DIGI INTERNATIONAL INC (DGII)
US2537981027 - Common Stock
DGII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. DGII scores excellent on profitability, but there are some minor concerns on its financial health. 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.
DGII had positive earnings in 4 of the past 5 years.
Of the past 5 years DGII 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.07%, DGII is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
With a decent Return On Equity value of 3.02%, DGII is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The Return On Invested Capital of DGII (5.00%) is better than 72.55% of its industry peers.
DGII had an Average Return On Invested Capital over the past 3 years of 3.64%. This is significantly below the industry average of 10.05%.
The last Return On Invested Capital (5.00%) for DGII is above the 3 year average (3.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 3.02% | ||
| ROIC | 5% |
ROA(3y)2.31%
ROA(5y)2.2%
ROE(3y)3.55%
ROE(5y)3.16%
ROIC(3y)3.64%
ROIC(5y)3.01%
1.3 Margins
The Profit Margin of DGII (3.94%) is better than 78.43% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII has a better Operating Margin (10.83%) than 86.27% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
The Gross Margin of DGII (57.91%) is better than 82.35% of its industry peers.
DGII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.83% | ||
| PM (TTM) | 3.94% | ||
| GM | 57.91% |
OM growth 3Y40.25%
OM growth 5Y52.48%
PM growth 3Y22.79%
PM growth 5Y51.18%
GM growth 3Y3.22%
GM growth 5Y3.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DGII is destroying value.
DGII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DGII has an Altman-Z score of 3.93. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
DGII has a better Altman-Z score (3.93) than 80.39% of its industry peers.
DGII has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as DGII would need 2.38 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.38, DGII is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that DGII is not too dependend on debt financing.
The Debt to Equity ratio of DGII (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 3.93 |
ROIC/WACC0.5
WACC10%
2.3 Liquidity
A Current Ratio of 2.00 indicates that DGII should not have too much problems paying its short term obligations.
With a Current ratio value of 2.00, DGII perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that DGII should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, DGII is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.31 |
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%.
DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.66% yearly.
EPS 1Y (TTM)-0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%0%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.34%
3.2 Future
Based on estimates for the next years, DGII will show a small growth in Earnings Per Share. The EPS will grow by 1.88% on average per year.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y8.15%
EPS Next 2Y1.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.15%
Revenue Next 2Y3.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS 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
Based on the Price/Earnings ratio of 15.99, the valuation of DGII can be described as correct.
82.35% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.81, DGII is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.79, the valuation of DGII can be described as correct.
70.59% of the companies in the same industry are more expensive than DGII, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. DGII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
DGII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGII is cheaper than 72.55% of the companies in the same industry.
DGII's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DGII is cheaper than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.16 | ||
| EV/EBITDA | 15.95 |
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 decent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)0.3
EPS Next 2Y1.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DIGI INTERNATIONAL INC
NASDAQ:DGII (11/15/2024, 10:00:08 AM)
31.83
+0.15 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.96
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 3.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.83% | ||
| PM (TTM) | 3.94% | ||
| GM | 57.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-0.5%
EPS 3Y87.89%
EPS 5Y
EPS Q2Q%
EPS Next Y8.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y