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 Analysis

Second-rate dividend payer with mediocre balance sheet.


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

-0.4%

DIT

-6.1%

US Retail Distributors

-7.4%

US Market


1 Year Return

-18.9%

DIT

0.4%

US Retail Distributors

10.5%

US Market

Return vs Industry: DIT underperformed the US Retail Distributors industry which returned 0.4% over the past year.

Return vs Market: DIT underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

DITIndustryMarket
7 Day-0.4%-6.1%-7.4%
30 Day-3.9%-7.3%-3.6%
90 Day6.3%-9.4%-0.6%
1 Year-17.9%-18.9%2.1%0.4%12.8%10.5%
3 Year-22.8%-25.5%12.7%7.4%37.4%28.6%
5 Year-5.1%-10.4%37.6%26.3%61.3%43.6%

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?

18.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIT ($74.97) is trading above our estimate of fair value ($17.9)

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 (18.2x) compared to the Retail Distributors industry average (18.2x).

PE vs Market: DIT is poor value based on its PE Ratio (18.2x) compared to the US market (17.2x).


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 (0.7x) compared to the US Retail Distributors industry average (2.8x).


Next Steps

Future Growth

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

13.2%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AMCON Distributing has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AMCON Distributing performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIT has a large one-off loss of $2.9M impacting its December 31 2019 financial results.

Growing Profit Margin: DIT's current net profit margins (0.2%) are lower than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: DIT's earnings have declined by -13.9% 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 (-28.7%) over the past year, making it difficult to compare to the Retail Distributors industry average (-18.5%).


Return on Equity

High ROE: DIT's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is AMCON Distributing's financial position?


Financial Position Analysis

Short Term Liabilities: DIT's short term assets ($103.6M) exceed its short term liabilities ($31.8M).

Long Term Liabilities: DIT's short term assets ($103.6M) exceed its long term liabilities ($53.9M).


Debt to Equity History and Analysis

Debt Level: DIT's debt to equity ratio (59.8%) is considered high.

Reducing Debt: DIT's debt to equity ratio has increased from 40.9% to 59.8% over the past 5 years.

Debt Coverage: DIT's debt is not well covered by operating cash flow (6.3%).

Interest Coverage: DIT's interest payments on its debt are well covered by EBIT (4.8x 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 2.8x debt).


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIT's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: DIT's dividend (1.33%) is low compared to the top 25% of dividend payers in the US market (3.9%).


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 (17.5%), 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

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Chris Atayan (59yo)

13.3yrs

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 ($USD2.02M) is above average for companies of similar size in the US market ($USD524.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Atayan
Chairman & CEO13.3yrsUS$2.02m60.78% $25.8m
Andrew Plummer
President1.3yrsUS$678.06k3.69% $1.6m
Charles Schmaderer
VP, Corporate Controller & Secretary1.3yrsUS$272.89k0.0088% $3.8k
Philip Campbell
Senior Vice President of Planning & Compliance13.1yrsUS$406.17kno data
Kathleen Evans
Consultant1.3yrsUS$609.34kno data

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: DIT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Atayan
Chairman & CEO13.3yrsUS$2.02m60.78% $25.8m
Andrew Plummer
President1.3yrsUS$678.06k3.69% $1.6m
Raymond Bentele
Independent Director17.8yrsUS$50.00k0.39% $167.1k
Timothy Pestotnik
Lead Director12.1yrsUS$100.00k0.21% $88.6k
Stanley Mayer
Independent Director17.9yrsUS$50.00k0.46% $194.8k
John Loyack
Independent Director16.4yrsUS$60.00k0.54% $228.6k
Jeremy Hobbs
Independent Director13.9yrsUS$45.00k0.31% $132.4k

13.9yrs

Average Tenure

59yo

Average Age

Experienced Board: DIT's board of directors are seasoned and experienced ( 13.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$42.421m
  • Shares outstanding: 565.83k
  • 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 operates in two segments, Wholesale Distribution and Retail Health Food. The Wholesale Distribution segment distributes consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products, and institutional foodservice products. It serves retailers, such as convenience stores, discount and general merchandise stores, grocery stores, drug stores, liquor stores, tobacco shops, and gas stations; and institutional customers, including restaurants and bars, schools, and sports complexes, as well as other wholesalers. This segment also markets private label lines of water, candy products, batteries, and other products. The Retail Health Food segment is involved in the retail of natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise. As of November 8, 2019, it operated 22 retail health food stores under the Chamberlin’s Natural Foods, Akin’s Natural Foods, and Earth Origins Market brands. AMCON Distributing Company was founded in 1981 and is based in Omaha, Nebraska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:53
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.