DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII • US2537981027
48.995 USD
+0.73 (+1.52%)
Last: Feb 17, 2026, 02:52 PM
We assign a fundamental rating of 6 out of 10 to DGII. DGII was compared to 48 industry peers in the Communications Equipment industry. DGII has an excellent profitability rating, 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
- 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.
- Each year in the past 5 years DGII had a positive operating cash flow.
1.2 Ratios
- DGII has a better Return On Assets (4.62%) than 75.00% of its industry peers.
- DGII has a Return On Equity of 6.54%. This is in the better half of the industry: DGII outperforms 70.83% of its industry peers.
- DGII has a better Return On Invested Capital (6.63%) than 72.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DGII is significantly below the industry average of 11.27%.
- The 3 year average ROIC (6.07%) for DGII is below the current ROIC(6.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 6.54% | ||
| ROIC | 6.63% |
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
- Looking at the Profit Margin, with a value of 9.45%, DGII is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
- In the last couple of years the Profit Margin of DGII has grown nicely.
- DGII has a better Operating Margin (13.20%) than 81.25% of its industry peers.
- DGII's Operating Margin has improved in the last couple of years.
- DGII has a Gross Margin of 62.98%. This is amongst the best in the industry. DGII outperforms 81.25% of its industry peers.
- In the last couple of years the Gross Margin of DGII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.2% | ||
| PM (TTM) | 9.45% | ||
| GM | 62.98% |
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
- DGII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- DGII has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DGII has more shares outstanding
- Compared to 1 year ago, DGII has a worse debt to assets ratio.
2.2 Solvency
- DGII has an Altman-Z score of 5.24. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
- DGII has a better Altman-Z score (5.24) than 79.17% of its industry peers.
- The Debt to FCF ratio of DGII is 1.21, which is an excellent value as it means it would take DGII, only 1.21 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.21, DGII is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- DGII has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
- DGII has a Debt to Equity ratio (0.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 5.24 |
ROIC/WACC0.71
WACC9.39%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that DGII should not have too much problems paying its short term obligations.
- DGII's Current ratio of 1.24 is on the low side compared to the rest of the industry. DGII is outperformed by 83.33% of its industry peers.
- A Quick Ratio of 0.90 indicates that DGII may have some problems paying its short term obligations.
- DGII has a Quick ratio of 0.90. This is amonst the worse of the industry: DGII underperforms 81.25% 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 | 1.24 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.46% over the past year.
- DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.58% yearly.
- The Revenue has been growing slightly by 6.40% in the past year.
- 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)7.46%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%12%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%17.9%
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 Y15.76%
EPS Next 2Y12.21%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue Next Year11.7%
Revenue Next 2Y8.54%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.68, the valuation of DGII can be described as rather expensive.
- Based on the Price/Earnings ratio, DGII is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.19. DGII is around the same levels.
- A Price/Forward Earnings ratio of 18.53 indicates a rather expensive valuation of DGII.
- 70.83% of the companies in the same industry are more expensive than DGII, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DGII to the average of the S&P500 Index (28.06), we can say DGII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
- DGII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGII is cheaper than 60.42% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 77.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.55 | ||
| EV/EBITDA | 20.11 |
4.3 Compensation for Growth
- DGII's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)0.47
EPS Next 2Y12.21%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
- DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:DGII (2/17/2026, 2:52:47 PM)
48.995
+0.73 (+1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)05-05 2026-05-05
Inst Owners101.48%
Inst Owner Change-1.61%
Ins Owners2.61%
Ins Owner Change5.31%
Market Cap1.84B
Revenue(TTM)448.82M
Net Income(TTM)42.43M
Analysts81.67
Price Target49.13 (0.28%)
Short Float %3.76%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)4.1%
Min EPS beat(2)0.13%
Max EPS beat(2)8.07%
EPS beat(4)4
Avg EPS beat(4)3.77%
Min EPS beat(4)0.13%
Max EPS beat(4)8.07%
EPS beat(8)6
Avg EPS beat(8)2.37%
EPS beat(12)10
Avg EPS beat(12)3.97%
EPS beat(16)14
Avg EPS beat(16)7%
Revenue beat(2)2
Avg Revenue beat(2)2.53%
Min Revenue beat(2)1.68%
Max Revenue beat(2)3.39%
Revenue beat(4)2
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)4
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)0.83%
PT rev (1m)3.58%
PT rev (3m)17.48%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)8.36%
EPS NY rev (1m)3.92%
EPS NY rev (3m)8.49%
Revenue NQ rev (1m)4.95%
Revenue NQ rev (3m)8.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 18.53 | ||
| P/S | 4.11 | ||
| P/FCF | 16.55 | ||
| P/OCF | 16.18 | ||
| P/B | 2.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.11 |
EPS(TTM)2.16
EY4.41%
EPS(NY)2.64
Fwd EY5.4%
FCF(TTM)2.96
FCFY6.04%
OCF(TTM)3.03
OCFY6.18%
SpS11.93
BVpS17.26
TBVpS-2.3
PEG (NY)1.44
PEG (5Y)0.47
Graham Number28.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 6.54% | ||
| ROCE | 7.36% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 139.86% | ||
| OM | 13.2% | ||
| PM (TTM) | 9.45% | ||
| GM | 62.98% | ||
| FCFM | 24.81% |
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)63.49%
ROICexgc(5y)49.98%
ROCE(3y)6.74%
ROCE(5y)5.47%
ROICexgc growth 3Y33.25%
ROICexgc growth 5Y52.36%
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 6.94% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 9.17 | ||
| Cash Conversion | 119.31% | ||
| Profit Quality | 262.43% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 5.24 |
F-Score5
WACC9.39%
ROIC/WACC0.71
Cap/Depr(3y)9.03%
Cap/Depr(5y)8.63%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.67%
Profit Quality(3y)249.43%
Profit Quality(5y)293.19%
High Growth Momentum
Growth
EPS 1Y (TTM)7.46%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%12%
EPS Next Y15.76%
EPS Next 2Y12.21%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue 1Y (TTM)6.4%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%17.9%
Revenue Next Year11.7%
Revenue Next 2Y8.54%
Revenue Next 3Y8.07%
Revenue Next 5YN/A
EBIT growth 1Y20.16%
EBIT growth 3Y13.5%
EBIT growth 5Y37.63%
EBIT Next Year49.19%
EBIT Next 3Y20.6%
EBIT Next 5YN/A
FCF growth 1Y126.95%
FCF growth 3Y43.33%
FCF growth 5Y25.69%
OCF growth 1Y115.89%
OCF growth 3Y41.96%
OCF growth 5Y25.64%
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.
Can you provide the valuation status for DIGI INTERNATIONAL INC?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is DIGI INTERNATIONAL INC?
The financial health rating of DIGI INTERNATIONAL INC (DGII) is 5 / 10.