AMCON Distributing Co. ($DIT) Cautious Buy or Hold to $81 Confident Investor Rating: Fair

Company name AMCON Distributing Co.
Stock ticker DIT
Live stock price [stckqut]DIT[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $81.29
Target stock price (averages with growth) $64.86
Target stock price (averages with no growth) $43.08
Target stock price (manual assumptions) $81.45

The following company description is from Google Finance: http://www.google.com/finance?q=dit

AMCON Distributing Company (AMCON) operates in two segments: wholesale distribution segment (Wholesale Segment) and retail health food segment (Retail Segment). The Company’s Wholesale Segment distributes consumer products in the Central, Rocky Mountain, and Southern regions of the United States. Its retail health food segment (Retail Segment) operates 14 health food retail stores located throughout the Midwest and Florida. During the fiscal year ended September 30, 2012 (fiscal 2012), sales of cigarettes represented 73% of the Company’s consolidated revenue. During fiscal 2012, sales of candy, beverages, food service, groceries, health food products, paper products, health and beauty care products, and tobacco products represented approximately 27% of consolidated revenue.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in AMCON Distributing Co. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $80.69

Growth: 0.1

Current EPS (TTM): $9.05

P/E: 9

Future EPS Calc: $14.57

Future Stock Price Calc: $131.17

Target stock price: $81.45

I hope that this makes you a better investor. [/s2If]

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