DIGI INTERNATIONAL INC (DGII) Fundamental Analysis & Valuation

NASDAQ:DGII • US2537981027

Current stock price

47.47 USD
-1.17 (-2.41%)
At close:
47.47 USD
0 (0%)
After Hours:

This DGII fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. DGII Profitability Analysis

1.1 Basic Checks

  • DGII had positive earnings in the past year.
  • In the past year DGII had a positive cash flow from operations.
  • 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.
DGII Yearly Net Income VS EBIT VS OCF VS FCFDGII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M 40M 60M 80M 100M

1.2 Ratios

  • DGII has a Return On Assets of 4.62%. This is in the better half of the industry: DGII outperforms 77.08% of its industry peers.
  • DGII has a Return On Equity of 6.54%. This is in the better half of the industry: DGII outperforms 72.92% of its industry peers.
  • The Return On Invested Capital of DGII (6.63%) is better than 75.00% of its industry peers.
  • DGII had an Average Return On Invested Capital over the past 3 years of 6.07%. This is below the industry average of 10.22%.
  • The 3 year average ROIC (6.07%) for DGII is below the current ROIC(6.63%), indicating increased profibility in the last year.
Industry RankSector 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%
DGII Yearly ROA, ROE, ROICDGII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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.
  • DGII's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 13.20%, DGII belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DGII has grown nicely.
  • DGII has a better Gross Margin (62.98%) than 81.25% of its industry peers.
  • In the last couple of years the Gross Margin of DGII has grown nicely.
Industry RankSector 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%
DGII Yearly Profit, Operating, Gross MarginsDGII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

2. DGII Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGII is destroying value.
  • DGII has more shares outstanding than it did 1 year ago.
  • DGII has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for DGII is higher compared to a year ago.
DGII Yearly Shares OutstandingDGII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
DGII Yearly Total Debt VS Total AssetsDGII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 5.17 indicates that DGII is not in any danger for bankruptcy at the moment.
  • DGII's Altman-Z score of 5.17 is fine compared to the rest of the industry. DGII outperforms 72.92% 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.
  • DGII has a better Debt to FCF ratio (1.21) than 72.92% of its industry peers.
  • DGII has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.21, DGII is doing worse than 60.42% of the companies in the same industry.
  • Although DGII's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 1.21
Altman-Z 5.17
ROIC/WACC0.76
WACC8.71%
DGII Yearly LT Debt VS Equity VS FCFDGII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • DGII has a Current Ratio of 1.24. This is a normal value and indicates that DGII is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.24, DGII is doing worse than 83.33% of the companies in the same industry.
  • DGII has a Quick Ratio of 1.24. This is a bad value and indicates that DGII is not financially healthy enough and could expect problems in meeting its short term obligations.
  • DGII's Quick ratio of 0.90 is on the low side compared to the rest of the industry. DGII is outperformed by 81.25% 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 RankSector Rank
Current Ratio 1.24
Quick Ratio 0.9
DGII Yearly Current Assets VS Current LiabilitesDGII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DGII Growth Analysis

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.
  • The Revenue has been growing by 9.02% on average over the past years. This is quite good.
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

  • DGII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.19% yearly.
  • Based on estimates for the next years, DGII will show a quite strong growth in Revenue. The Revenue will grow by 9.71% on average per year.
EPS Next Y12.23%
EPS Next 2Y13.41%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue Next Year17.56%
Revenue Next 2Y12.27%
Revenue Next 3Y9.71%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
DGII Yearly Revenue VS EstimatesDGII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M 400M 500M
DGII Yearly EPS VS EstimatesDGII Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 1 1.5 2 2.5

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5

4. DGII Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.98 indicates a rather expensive valuation of DGII.
  • Based on the Price/Earnings ratio, DGII is valued a bit cheaper than 70.83% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, DGII is valued at the same level.
  • DGII is valuated rather expensively with a Price/Forward Earnings ratio of 17.58.
  • DGII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 72.92% of the companies in the same industry.
  • DGII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.98
Fwd PE 17.58
DGII Price Earnings VS Forward Price EarningsDGII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than 64.58% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DGII is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.03
EV/EBITDA 19.8
DGII Per share dataDGII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)0.45
EPS Next 2Y13.41%
EPS Next 3Y11.19%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DGII Dividend Analysis

5.1 Amount

  • No dividends for DGII!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DGII Fundamentals: All Metrics, Ratios and Statistics

DIGI INTERNATIONAL INC

NASDAQ:DGII (3/27/2026, 8:11:59 PM)

After market: 47.47 0 (0%)

47.47

-1.17 (-2.41%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-04
Earnings (Next)05-05
Inst Owners100.96%
Inst Owner Change-1.26%
Ins Owners2.64%
Ins Owner Change5.35%
Market Cap1.79B
Revenue(TTM)448.82M
Net Income(TTM)42.43M
Analysts81.67
Price Target51.51 (8.51%)
Short Float %4.5%
Short Ratio5.48
Dividend
Industry RankSector 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)4.84%
PT rev (3m)8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)-3.05%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.42%
Valuation
Industry RankSector Rank
PE 21.98
Fwd PE 17.58
P/S 3.98
P/FCF 16.03
P/OCF 15.68
P/B 2.75
P/tB N/A
EV/EBITDA 19.8
EPS(TTM)2.16
EY4.55%
EPS(NY)2.7
Fwd EY5.69%
FCF(TTM)2.96
FCFY6.24%
OCF(TTM)3.03
OCFY6.38%
SpS11.93
BVpS17.26
TBVpS-2.3
PEG (NY)1.8
PEG (5Y)0.45
Graham Number28.96
Profitability
Industry RankSector 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 RankSector 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 5.17
F-Score5
WACC8.71%
ROIC/WACC0.76
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 Y12.23%
EPS Next 2Y13.41%
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 Year17.56%
Revenue Next 2Y12.27%
Revenue Next 3Y9.71%
Revenue Next 5YN/A
EBIT growth 1Y20.16%
EBIT growth 3Y13.5%
EBIT growth 5Y37.63%
EBIT Next Year54.41%
EBIT Next 3Y20.68%
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 Fundamental Analysis 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.