Amcon Distributing Company (DIT) AI Stock Analysis

• Market Cap: $74.87M
• Dividend Yield: 0.87%
• Average Volume (3M): 419.00
• Price to Earnings (P/E): 55.8
• Beta (1Y): 0.20
• Revenue Growth: 6.00%
• EPS Growth: -79.17%
• Country: US
• Employees: 1,362
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 2.13
• Shares Outstanding: 645,462
• 10 Day Avg. Volume: 519
• 30 Day Avg. Volume: 419
• PEG Ratio: -0.32
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 1.83
• Enterprise Value/Market Cap: 3.57
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 11.38
• 1Y Price Target: $124.00
• Price Target Upside: 7.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $124.00 ▲(7.83% Upside)

The overall stock score of 64 reflects strong financial performance, particularly in cash flow generation and revenue growth, which are offset by challenges in profitability and a high P/E ratio suggesting overvaluation. Technical indicators show mixed signals with short-term bullish momentum but potential overbought conditions.

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 generates revenue primarily through wholesale distribution by selling products to convenience stores and retailers at a markup. The company's revenue model is based on bulk purchasing, which allows it to negotiate favorable terms with manufacturers and suppliers. Key revenue streams include the sales of snacks, beverages, and tobacco products, along with general merchandise. Additionally, Amcon benefits from strategic partnerships with leading brands, ensuring a steady supply of in-demand products. The company's retail segment also contributes to its earnings, allowing it to capture direct sales from end consumers. Overall, Amcon's diverse product offerings and established relationships within the industry are significant factors that enhance its profitability.

Amcon Distributing Company Financial Statement Overview

Summary

Amcon Distributing Company shows solid revenue growth and strong cash flow generation, which are positive indicators for its financial health. However, the declining net profit margin and return on equity highlight challenges in profitability. The improved debt-to-equity ratio and stable equity ratio are reassuring for long-term stability.

Income Statement

The company demonstrated strong revenue growth with a 3.9% increase in TTM compared to the previous year and consistent gross profit margins. However, the net profit margin has decreased significantly to 0.05% in TTM, indicating challenges in controlling expenses. EBITDA margin remains healthy at 0.83%, suggesting good operational efficiency despite declining EBIT margins.

Balance Sheet

The debt-to-equity ratio has improved to 0.29 in TTM, reflecting better leverage management. The equity ratio of 28.74% suggests a stable financial structure. However, a declining return on equity of 1.16% in TTM indicates issues in generating returns for shareholders.

Cash Flow

The cash flow performance is robust with a significant free cash flow growth rate of 250.57% in TTM, driven by efficient capital management and strong operating cash flows. The operating cash flow to net income ratio is exceptionally high, highlighting strong cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.71B	2.54B	2.01B	1.67B	1.52B
Gross Profit	186.10M	182.35M	170.84M	127.72M	100.55M	87.73M
EBITDA	23.48M	27.37M	33.43M	26.25M	20.92M	12.68M
Net Income	1.31M	4.34M	11.60M	16.67M	12.19M	5.54M
Balance Sheet
Total Assets	393.92M	374.11M	363.43M	289.12M	188.41M	188.00M
Cash, Cash Equivalents and Short-Term Investments	826.32K	672.79K	790.93K	431.58K	519.59K	661.20K
Total Debt	32.96M	168.84M	177.54M	120.48M	67.45M	84.73M
Total Liabilities	280.72M	262.38M	259.26M	196.30M	110.80M	123.21M
Stockholders Equity	113.19M	111.73M	104.17M	92.83M	77.61M	64.79M
Cash Flow
Free Cash Flow	16.65M	47.44M	8.16M	8.20M	19.41M	11.85M
Operating Cash Flow	28.53M	67.87M	19.72M	22.89M	20.94M	15.20M
Investing Cash Flow	-17.79M	-42.11M	-66.27M	-14.36M	-1.47M	-13.31M
Financing Cash Flow	-10.63M	-25.88M	46.91M	-8.62M	-19.61M	-1.57M

Amcon Distributing Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIT, the sentiment is Negative. The current price of 115 is below the 20-day moving average (MA) of 116.41, above the 50-day MA of 113.83, and below the 200-day MA of 118.41, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 86.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIT.

Amcon Distributing Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WILC	75 Outperform	$295.28M	11.17	15.58%	4.71%	12.41%	137.89%
DIT	64 Neutral	$74.87M	55.77	1.18%	0.87%	6.00%	-79.17%
CHEF	63 Neutral	$2.27B	34.77	13.64%	―	7.90%	68.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CVGW	57 Neutral	$453.65M	28.99	6.58%	3.16%	-5.33%	―
UNFI	53 Neutral	$2.55B	―	-7.39%	―	2.60%	-3.23%
HFFG	53 Neutral	$136.85M	―	-18.35%	―	4.88%	-1359.01%