DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:DGII • US2537981027

44.72 USD
-1.83 (-3.93%)
At close: Feb 5, 2026
44.37 USD
-0.35 (-0.78%)
After Hours: 2/5/2026, 5:22:26 PM
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 has a great profitability rating, 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. 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 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 4.42% is fine compared to the rest of the industry. DGII outperforms 77.08% of its industry peers.
  • DGII has a Return On Equity of 6.41%. This is in the better half of the industry: DGII outperforms 72.92% of its industry peers.
  • DGII's Return On Invested Capital of 6.22% is fine compared to the rest of the industry. DGII outperforms 70.83% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DGII is significantly below the industry average of 11.74%.
  • The 3 year average ROIC (6.07%) for DGII is below the current ROIC(6.22%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.42%
ROE 6.41%
ROIC 6.22%
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 has a better Profit Margin (9.48%) than 79.17% of its industry peers.
  • DGII's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 13.08%, DGII belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DGII has grown nicely.
  • The Gross Margin of DGII (62.92%) is better than 81.25% of its industry peers.
  • DGII's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.08%
PM (TTM) 9.48%
GM 62.92%
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. 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
  • Compared to 5 years ago, DGII has more shares outstanding
  • The debt/assets ratio for DGII is higher compared to a year ago.
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 4.76. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
  • DGII has a Altman-Z score of 4.76. This is in the better half of the industry: DGII outperforms 75.00% of its industry peers.
  • The Debt to FCF ratio of DGII is 1.51, which is an excellent value as it means it would take DGII, only 1.51 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of DGII (1.51) is better than 68.75% of its industry peers.
  • A Debt/Equity ratio of 0.25 indicates that DGII is not too dependend on debt financing.
  • The Debt to Equity ratio of DGII (0.25) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.51
Altman-Z 4.76
ROIC/WACC0.63
WACC9.83%
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

  • A Current Ratio of 1.21 indicates that DGII should not have too much problems paying its short term obligations.
  • DGII's Current ratio of 1.21 is on the low side compared to the rest of the industry. DGII is outperformed by 85.42% of its industry peers.
  • A Quick Ratio of 0.85 indicates that DGII may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.85, DGII is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
  • 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 1.21
Quick Ratio 0.85
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. Growth

3.1 Past

  • DGII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.46%.
  • Measured over the past years, DGII shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.58% on average per year.
  • The Revenue has been growing slightly by 1.46% 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)1.46%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%17.9%

3.2 Future

  • DGII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.19% yearly.
  • The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y15.76%
EPS Next 2Y12.21%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue Next Year11.7%
Revenue Next 2Y8.54%
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

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5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.70, the valuation of DGII can be described as rather expensive.
  • Based on the Price/Earnings ratio, DGII is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.67. DGII is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 16.91, the valuation of DGII can be described as correct.
  • DGII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 75.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. DGII is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.7
Fwd PE 16.91
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

  • Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than 64.58% of the companies in the same industry.
  • 77.08% of the companies in the same industry are more expensive than DGII, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.81
EV/EBITDA 20.66
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)0.43
EPS Next 2Y12.21%
EPS Next 3Y11.19%

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

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

DIGI INTERNATIONAL INC

NASDAQ:DGII (2/5/2026, 5:22:26 PM)

After market: 44.37 -0.35 (-0.78%)

44.72

-1.83 (-3.93%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-04
Earnings (Next)05-05
Inst Owners101.48%
Inst Owner Change-0.15%
Ins Owners2.61%
Ins Owner Change0.27%
Market Cap1.66B
Revenue(TTM)430.22M
Net Income(TTM)40.80M
Analysts81.67
Price Target49.13 (9.86%)
Short Float %3.64%
Short Ratio4.49
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)5.76%
Min EPS beat(2)3.44%
Max EPS beat(2)8.07%
EPS beat(4)3
Avg EPS beat(4)3.46%
Min EPS beat(4)-1.13%
Max EPS beat(4)8.07%
EPS beat(8)6
Avg EPS beat(8)3.24%
EPS beat(12)10
Avg EPS beat(12)4.93%
EPS beat(16)14
Avg EPS beat(16)8.3%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)1.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)1.68%
Revenue beat(8)1
Avg Revenue beat(8)-1.13%
Revenue beat(12)4
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)0.59%
PT rev (1m)3.58%
PT rev (3m)17.48%
EPS NQ rev (1m)2.81%
EPS NQ rev (3m)5.45%
EPS NY rev (1m)3.92%
EPS NY rev (3m)8.49%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)2.07%
Revenue NY rev (3m)3.9%
Valuation
Industry RankSector Rank
PE 20.7
Fwd PE 16.91
P/S 3.87
P/FCF 15.81
P/OCF 15.42
P/B 2.62
P/tB N/A
EV/EBITDA 20.66
EPS(TTM)2.16
EY4.83%
EPS(NY)2.64
Fwd EY5.91%
FCF(TTM)2.83
FCFY6.33%
OCF(TTM)2.9
OCFY6.48%
SpS11.56
BVpS17.09
TBVpS-2.89
PEG (NY)1.31
PEG (5Y)0.43
Graham Number28.82
Profitability
Industry RankSector Rank
ROA 4.42%
ROE 6.41%
ROCE 6.91%
ROIC 6.22%
ROICexc 6.4%
ROICexgc 102.72%
OM 13.08%
PM (TTM) 9.48%
GM 62.92%
FCFM 24.48%
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 Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.51
Debt/EBITDA 1.76
Cap/Depr 7.68%
Cap/Sales 0.61%
Interest Coverage 8.79
Cash Conversion 119.25%
Profit Quality 258.13%
Current Ratio 1.21
Quick Ratio 0.85
Altman-Z 4.76
F-Score5
WACC9.83%
ROIC/WACC0.63
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 Y15.76%
EPS Next 2Y12.21%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%17.9%
Revenue Next Year11.7%
Revenue Next 2Y8.54%
Revenue Next 3Y8.07%
Revenue Next 5YN/A
EBIT growth 1Y17.05%
EBIT growth 3Y13.5%
EBIT growth 5Y37.63%
EBIT Next Year49.19%
EBIT Next 3Y20.6%
EBIT Next 5YN/A
FCF growth 1Y30.25%
FCF growth 3Y43.33%
FCF growth 5Y25.69%
OCF growth 1Y29.93%
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 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.


How financially healthy is DIGI INTERNATIONAL INC?

The financial health rating of DIGI INTERNATIONAL INC (DGII) is 5 / 10.