AMCON Distributing Co (DIT) stock analysis

P/E above its 5-year median

AMCON Distributing's P/E of 24.7 is above its own 5-year median of 10.6.

P/E below the industry

AMCON Distributing's P/E of 24.7 is below the Groceries and Related Products median of 27.7.

EV/EBITDA below its 5-year median

AMCON Distributing's EV/EBITDA of 3.0 is below its 5-year median of 3.8.

P/B below the industry

AMCON Distributing's price-to-book of 0.52 is below the Groceries and Related Products median of 3.47.

Trading below fair value

The share price of $62.24 is below our fair value estimate of $218.48.

Margin of safety over 20%

The price is 71.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -42.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 315% over the last twelve months, against a 5-year average of -31.4% a year.

Growing faster than the industry

Revenue grew 10.9% over the last twelve months; the Groceries and Related Products median is 5.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 6.1% over the last twelve months, against 6.7% a year earlier.

Return on equity under 15%

Return on equity was 2.1% over the last twelve months and averaged 7.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

AMCON Distributing's return on equity of 2.1% is below the Groceries and Related Products median of 7.2%.

Earnings shrank over 5 years

Net income shrank 31.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 0.1% over the last twelve months, against a 5-year average of 0.3%.

Net margin below the industry

AMCON Distributing's net margin of 0.1% is below the Groceries and Related Products median of 1.0%.

Low debt

Debt is 9.4% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 7.2% five years ago to 9.4%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 0.1% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.34 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.67; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

AMCON Distributing paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; AMCON Distributing yields 0.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 27.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.