42.36 USD
+0.52 (+1.24%)
42.36 USD
0 (0%)
DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DGII was profitable.
In the past year DGII had a positive cash flow from operations.
Each year in the past 5 years DGII has been profitable.
DGII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.54%, DGII is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
DGII's Return On Equity of 6.87% is fine compared to the rest of the industry. DGII outperforms 68.75% of its industry peers.
DGII has a Return On Invested Capital of 7.52%. This is in the better half of the industry: DGII outperforms 72.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DGII is significantly below the industry average of 12.82%.
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
The Profit Margin of DGII (10.14%) is better than 79.17% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII has a Operating Margin of 13.52%. This is amongst the best in the industry. DGII outperforms 83.33% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
DGII has a better Gross Margin (62.20%) than 83.33% 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
The number of shares outstanding for DGII has been increased compared to 5 years ago.
DGII has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.69 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII's Altman-Z score of 7.69 is amongst the best of the industry. DGII outperforms 87.50% of its industry peers.
DGII has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
DGII has a better Debt to FCF ratio (0.39) than 79.17% of its industry peers.
DGII has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, DGII is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 7.69 |
ROIC/WACC0.78
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DGII should not have too much problems paying its short term obligations.
The Current ratio of DGII (1.43) is worse than 75.00% of its industry peers.
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.
DGII has a Quick ratio of 1.03. This is in the lower half of the industry: DGII underperforms 72.92% 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 | 1.43 | ||
| 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%.
The Earnings Per Share has been growing by 48.58% on average over the past years. This is a very strong growth
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
The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y6.7%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.51%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 20.17, which indicates a rather expensive current valuation of DGII.
Based on the Price/Earnings ratio, DGII is valued a bit cheaper than 66.67% of the companies in the same industry.
DGII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 18.90 indicates a rather expensive valuation of DGII.
Based on the Price/Forward Earnings ratio, DGII is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, DGII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a rather cheap valuation: DGII is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.22 | ||
| EV/EBITDA | 17.54 |
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.
DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)0.42
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.36
+0.52 (+1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.2%
Inst Owner Change0.23%
Ins Owners2.22%
Ins Owner Change1.59%
Market Cap1.57B
Revenue(TTM)430.22M
Net Income(TTM)42.69M
Analysts80
Price Target47.43 (11.97%)
Short Float %4.24%
Short Ratio8.27
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)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)0.99%
EPS NY rev (1m)0%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 18.9 | ||
| P/S | 3.74 | ||
| P/FCF | 15.22 | ||
| P/OCF | 14.78 | ||
| P/B | 2.53 | ||
| P/tB | 37.9 | ||
| EV/EBITDA | 17.54 |
EPS(TTM)2.1
EY4.96%
EPS(NY)2.24
Fwd EY5.29%
FCF(TTM)2.78
FCFY6.57%
OCF(TTM)2.87
OCFY6.77%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)3.01
PEG (5Y)0.42
Graham Number28.13
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 | 7.69 |
F-Score7
WACC9.64%
ROIC/WACC0.78
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 Y6.7%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%8.84%
Revenue Next Year7.51%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.92%
EBIT growth 3Y13.5%
EBIT growth 5Y37.63%
EBIT Next Year42.31%
EBIT Next 3YN/A
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 6.7% in the next year.