Is DIGI INTERNATIONAL INC (NASDAQ:DGII) a Strong Candidate for Quality Investing?

In this article we will dive into DIGI INTERNATIONAL INC (NASDAQ:DGII) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DIGI INTERNATIONAL INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Exploring Why NASDAQ:DGII Holds Appeal for Quality Investors.

• DIGI INTERNATIONAL INC has demonstrated significant revenue growth over the past 5 years, with a 10.78% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 37.05%, DIGI INTERNATIONAL INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 1.52, DIGI INTERNATIONAL INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• DIGI INTERNATIONAL INC demonstrates consistent Profit Quality over the past 5 years, with a strong 322.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• DIGI INTERNATIONAL INC has experienced impressive EBIT growth over the past 5 years, with 36.9% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, DIGI INTERNATIONAL INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NASDAQ:DGII

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. DGII scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DGII is valued correctly, but it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of DGII

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.