47 USD
+0.7 (+1.51%)
47 USD
0 (0%)
DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. DGII scores excellent on profitability, but there are some minor concerns on its financial health. DGII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DGII was profitable.
DGII had a positive operating cash flow in the past year.
Each year in the past 5 years DGII has been profitable.
Of the past 5 years DGII 4 years had a positive operating cash flow.
1.2 Ratios
DGII has a better Return On Assets (5.54%) than 77.08% 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's Return On Invested Capital of 7.52% is fine compared to the rest of the industry. DGII outperforms 72.92% of its industry peers.
DGII had an Average Return On Invested Capital over the past 3 years of 6.07%. This is significantly below the industry average of 12.31%.
The 3 year average ROIC (6.07%) for DGII is below the current ROIC(7.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.87% | ||
| ROIC | 7.52% |
ROA(3y)3.38%
ROA(5y)2.82%
ROE(3y)4.96%
ROE(5y)4.19%
ROIC(3y)6.07%
ROIC(5y)4.93%
1.3 Margins
With a decent Profit Margin value of 10.14%, DGII is doing good in the industry, outperforming 79.17% of the companies in the same industry.
DGII's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.52%, DGII belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
DGII's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.20%, DGII belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 3Y9.68%
OM growth 5Y26.24%
PM growth 3Y23.81%
PM growth 5Y25.82%
GM growth 3Y4.13%
GM growth 5Y4.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGII is destroying value.
Compared to 1 year ago, DGII has more shares outstanding
The number of shares outstanding for DGII has been increased compared to 5 years ago.
DGII has a worse debt/assets ratio than last year.
2.2 Solvency
DGII has an Altman-Z score of 8.41. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
DGII has a better Altman-Z score (8.41) than 87.50% of its industry peers.
The Debt to FCF ratio of DGII is 0.39, which is an excellent value as it means it would take DGII, only 0.39 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.39, DGII is doing good in the industry, outperforming 79.17% of the companies in the same industry.
DGII has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
DGII's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. DGII outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 8.41 |
ROIC/WACC0.78
WACC9.7%
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 77.08% of its industry peers.
A Quick Ratio of 1.03 indicates that DGII should not have too much problems paying its short term obligations.
DGII's Quick ratio of 1.03 is on the low side compared to the rest of the industry. DGII is outperformed by 75.00% of its industry peers.
The current and quick ratio evaluation for DGII is rather negative, while it does have 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
The Earnings Per Share has been growing slightly by 5.53% over the past year.
The Earnings Per Share has been growing by 48.58% on average over the past years. This is a very strong growth
DGII shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.02% yearly.
EPS 1Y (TTM)5.53%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%7.69%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%8.84%
3.2 Future
The Earnings Per Share is expected to grow by 11.19% on average over the next years. This is quite good.
DGII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y11.39%
EPS Next 2Y12.43%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue Next Year9.43%
Revenue Next 2Y8.72%
Revenue Next 3Y8.07%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.38, which indicates a rather expensive current valuation of DGII.
68.75% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
DGII's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 20.09, the valuation of DGII can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DGII is valued a bit cheaper than 64.58% of the companies in the same industry.
DGII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 20.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DGII is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.94 | ||
| EV/EBITDA | 19.49 |
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)1.96
PEG (5Y)0.46
EPS Next 2Y12.43%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47
+0.7 (+1.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.07%
Inst Owner Change0.23%
Ins Owners2.46%
Ins Owner Change0.27%
Market Cap1.75B
Revenue(TTM)430.22M
Net Income(TTM)42.69M
Analysts81.67
Price Target47.43 (0.91%)
Short Float %4.28%
Short Ratio8.05
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)13.41%
PT rev (3m)14.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)4.39%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 20.09 | ||
| P/S | 4.16 | ||
| P/FCF | 16.94 | ||
| P/OCF | 16.45 | ||
| P/B | 2.82 | ||
| P/tB | 42.17 | ||
| EV/EBITDA | 19.49 |
EPS(TTM)2.1
EY4.47%
EPS(NY)2.34
Fwd EY4.98%
FCF(TTM)2.77
FCFY5.9%
OCF(TTM)2.86
OCFY6.08%
SpS11.31
BVpS16.69
TBVpS1.11
PEG (NY)1.96
PEG (5Y)0.46
Graham Number28.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.87% | ||
| ROCE | 8.35% | ||
| ROIC | 7.52% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 62.9% | ||
| OM | 13.52% | ||
| PM (TTM) | 10.14% | ||
| GM | 62.2% | ||
| FCFM | 24.54% |
ROA(3y)3.38%
ROA(5y)2.82%
ROE(3y)4.96%
ROE(5y)4.19%
ROIC(3y)6.07%
ROIC(5y)4.93%
ROICexc(3y)6.3%
ROICexc(5y)5.25%
ROICexgc(3y)31.39%
ROICexgc(5y)30.72%
ROCE(3y)6.74%
ROCE(5y)5.47%
ROICexgc growth 3Y-47.18%
ROICexgc growth 5Y-12.56%
ROICexc growth 3Y10.03%
ROICexc growth 5Y20.82%
OM growth 3Y9.68%
OM growth 5Y26.24%
PM growth 3Y23.81%
PM growth 5Y25.82%
GM growth 3Y4.13%
GM growth 5Y4.06%
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 | 8.41 |
F-Score7
WACC9.7%
ROIC/WACC0.78
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.53%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%7.69%
EPS Next Y11.39%
EPS Next 2Y12.43%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%8.84%
Revenue Next Year9.43%
Revenue Next 2Y8.72%
Revenue Next 3Y8.07%
Revenue Next 5YN/A
EBIT growth 1Y21.92%
EBIT growth 3Y13.5%
EBIT growth 5Y37.63%
EBIT Next Year49.19%
EBIT Next 3Y20.6%
EBIT Next 5YN/A
FCF growth 1Y61.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.16%
OCF growth 3YN/A
OCF growth 5YN/A
DIGI INTERNATIONAL INC / DGII FAQ
What is the ChartMill fundamental rating of DIGI INTERNATIONAL INC (DGII) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DGII.
What is the valuation status for DGII stock?
ChartMill assigns a valuation rating of 4 / 10 to DIGI INTERNATIONAL INC (DGII). This can be considered as Fairly Valued.
How profitable is DIGI INTERNATIONAL INC (DGII) stock?
DIGI INTERNATIONAL INC (DGII) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for DGII stock?
The Earnings per Share (EPS) of DIGI INTERNATIONAL INC (DGII) is expected to grow by 11.39% in the next year.