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Amcon Distributing CoDIT +6.64%60 Gross Margin % is 5.96% as of Jun. 2026, which is 1% below its 10-year median of 6.02. GuruFocus rates DIT with a GF Score™ of 60/100 and a GF Value™ of $94.85 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 304 Retail - Defensive companies, Amcon Distributing Co ranks worse than 91.78% on this metric.
Amcon Distributing Co (AMEX:DIT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Amcon Distributing Co had a gross margin of 5.96% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Amcon Distributing Co Gross Margin % Related Terms
Amcon Distributing Co Gross Margin % Historical Data
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The historical data trend for Amcon Distributing Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Food Distribution subindustry, Amcon Distributing Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Amcon Distributing Co Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Amcon Distributing Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amcon Distributing Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Amcon Distributing Co (DIT) has a Gross Margin % of 5.96% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Amcon Distributing Co and its competitors. This is near median its historical median of 6.02. Over the past decade, Amcon Distributing Co's Gross Margin % has ranged from 5.68 to 6.73. According to the industry distribution chart, Amcon Distributing Co ranks #279 out of 304 companies in the Retail - Defensive industry, placing it in the top 91.8%.
Is Amcon Distributing Co's Gross Margin % too high?
Amcon Distributing Co's current Gross Margin % of 5.96% is near median its 10-year median of 6.02. Over the past 10 years, this metric has ranged from a low of 5.68 to a high of 6.73. The Retail - Defensive industry median Gross Margin % is 24.08. Amcon Distributing Co's value of 5.96% is 75.2% below this industry median. Based on the distribution chart, Amcon Distributing Co ranks #279 out of 304 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Amcon Distributing Co has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Amcon Distributing Co's Gross Margin % compare to HCIL and TWG?
According to the Retail - Defensive industry distribution chart, Amcon Distributing Co ranks #279 out of 304 companies for Gross Margin %. This places Amcon Distributing Co in the lower half of its industry. The industry median Gross Margin % is 24.08. Amcon Distributing Co's value of 5.96% is 75.2% below this benchmark. Historically, Amcon Distributing Co's own Gross Margin % has ranged from 5.68 to 6.73 over the past decade. While the company's 10-year median is 6.02 vs. the industry median of 24.08, Amcon Distributing Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 304 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Amcon Distributing Co's current Gross Margin % of 5.96% is 75.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Amcon Distributing Co and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amcon Distributing Co's current Gross Margin % is 5.96%, which is near median its own 10-year median of 6.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amcon Distributing Co stock overvalued right now?
Based on GuruFocus' analysis, Amcon Distributing Co (DIT) is currently considered Modestly Undervalued. The stock's GF Value™ is $94.85, compared to a current price of $71.50 — trading 24.6% below its estimated fair value. The current Gross Margin % is 5.96%, which is near median its 10-year median of 6.02 and 75.2% below the Retail - Defensive industry median of 24.08. Amcon Distributing Co's overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Amcon Distributing Co (DIT), the current Gross Margin % is 5.96% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Amcon Distributing Co (DIT) Overvalued in 2026?
Based on GuruFocus' analysis, Amcon Distributing Co stock appears to be undervalued.
The current stock price of $71.50 is trading 24.6% below its estimated GF Value™ of $94.85.
GuruFocus considers Amcon Distributing Co to be Modestly Undervalued.
Key valuation signals for DIT:
Gross Margin %: 5.96% (near median its 10-year median of 6.02)
GF Value™: $94.85 vs. price of $71.50 (24.6% below fair value)
Industry Position: 75.2% below the Retail - Defensive median (#279 of 304)
No single metric tells the full story. See the DIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amcon Distributing Co is engaged in the wholesale and retail distribution of consumer products such as cigarettes, tobacco, confectionery, health food, and others. It operates in two segments: Wholesale distribution segment distributing consumer products to the retail outlets including convenience stores, grocery stores, liquor stores, drug stores and tobacco shops in the Central, Rocky Mountain, and Southern regions of the United States; and the Retail health food segment is a specialty retailer of natural/organic groceries and dietary supplements throughout the Midwest and Florida. The company earns a majority of the revenue from the Wholesale distribution segment.
60GF Score
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