Amcon Distributing Company (DIT) AI Stock Analysis

• Market Cap: $74.55M
• Dividend Yield: 0.62%
• Average Volume (3M): 368.00
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.16
• Revenue Growth: 6.03%
• EPS Growth: -83.00%
• Country: US
• Employees: 1,362
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Food Distribution
• EPS (TTM): -2.58
• Shares Outstanding: 645,462
• 10 Day Avg. Volume: 624
• 30 Day Avg. Volume: 368
• PEG Ratio: 0.22
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.54
• Enterprise Value/Market Cap: 3.21
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: 2.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $120.00 ▲(3.90%Upside)

The overall stock score for Amcon Distributing Company is driven by solid revenue growth and operational efficiency, moderated by concerns over declining net profitability and cash flow challenges. Technical indicators suggest a bearish outlook, compounded by a high P/E ratio indicating potential overvaluation. The dividend yield is modest, offering limited income for investors.

Amcon Distributing Company Business Overview & Revenue Model

Company Description

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 through Wholesale Distribution and Retail Health Food segments. 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. In addition, 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. Further, the company operates twenty retail health food stores under the Chamberlin's Natural Foods, Akin's Natural Foods, and Earth Origins Market brands. AMCON Distributing Company was incorporated in 1986 and is based in Omaha, Nebraska.

How the Company Makes Money

AMCON Distributing Company makes money primarily through the wholesale distribution of consumer products to retailers such as convenience stores and small grocery chains. Its key revenue streams include the sale of tobacco products, which form a significant portion of its business, followed by candy, beverages, groceries, and other convenience store products. The company also generates revenue through its retail health food segment, which involves the operation of health food retail stores offering natural and organic products. Strategic partnerships with manufacturers and suppliers, as well as the company's expansive distribution network, contribute significantly to its earnings by enabling efficient product distribution and competitive pricing.

Amcon Distributing Company Financial Statement Overview

Summary

Amcon Distributing Company demonstrates solid revenue growth and operational efficiency, but faces challenges with declining net profitability and free cash flow generation in the TTM period. The company maintains a stable balance sheet with manageable leverage, although rising debt levels could pose future risks. Overall, the financial statements indicate a need for strategic management of cash flows and profitability to sustain growth.

Income Statement

Amcon Distributing Company shows strong revenue growth with a 10.4% increase from 2023 to TTM, and a solid gross profit margin of 6.6% for TTM. However, net profit margin declined to 0.05% due to lower net income. The EBIT and EBITDA margins are relatively stable, indicating efficient operational performance despite recent profit challenges.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.31, suggesting manageable leverage. Equity ratio is also favorable at 28.4%, indicating a strong asset base. However, recent increases in total debt warrant monitoring for potential future risks.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow, impacted by increased capital expenditures, resulting in negative free cash flow for TTM. Operating cash flow to net income ratio is strong at 5.84, signaling good cash generation relative to net income. The free cash flow to net income ratio is negative due to the drop in free cash flow.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.79B	2.71B	2.54B	2.01B	1.67B	1.52B
Gross Profit	184.25M	182.35M	170.84M	127.72M	100.55M	87.73M
EBITDA	24.20M	27.37M	33.43M	26.25M	20.92M	12.68M
Net Income	1.48M	4.34M	11.60M	16.67M	12.19M	5.54M
Balance Sheet
Total Assets	392.00M	374.11M	363.43M	289.12M	188.41M	188.00M
Cash, Cash Equivalents and Short-Term Investments	685.85K	672.79K	790.93K	431.58K	519.59K	661.20K
Total Debt	190.17M	168.84M	177.54M	120.48M	67.45M	84.73M
Total Liabilities	280.65M	262.38M	259.26M	196.30M	110.80M	123.21M
Stockholders Equity	111.35M	111.73M	104.17M	92.83M	77.61M	64.79M
Cash Flow
Free Cash Flow	-7.13M	47.44M	8.16M	8.20M	19.41M	11.85M
Operating Cash Flow	8.67M	67.87M	19.72M	22.89M	20.94M	15.20M
Investing Cash Flow	-43.77M	-42.11M	-66.27M	-14.36M	-1.47M	-13.31M
Financing Cash Flow	34.84M	-25.88M	46.91M	-8.62M	-19.61M	-1.57M

Amcon Distributing Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 115.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIT, the sentiment is Neutral. The current price of 115.5 is above the 20-day moving average (MA) of 106.28, above the 50-day MA of 110.73, and below the 200-day MA of 125.55, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 88.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DIT.

Amcon Distributing Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYY	78 Outperform	$37.41B	19.96	94.91%	2.78%	3.55%	-5.79%
USFD	77 Outperform	$18.14B	36.03	11.16%	―	6.32%	5.69%
PFGC	76 Outperform	$13.87B	36.99	9.05%	―	6.20%	-10.58%
SPTN	71 Outperform	$900.39M	2,245.98	-1.38%	3.31%	0.26%	-119.66%
Sector *	66 Neutral	£10.46B	6.17	4.94%	3.10%	-0.88%	2.57%
DIT	64 Neutral	$74.55M	48.08	1.35%	0.62%	6.03%	-83.00%
UNFI	58 Neutral	$1.41B	―	-4.11%	―	6.62%	53.12%