Why DIGI INTERNATIONAL INC (NASDAQ:DGII) qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if DIGI INTERNATIONAL INC (NASDAQ:DGII) is suited for quality investing. Investors should of course do their own research, but we spotted DIGI INTERNATIONAL INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NASDAQ:DGII.

• 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.
• The ROIC excluding cash and goodwill of DIGI INTERNATIONAL INC stands at 42.63%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of DIGI INTERNATIONAL INC stands at 1.04, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 36.9%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of DIGI INTERNATIONAL INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

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

Overall DGII gets a fundamental rating of 6 out of 10. We evaluated DGII against 52 industry peers in the Communications Equipment industry. DGII has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DGII has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of DGII for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.