AMCON Distributing Company Common Stock (DIT)

FairStock Score: 21/100 — RISKY

Key Financials

Strengths

• Generates $18 million in annual free cash flow (21.3% yield on market cap)
• Revenue growth of 15.5% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($35) with negative 152% margin of safety—limited downside protection

AI Analysis

AMCON Distributing Company Common Stock is a micro-cap consumer defensive company valued at $87 million. Revenue stands at $2.4 billion. From a quality standpoint, AMCON shows Altman Z-Score of 2.8 in the grey zone and modest 0% ROE. On valuation, the stock is commanding a steep 185.7x multiple, with trades far above its Graham Number ($35) with no margin of safety. Growth dynamics show revenue growing at 15.5% and profit growth of -36.8%. Our composite FairStock Score of 21/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

AMCON's 16% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $18 million in annual free cash flow (21.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 186x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer