43.86 USD
+0.29 (+0.67%)
43.86 USD
0 (0%)
Overall DGII gets a fundamental rating of 6 out of 10. We evaluated DGII against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DGII was profitable.
DGII had a positive operating cash flow in the past year.
In the past 5 years DGII has always been profitable.
DGII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DGII's Return On Assets of 5.54% is fine compared to the rest of the industry. DGII outperforms 77.08% of its industry peers.
DGII's Return On Equity of 6.87% is fine compared to the rest of the industry. DGII outperforms 70.83% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for DGII is significantly below the industry average of 12.35%.
The last Return On Invested Capital (7.52%) for DGII is above the 3 year average (6.07%), which is a sign of increasing profitability.
| 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
DGII has a better Profit Margin (10.14%) than 79.17% of its industry peers.
DGII's Profit Margin has improved in the last couple of years.
DGII has a Operating Margin of 13.52%. This is amongst the best in the industry. DGII outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of DGII has grown nicely.
DGII has a Gross Margin of 62.20%. 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 | 13.52% | ||
| 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
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
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
An Altman-Z score of 7.89 indicates that DGII is not in any danger for bankruptcy at the moment.
The Altman-Z score of DGII (7.89) is better 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.
DGII has a Debt to FCF ratio of 0.39. This is in the better half of the industry: DGII outperforms 77.08% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGII is not too dependend on debt financing.
DGII has a Debt to Equity ratio (0.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 7.89 |
ROIC/WACC0.79
WACC9.56%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DGII should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, DGII is doing worse than 79.17% of the companies in the same industry.
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.
With a Quick ratio value of 1.03, DGII is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 5.53%.
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 1.46% in the past year.
Measured over the past years, DGII shows a quite strong growth in Revenue. The Revenue has been growing by 9.02% on average per year.
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
Based on estimates for the next years, DGII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.19% on average per year.
Based on estimates for the next years, DGII will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
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.
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 20.89, the valuation of DGII can be described as rather expensive.
DGII's Price/Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. DGII is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.75, DGII is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 64.58% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. DGII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DGII is valued a bit cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)0.43
EPS Next 2Y12.43%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
43.86
+0.29 (+0.67%)
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 Cap1.63B
Revenue(TTM)430.22M
Net Income(TTM)42.69M
Analysts81.67
Price Target47.43 (8.14%)
Short Float %4.56%
Short Ratio7.74
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)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%
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)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.75 | ||
| P/S | 3.88 | ||
| P/FCF | 15.81 | ||
| P/OCF | 15.35 | ||
| P/B | 2.63 | ||
| P/tB | 39.36 | ||
| EV/EBITDA | 18.09 |
EPS(TTM)2.1
EY4.79%
EPS(NY)2.34
Fwd EY5.33%
FCF(TTM)2.77
FCFY6.33%
OCF(TTM)2.86
OCFY6.52%
SpS11.31
BVpS16.69
TBVpS1.11
PEG (NY)1.83
PEG (5Y)0.43
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 | 7.89 |
F-Score7
WACC9.56%
ROIC/WACC0.79
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 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.
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.