has had a bad week, falling 15%. But that doesn't change the fact that the returns over the last year have been pleasing. Looking at the full year, the company has easily bested an index fund by gaining 35%.

Check out our latest analysis for AMCON Distributing

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year AMCON Distributing grew its earnings per share (EPS) by 85%. It's fair to say that the share price gain of 35% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about AMCON Distributing as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 10.28.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into AMCON Distributing's key metrics by checking this interactive graph of AMCON Distributing's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for AMCON Distributing the TSR over the last year was 43%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that AMCON Distributing shareholders have received a total shareholder return of 43% over the last year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 8%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for AMCON Distributing (of which 1 shouldn't be ignored!) you should know about.

But note: AMCON Distributing may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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