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

We started the process of determining a valid price forecast for Amcon Distributing Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Amcon Distributing Co ranked in the 70th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 100% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for DIT, they are:

• 53% of the company's capital comes from equity, which is greater than only 19.5% of stocks in our cash flow based forecasting set.
• The weighted average cost of capital for the company is 8. This value is greater than merely 2.97% stocks in the Consumer Defensive sector that generate free cash flow.

ABEV, NOMD, BGS, TSN, and GHC 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.