AMEX:DIT

Stock Analysis Report

NOT FOR DISTRIBUTION
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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

Fair value 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.4%

DIT

4.3%

US Retail Distributors

2.5%

US Market


1 Year Return

-23.2%

DIT

11.1%

US Retail Distributors

16.3%

US Market

Return vs Industry: DIT underperformed the US Retail Distributors industry which returned 11.8% over the past year.

Return vs Market: DIT underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

DITIndustryMarket
7 Day5.4%4.3%2.5%
30 Day24.8%14.6%5.6%
90 Day3.7%26.4%16.4%
1 Year-22.2%-23.2%13.0%11.1%18.8%16.3%
3 Year-19.3%-22.2%39.7%33.4%45.1%35.7%
5 Year-9.9%-15.0%36.3%27.0%75.8%56.8%

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?

16.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIT ($72.4) is trading above our estimate of fair value ($14.73)

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 (16.4x) compared to the US Retail Distributors industry average (22.8x).

PE vs Market: DIT is good value based on its PE Ratio (16.4x) compared to the US market (18.8x).


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 (1.9x).


Next Steps

Future Growth

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

22.9%

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?

-19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIT has a large one-off loss of $2.9M impacting its June 30 2020 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 19% 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 (-43.6%) over the past year, making it difficult to compare to the Retail Distributors industry average (-19.4%).


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 ($123.5M) exceed its short term liabilities ($37.3M).

Long Term Liabilities: DIT's short term assets ($123.5M) exceed its long term liabilities ($75.7M).


Debt to Equity History and Analysis

Debt Level: DIT's debt to equity ratio (93.2%) is considered high.

Reducing Debt: DIT's debt to equity ratio has increased from 28.8% to 93.2% 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 (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIT's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: DIT's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (4.45%).


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 (16.3%), 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?

2.3yrs

Average management tenure


CEO

Chris Atayan (60 yo)

13.83yrs

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 ($USD2.02M) is above average for companies of similar size in the US market ($USD598.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Atayan
Chairman & CEO13.83yrsUS$2.02m60.88%
$ 24.9m
Andrew Plummer
President1.83yrsUS$678.06k3.69%
$ 1.5m
Charles Schmaderer
VP, Corporate Controller & Secretary2.33yrsUS$272.89k0.097%
$ 39.8k
Philip Campbell
Senior Vice President of Planning & Compliance13.58yrsUS$406.17kno data
Kathleen Evans
Consultant1.83yrsUS$609.34kno data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: DIT's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Atayan
Chairman & CEO13.83yrsUS$2.02m60.88%
$ 24.9m
Andrew Plummer
President1.83yrsUS$678.06k3.69%
$ 1.5m
Raymond Bentele
Independent Director18.25yrsUS$50.00k0.39%
$ 161.4k
Timothy Pestotnik
Independent Lead Director12.58yrsUS$100.00k0.21%
$ 85.6k
Stanley Mayer
Independent Director18.42yrsUS$50.00k0.46%
$ 188.2k
John Loyack
Independent Director16.92yrsUS$60.00k0.54%
$ 220.7k
Jeremy Hobbs
Independent Director14.42yrsUS$45.00k0.31%
$ 127.9k

14.4yrs

Average Tenure

60yo

Average Age

Experienced Board: DIT's board of directors are seasoned and experienced ( 14.4 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.


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$40.897m
  • Shares outstanding: 564.88k
  • 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 Analysis2020/08/07 23:38
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.