DIGI INTERNATIONAL INC (DGII) Fundamental Analysis & Valuation

NASDAQ:DGII • US2537981027

50.5 USD
+0.19 (+0.38%)
At close: Mar 11, 2026
50.5 USD
0 (0%)
After Hours: 3/11/2026, 8:00:02 PM

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

Fundamental Rating

6

Overall DGII gets a fundamental rating of 6 out of 10. We evaluated DGII against 48 industry peers in the Communications Equipment industry. While DGII belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DGII has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. DGII Profitability Analysis

1.1 Basic Checks

  • In the past year DGII was profitable.
  • In the past year DGII had a positive cash flow from operations.
  • DGII had positive earnings in each of the past 5 years.
  • In the past 5 years DGII always reported a positive cash flow from operatings.
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

  • The Return On Assets of DGII (4.62%) is better than 77.08% of its industry peers.
  • With a decent Return On Equity value of 6.54%, DGII is doing good in the industry, outperforming 72.92% of the companies in the same industry.
  • The Return On Invested Capital of DGII (6.63%) is better than 75.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DGII is below the industry average of 10.39%.
  • The last Return On Invested Capital (6.63%) for DGII is above the 3 year average (6.07%), which is a sign of increasing profitability.
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

  • DGII's Profit Margin of 9.45% is fine compared to the rest of the industry. DGII outperforms 77.08% of its industry peers.
  • In the last couple of years the Profit Margin of DGII has grown nicely.
  • DGII's Operating Margin of 13.20% is amongst the best of the industry. DGII outperforms 83.33% of its industry peers.
  • DGII's Operating Margin has improved in the last couple of years.
  • DGII's Gross Margin of 62.98% is amongst the best of the industry. DGII outperforms 81.25% of its industry peers.
  • DGII's Gross Margin has improved in the last couple of years.
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

5

2. DGII Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DGII 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.
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 5.41 indicates that DGII is not in any danger for bankruptcy at the moment.
  • DGII has a Altman-Z score of 5.41. This is in the better half of the industry: DGII outperforms 79.17% 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.
  • With a Debt to Equity ratio value of 0.21, DGII perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 1.21
Altman-Z 5.41
ROIC/WACC0.69
WACC9.64%
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.
  • DGII has a Current ratio of 1.24. This is amonst the worse of the industry: DGII underperforms 83.33% of its industry peers.
  • A Quick Ratio of 0.90 indicates that DGII may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.90, DGII is doing worse than 81.25% of the companies in the same industry.
  • 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

6

3. DGII Growth Analysis

3.1 Past

  • DGII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.46%.
  • The Earnings Per Share has been growing by 48.58% on average over the past years. This is a very strong growth
  • DGII shows a small growth in Revenue. In the last year, the Revenue has grown by 6.40%.
  • 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)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

  • 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 Y12.23%
EPS Next 2Y13.41%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue Next Year17.56%
Revenue Next 2Y12.27%
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.
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

4

4. DGII Valuation Analysis

4.1 Price/Earnings Ratio

  • DGII is valuated rather expensively with a Price/Earnings ratio of 23.38.
  • Compared to the rest of the industry, the Price/Earnings ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 70.83% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.15. DGII is around the same levels.
  • With a Price/Forward Earnings ratio of 18.70, DGII is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, DGII is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.27, DGII is valued a bit cheaper.
Industry RankSector Rank
PE 23.38
Fwd PE 18.7
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

  • DGII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGII is cheaper than 64.58% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 75.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.06
EV/EBITDA 20.92
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 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)1.91
PEG (5Y)0.48
EPS Next 2Y13.41%
EPS Next 3Y11.19%

0

5. DGII Dividend Analysis

5.1 Amount

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

DGII Fundamentals: All Metrics, Ratios and Statistics

DIGI INTERNATIONAL INC

NASDAQ:DGII (3/11/2026, 8:00:02 PM)

After market: 50.5 0 (0%)

50.5

+0.19 (+0.38%)

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 Change5.31%
Market Cap1.90B
Revenue(TTM)448.82M
Net Income(TTM)42.43M
Analysts81.67
Price Target51.51 (2%)
Short Float %4.2%
Short Ratio4.78
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)0.17%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)-3.05%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)6.76%
Revenue NQ rev (3m)8.76%
Revenue NY rev (1m)5.24%
Revenue NY rev (3m)7.42%
Valuation
Industry RankSector Rank
PE 23.38
Fwd PE 18.7
P/S 4.23
P/FCF 17.06
P/OCF 16.68
P/B 2.93
P/tB N/A
EV/EBITDA 20.92
EPS(TTM)2.16
EY4.28%
EPS(NY)2.7
Fwd EY5.35%
FCF(TTM)2.96
FCFY5.86%
OCF(TTM)3.03
OCFY6%
SpS11.93
BVpS17.26
TBVpS-2.3
PEG (NY)1.91
PEG (5Y)0.48
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 5.41
F-Score5
WACC9.64%
ROIC/WACC0.69
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 3Y8.07%
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 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 4 / 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.