Fundamental analysis: AMCON Distributing Company (DIT)

Awarener score: 7.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Very good) and growth (Average), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

Business has been growing at a low pace. It's been almost average when measured against peer companies.
AMCON Distributing Company business trend stability is very good. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 4.5

DIT profit margins -on goods and services sold- are usually extremely poor. They stand worse than most rival companies.
Business profit on sales tends to be sufficient. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain a disappointment compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still slightly worse than similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 8.3

AMCON Distributing Company profit -on goods and services sold- has been growing at a normal pace. It's been close to average when compared to competitors.
In recent years, earnings -on operations- have been growing at a very good step, which has been somewhat worse than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares encouraging in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be lacking compared to similar stocks.
In past years, profits -before income taxes- grew at an excellent speed. It was somewhat worse than rivals.
In the previous years, growth trend on total net profit has been excellent, and below average when measured against peer companies.
Earnings per share have grown at an excellent rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 3.0

DIT had to pay a lot of income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.0

AMCON Distributing Company usually gets very good returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks great when measured against competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 7.6

DIT usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands more than average in relation to rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is great when measured against industry peers.
In the past twelve months it paid very little dividends, considering the current stock price. It came mediocre against competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved in good shape compared to similar firms.
Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks slightly better than comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.6

AMCON Distributing Company intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be great when measured against peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be impressive in relation to similar firms.
Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains better than most rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks top tier when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
Usually, sales are mostly on cash. It still ranks great when measured against peers.
Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in a weak position compared to competitors.
On average, it takes approximately two months from the purchase to charging customers. It happens to be slightly better than peers.
On average pays suppliers during the first couple of weeks from the purchase. It ranks weak when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's lacking compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat better than rival firms.
Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks great when measured against comparable enterprises.
Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 7.9

AMCON Distributing Company looks cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up in a weak position compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks somewhat better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks top tier when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks impressive in relation to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still impressive in relation to peer companies.

Total score: 6.6

Company at a glance: AMCON Distributing Company (DIT)

Sector, industry: Consumer Defensive, Food Distribution

Market Cap: 0.11 billions

Revenues TTM: 2.15 billions

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.