DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
USA - NASDAQ:DGII - US2537981027 - Common Stock
37.91 USD
-0.29 (-0.76%)
37.91 USD
0 (0%)
Taking everything into account, DGII scores 6 out of 10 in our fundamental rating. DGII was compared to 48 industry peers in the Communications Equipment industry. DGII gets an excellent profitability rating and is at the same time showing great financial health properties. DGII is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DGII had positive earnings in the past year.
DGII had a positive operating cash flow in the past year.
Each year in the past 5 years DGII has been profitable.
In the past 5 years DGII always reported a positive cash flow from operatings.
1.2 Ratios
DGII's Return On Assets of 5.54% is fine compared to the rest of the industry. DGII outperforms 75.00% of its industry peers.
With a decent Return On Equity value of 6.87%, DGII is doing good in the industry, outperforming 70.83% of the companies in the same industry.
DGII has a better Return On Invested Capital (6.60%) than 72.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DGII is significantly below the industry average of 13.08%.
The 3 year average ROIC (4.84%) for DGII is below the current ROIC(6.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.87% | ||
| ROIC | 6.6% |
ROA(3y)2.67%
ROA(5y)2.25%
ROE(3y)4.11%
ROE(5y)3.36%
ROIC(3y)4.84%
ROIC(5y)3.62%
1.3 Margins
Looking at the Profit Margin, with a value of 10.14%, DGII belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII's Operating Margin of 13.52% is fine compared to the rest of the industry. DGII outperforms 79.17% of its industry peers.
In the last couple of years the Operating Margin of DGII has grown nicely.
DGII has a better Gross Margin (62.20%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of DGII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.52% | ||
| PM (TTM) | 10.14% | ||
| GM | 62.2% |
OM growth 3Y44.91%
OM growth 5Y23.58%
PM growth 3Y16.34%
PM growth 5Y6.17%
GM growth 3Y2.95%
GM growth 5Y4.71%
2. Health
2.1 Basic Checks
DGII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DGII has more shares outstanding
DGII has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
DGII has an Altman-Z score of 7.07. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DGII (7.07) is better than 85.42% of its industry peers.
DGII has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.39, DGII is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that DGII is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, DGII is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 7.07 |
ROIC/WACC0.7
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DGII should not have too much problems paying its short term obligations.
DGII's Current ratio of 1.43 is on the low side compared to the rest of the industry. DGII is outperformed by 75.00% of its industry peers.
DGII has a Quick Ratio of 1.03. This is a normal value and indicates that DGII is financially healthy and should not expect problems in meeting its short term obligations.
DGII has a Quick ratio of 1.03. This is in the lower half of the industry: DGII underperforms 75.00% of its industry peers.
DGII does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
DGII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.52%.
DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.66% yearly.
The Revenue has decreased by -2.37% in the past year.
Measured over the past years, DGII shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
EPS 1Y (TTM)3.52%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%6%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%2.2%
3.2 Future
Based on estimates for the next years, DGII will show a small growth in Earnings Per Share. The EPS will grow by 7.81% on average per year.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
EPS Next Y5.01%
EPS Next 2Y6.11%
EPS Next 3Y7.81%
EPS Next 5YN/A
Revenue Next Year0.68%
Revenue Next 2Y4.04%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.40, which indicates a rather expensive current valuation of DGII.
Based on the Price/Earnings ratio, DGII is valued a bit cheaper than 75.00% of the companies in the same industry.
DGII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
A Price/Forward Earnings ratio of 16.92 indicates a correct valuation of DGII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 72.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. DGII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 70.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DGII is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)3.67
PEG (5Y)0.35
EPS Next 2Y6.11%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.91
-0.29 (-0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.2%
Inst Owner Change-0.11%
Ins Owners2.22%
Ins Owner Change-0.03%
Market Cap1.41B
Analysts80
Price Target41.82 (10.31%)
Short Float %4.15%
Short Ratio7.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.44%
Min EPS beat(2)3.44%
Max EPS beat(2)3.45%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-1.13%
Max EPS beat(4)3.45%
EPS beat(8)6
Avg EPS beat(8)3.09%
EPS beat(12)10
Avg EPS beat(12)4.89%
EPS beat(16)14
Avg EPS beat(16)11.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)-0.77%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.52%
PT rev (1m)1.23%
PT rev (3m)10.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.92 | ||
| P/S | 3.34 | ||
| P/FCF | 13.62 | ||
| P/OCF | 13.23 | ||
| P/B | 2.26 | ||
| P/tB | 33.92 | ||
| EV/EBITDA | 15.84 |
EPS(TTM)2.06
EY5.43%
EPS(NY)2.24
Fwd EY5.91%
FCF(TTM)2.78
FCFY7.34%
OCF(TTM)2.87
OCFY7.56%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)3.67
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.87% | ||
| ROCE | 8.35% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 55.15% | ||
| OM | 13.52% | ||
| PM (TTM) | 10.14% | ||
| GM | 62.2% | ||
| FCFM | 24.54% |
ROA(3y)2.67%
ROA(5y)2.25%
ROE(3y)4.11%
ROE(5y)3.36%
ROIC(3y)4.84%
ROIC(5y)3.62%
ROICexc(3y)5.05%
ROICexc(5y)3.91%
ROICexgc(3y)38.34%
ROICexgc(5y)28.01%
ROCE(3y)6.13%
ROCE(5y)4.58%
ROICexcg growth 3Y38.18%
ROICexcg growth 5Y29.38%
ROICexc growth 3Y34.71%
ROICexc growth 5Y12.48%
OM growth 3Y44.91%
OM growth 5Y23.58%
PM growth 3Y16.34%
PM growth 5Y6.17%
GM growth 3Y2.95%
GM growth 5Y4.71%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 9.13% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 7.35 | ||
| Cash Conversion | 117.19% | ||
| Profit Quality | 242% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 7.07 |
F-Score7
WACC9.47%
ROIC/WACC0.7
Cap/Depr(3y)8.22%
Cap/Depr(5y)8.03%
Cap/Sales(3y)0.67%
Cap/Sales(5y)0.61%
Profit Quality(3y)224.85%
Profit Quality(5y)321.51%
High Growth Momentum
Growth
EPS 1Y (TTM)3.52%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%6%
EPS Next Y5.01%
EPS Next 2Y6.11%
EPS Next 3Y7.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%2.2%
Revenue Next Year0.68%
Revenue Next 2Y4.04%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y21.92%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year37.61%
EBIT Next 3Y18.84%
EBIT Next 5YN/A
FCF growth 1Y215.62%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y210%
OCF growth 3Y12.91%
OCF growth 5Y23.47%