DIGI INTERNATIONAL INC (DGII)
US2537981027 - Common Stock
DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making DGII a very profitable company, without any liquidiy or solvency issues. DGII has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 2.76% is fine compared to the rest of the industry. DGII outperforms 76.47% of its industry peers.
With a decent Return On Equity value of 3.87%, DGII is doing good in the industry, outperforming 74.51% of the companies in the same industry.
DGII's Return On Invested Capital of 5.23% is fine compared to the rest of the industry. DGII outperforms 76.47% of its industry peers.
DGII had an Average Return On Invested Capital over the past 3 years of 4.84%. This is significantly below the industry average of 11.02%.
The 3 year average ROIC (4.84%) for DGII is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 3.87% | ||
| ROIC | 5.23% |
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 5.31%, DGII belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
DGII's Profit Margin has improved in the last couple of years.
DGII has a better Operating Margin (11.34%) than 86.27% of its industry peers.
In the last couple of years the Operating Margin of DGII has grown nicely.
DGII has a better Gross Margin (58.93%) than 84.31% of its industry peers.
In the last couple of years the Gross Margin of DGII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 5.31% | ||
| GM | 58.93% |
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.
DGII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DGII has more shares outstanding
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.14 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a Altman-Z score of 4.14. This is amongst the best in the industry. DGII outperforms 80.39% of its industry peers.
DGII has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.52, DGII is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that DGII is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, DGII is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 4.14 |
ROIC/WACC0.52
WACC9.98%
2.3 Liquidity
A Current Ratio of 1.73 indicates that DGII should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.73, DGII is in line with its industry, outperforming 43.14% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that DGII should not have too much problems paying its short term obligations.
The Quick ratio of DGII (1.13) is worse than 70.59% 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 | 1.73 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
DGII shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.50%.
Measured over the past years, DGII shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.66% on average per year.
Looking at the last year, DGII shows a decrease in Revenue. The Revenue has decreased by -4.66% in the last 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)-0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-6.34%
3.2 Future
Based on estimates for the next years, DGII will show a decrease in Earnings Per Share. The EPS will decrease by -0.36% on average per year.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y5.08%
EPS Next 2Y-6.74%
EPS Next 3Y-0.36%
EPS Next 5YN/A
Revenue Next Year1.09%
Revenue Next 2Y3.16%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.45, which indicates a correct valuation of DGII.
82.35% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
DGII is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.70, the valuation of DGII can be described as correct.
Based on the Price/Forward Earnings ratio, DGII is valued a bit cheaper than 72.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, DGII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than 74.51% of the companies in the same industry.
82.35% of the companies in the same industry are more expensive than DGII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 15.04 |
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)3.04
PEG (5Y)0.29
EPS Next 2Y-6.74%
EPS Next 3Y-0.36%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DIGI INTERNATIONAL INC
NASDAQ:DGII (12/20/2024, 8:05:16 PM)
After market: 30.74 0 (0%)30.74
-1.51 (-4.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.33%
Inst Owner Change1.71%
Ins Owners2.32%
Ins Owner Change4.12%
Market Cap1.13B
Analysts80
Price Target37.84 (23.1%)
Short Float %7.18%
Short Ratio13.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.97%
Min EPS beat(2)-0.81%
Max EPS beat(2)2.74%
EPS beat(4)3
Avg EPS beat(4)3.03%
Min EPS beat(4)-0.81%
Max EPS beat(4)7.09%
EPS beat(8)7
Avg EPS beat(8)5.66%
EPS beat(12)11
Avg EPS beat(12)9.91%
EPS beat(16)14
Avg EPS beat(16)5.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-1.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)-1.04%
Revenue beat(8)3
Avg Revenue beat(8)0.01%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)1.11%
PT rev (1m)0%
PT rev (3m)9.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.8%
Revenue NY rev (1m)-1.99%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.7 | ||
| P/S | 2.67 | ||
| P/FCF | 14.02 | ||
| P/OCF | 13.64 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.04 |
EPS(TTM)1.99
EY6.47%
EPS(NY)2.09
Fwd EY6.8%
FCF(TTM)2.19
FCFY7.13%
OCF(TTM)2.25
OCFY7.33%
SpS11.5
BVpS15.76
TBVpS-0.4
PEG (NY)3.04
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 3.87% | ||
| ROCE | 6.63% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.44% | ||
| ROICexgc | 37.05% | ||
| OM | 11.34% | ||
| PM (TTM) | 5.31% | ||
| GM | 58.93% | ||
| FCFM | 19.07% |
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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 6.62% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 3.26 | ||
| Cash Conversion | 101.7% | ||
| Profit Quality | 359.33% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.14 |
F-Score5
WACC9.98%
ROIC/WACC0.52
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)-0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%0%
EPS Next Y5.08%
EPS Next 2Y-6.74%
EPS Next 3Y-0.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-6.34%
Revenue Next Year1.09%
Revenue Next 2Y3.16%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
EBIT growth 1Y-4.17%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year29.24%
EBIT Next 3Y14.25%
EBIT Next 5YN/A
FCF growth 1Y149.54%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y126.1%
OCF growth 3Y12.91%
OCF growth 5Y23.47%