AMCON Distributing Company (DIT): Price and Financial Metrics

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DIT Price/Volume Stats

AMCON Distributing Company (DIT) Company Bio

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 in two segments, Wholesale Distribution and Retail Health Food. 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. 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. As of November 9, 2020, it operated 21 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.

DIT Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Amcon Distributing Co. To summarize, we found that Amcon Distributing Co ranked in the 76th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 192% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Amcon Distributing Co, consider:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 53. Notably, its equity weight is greater than only 10.16% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
• Amcon Distributing Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 1.85% of tickers in our DCF set.

LAUR, AGFS, BTI, GHC, and VLGEA can be thought of as valuation peers to DIT, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.