DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII - Nasdaq - US2537981027 - Common Stock - Currency: USD
Taking everything into account, DGII scores 6 out of 10 in our fundamental rating. DGII was compared to 49 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.
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 has a Return On Assets of 4.48%. This is in the better half of the industry: DGII outperforms 75.51% of its industry peers.
With a decent Return On Equity value of 6.03%, DGII is doing good in the industry, outperforming 73.47% of the companies in the same industry.
The Return On Invested Capital of DGII (5.52%) is better than 75.51% 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 10.99%.
The last Return On Invested Capital (5.52%) for DGII is above the 3 year average (4.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 6.03% | ||
| ROIC | 5.52% |
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
With an excellent Profit Margin value of 8.45%, DGII belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
DGII's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.69%, DGII belongs to the top of the industry, outperforming 85.71% 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 (60.03%) than 83.67% of its industry peers.
In the last couple of years the Gross Margin of DGII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.69% | ||
| PM (TTM) | 8.45% | ||
| GM | 60.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DGII is destroying value.
The number of shares outstanding for DGII has been increased compared to 1 year ago.
DGII has more shares outstanding than it did 5 years ago.
DGII has a better debt/assets ratio than last year.
2.2 Solvency
DGII has an Altman-Z score of 4.08. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.08, DGII is doing good in the industry, outperforming 79.59% of the companies in the same industry.
DGII has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
DGII's Debt to FCF ratio of 1.04 is fine compared to the rest of the industry. DGII outperforms 75.51% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that DGII is not too dependend on debt financing.
DGII has a Debt to Equity ratio (0.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.04 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.56
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DGII should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, DGII is doing worse than 63.27% of the companies in the same industry.
DGII has a Quick Ratio of 1.06. This is a normal value and indicates that DGII is financially healthy and should not expect problems in meeting its short term obligations.
DGII has a Quick ratio of 1.06. This is in the lower half of the industry: DGII underperforms 69.39% 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 | 1.61 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
DGII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.50%.
The Earnings Per Share has been growing by 52.66% on average over the past years. This is a very strong growth
The Revenue has decreased by -4.47% in the past year.
DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
EPS 1Y (TTM)0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%4.17%
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-2.1%
3.2 Future
The Earnings Per Share is expected to grow by 5.10% on average over the next years.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y1.4%
EPS Next 2Y3.58%
EPS Next 3Y5.1%
EPS Next 5YN/A
Revenue Next Year0.32%
Revenue Next 2Y2.32%
Revenue Next 3Y3.27%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.98 indicates a correct valuation of DGII.
77.55% 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 rather cheap valuation when compared to the S&P500 average which is at 27.63.
With a Price/Forward Earnings ratio of 12.22, DGII is valued correctly.
DGII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 79.59% of the companies in the same industry.
DGII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a rather cheap valuation: DGII is cheaper than 83.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DGII does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)9.26
PEG (5Y)0.25
EPS Next 2Y3.58%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.08
-0.22 (-0.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.78%
Inst Owner Change-0.02%
Ins Owners1.67%
Ins Owner Change13.05%
Market Cap962.35M
Analysts80
Price Target37.43 (43.52%)
Short Float %5.43%
Short Ratio8.62
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)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-1.13%
Max EPS beat(2)2.74%
EPS beat(4)2
Avg EPS beat(4)0.97%
Min EPS beat(4)-1.13%
Max EPS beat(4)3.09%
EPS beat(8)6
Avg EPS beat(8)4.07%
EPS beat(12)10
Avg EPS beat(12)8.08%
EPS beat(16)14
Avg EPS beat(16)12.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)-1.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.75%
Revenue beat(12)6
Avg Revenue beat(12)0.88%
Revenue beat(16)9
Avg Revenue beat(16)0.84%
PT rev (1m)0%
PT rev (3m)-1.08%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-4.92%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 12.22 | ||
| P/S | 2.28 | ||
| P/FCF | 10.5 | ||
| P/OCF | 10.22 | ||
| P/B | 1.63 | ||
| P/tB | 431.55 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)2.01
EY7.71%
EPS(NY)2.14
Fwd EY8.19%
FCF(TTM)2.48
FCFY9.52%
OCF(TTM)2.55
OCFY9.78%
SpS11.43
BVpS16.01
TBVpS0.06
PEG (NY)9.26
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 6.03% | ||
| ROCE | 6.99% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 42.63% | ||
| OM | 11.69% | ||
| PM (TTM) | 8.45% | ||
| GM | 60.03% | ||
| FCFM | 21.72% |
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-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.04 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 7.43% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 3.85 | ||
| Cash Conversion | 113.29% | ||
| Profit Quality | 257.08% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.08 |
F-Score6
WACC9.85%
ROIC/WACC0.56
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%4.17%
EPS Next Y1.4%
EPS Next 2Y3.58%
EPS Next 3Y5.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-2.1%
Revenue Next Year0.32%
Revenue Next 2Y2.32%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
EBIT growth 1Y-1.99%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year29.82%
EBIT Next 3Y14.25%
EBIT Next 5YN/A
FCF growth 1Y91.57%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y87.12%
OCF growth 3Y12.91%
OCF growth 5Y23.47%