DIGI INTERNATIONAL INC (DGII) Fundamental Analysis & Valuation

NASDAQ:DGII • US2537981027

Current stock price

49.854 USD
-0.11 (-0.21%)
Last:

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

8

1. DGII Profitability Analysis

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 each of the past 5 years.
  • DGII had a positive operating cash flow in each of the past 5 years.
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

  • DGII's Return On Assets of 4.62% is fine compared to the rest of the industry. DGII outperforms 76.60% of its industry peers.
  • The Return On Equity of DGII (6.54%) is better than 72.34% of its industry peers.
  • DGII's Return On Invested Capital of 6.63% is fine compared to the rest of the industry. DGII outperforms 74.47% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DGII is below the industry average of 10.21%.
  • 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 76.60% of its industry peers.
  • In the last couple of years the Profit Margin of DGII has grown nicely.
  • DGII has a better Operating Margin (13.20%) than 82.98% of its industry peers.
  • DGII's Operating Margin has improved in the last couple of years.
  • DGII has a better Gross Margin (62.98%) than 80.85% of its industry peers.
  • In the last couple of years the Gross Margin of DGII has grown nicely.
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

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5

2. DGII Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGII is destroying value.
  • The number of shares outstanding for DGII has been increased compared to 1 year ago.
  • 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

  • DGII has an Altman-Z score of 5.38. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
  • DGII's Altman-Z score of 5.38 is fine compared to the rest of the industry. DGII outperforms 74.47% of its industry peers.
  • DGII has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
  • DGII has a better Debt to FCF ratio (1.21) than 70.21% 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.
  • DGII has a worse Debt to Equity ratio (0.21) than 61.70% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for DGII, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 1.21
Altman-Z 5.38
ROIC/WACC0.77
WACC8.65%
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.
  • With a Current ratio value of 1.24, DGII is not doing good in the industry: 85.11% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.90 indicates that DGII may have some problems paying its short term obligations.
  • DGII has a Quick ratio of 0.90. This is amonst the worse of the industry: DGII underperforms 82.98% of its industry peers.
  • 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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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%.
  • DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.58% yearly.
  • The Revenue has been growing slightly by 6.40% in the past year.
  • DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.02% yearly.
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

  • The Earnings Per Share is expected to grow by 11.19% on average over the next years. This is quite good.
  • Based on estimates for the next years, DGII will show a quite strong growth in Revenue. The Revenue will grow by 9.71% 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 3Y9.71%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

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4

4. DGII Valuation Analysis

4.1 Price/Earnings Ratio

  • DGII is valuated rather expensively with a Price/Earnings ratio of 23.08.
  • DGII's Price/Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 70.21% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, DGII is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 18.46, the valuation of DGII can be described as rather expensive.
  • 70.21% 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 23.05. DGII is around the same levels.
Industry RankSector Rank
PE 23.08
Fwd PE 18.46
DGII Price Earnings VS Forward Price EarningsDGII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • DGII's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, DGII is valued a bit cheaper than the industry average as 76.60% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.84
EV/EBITDA 20.78
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.
  • DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)0.48
EPS Next 2Y13.41%
EPS Next 3Y11.19%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DGII Dividend Analysis

5.1 Amount

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

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DGII Fundamentals: All Metrics, Ratios and Statistics

DIGI INTERNATIONAL INC

NASDAQ:DGII (4/6/2026, 10:49:12 AM)

49.854

-0.11 (-0.21%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-04
Earnings (Next)05-05
Inst Owners100.96%
Inst Owner Change0%
Ins Owners2.64%
Ins Owner Change5.35%
Market Cap1.88B
Revenue(TTM)448.82M
Net Income(TTM)42.43M
Analysts81.67
Price Target51.51 (3.32%)
Short Float %4.91%
Short Ratio5.6
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)0%
PT rev (3m)8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.42%
Valuation
Industry RankSector Rank
PE 23.08
Fwd PE 18.46
P/S 4.18
P/FCF 16.84
P/OCF 16.47
P/B 2.89
P/tB N/A
EV/EBITDA 20.78
EPS(TTM)2.16
EY4.33%
EPS(NY)2.7
Fwd EY5.42%
FCF(TTM)2.96
FCFY5.94%
OCF(TTM)3.03
OCFY6.07%
SpS11.93
BVpS17.26
TBVpS-2.3
PEG (NY)1.89
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 5.38
F-Score5
WACC8.65%
ROIC/WACC0.77
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 3Y9.71%
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 Fundamental Analysis 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.


Can you provide the profitability details for DIGI INTERNATIONAL INC?

DIGI INTERNATIONAL INC (DGII) has a profitability rating of 8 / 10.


What are the PE and PB ratios of DIGI INTERNATIONAL INC (DGII) stock?

The Price/Earnings (PE) ratio for DIGI INTERNATIONAL INC (DGII) is 23.08 and the Price/Book (PB) ratio is 2.89.


What is the earnings growth outlook for DIGI INTERNATIONAL INC?

The Earnings per Share (EPS) of DIGI INTERNATIONAL INC (DGII) is expected to grow by 12.23% in the next year.