DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII - Nasdaq - US2537981027 - Common Stock - Currency: USD
Overall DGII gets a fundamental rating of 6 out of 10. We evaluated DGII against 51 industry peers in the Communications Equipment industry. DGII has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DGII is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years DGII has been profitable.
Each year in the past 5 years DGII had a positive operating cash flow.
1.2 Ratios
DGII's Return On Assets of 4.48% is fine compared to the rest of the industry. DGII outperforms 78.00% of its industry peers.
Looking at the Return On Equity, with a value of 6.03%, DGII is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.52%, DGII is doing good in the industry, outperforming 76.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DGII is significantly below the industry average of 11.66%.
The last Return On Invested Capital (5.52%) for DGII is above the 3 year average (4.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 6.03% | ||
| ROIC | 5.52% |
ROA(3y)2.67%
ROA(5y)2.25%
ROE(3y)4.11%
ROE(5y)3.36%
ROIC(3y)4.84%
ROIC(5y)3.62%
1.3 Margins
DGII's Profit Margin of 8.45% is amongst the best of the industry. DGII outperforms 88.00% of its industry peers.
DGII's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.69%, DGII belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
DGII's Operating Margin has improved in the last couple of years.
DGII has a better Gross Margin (60.03%) than 84.00% of its industry peers.
DGII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.69% | ||
| PM (TTM) | 8.45% | ||
| GM | 60.03% |
OM growth 3Y44.91%
OM growth 5Y23.58%
PM growth 3Y16.34%
PM growth 5Y6.17%
GM growth 3Y2.95%
GM growth 5Y4.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DGII is destroying value.
The number of shares outstanding for DGII has been increased compared to 1 year ago.
The number of shares outstanding for DGII has been increased compared to 5 years ago.
Compared to 1 year ago, DGII has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.90 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a better Altman-Z score (4.90) than 82.00% of its industry peers.
The Debt to FCF ratio of DGII is 1.04, which is an excellent value as it means it would take DGII, only 1.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.04, DGII is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that DGII is not too dependend on debt financing.
DGII has a Debt to Equity ratio (0.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.04 | ||
| Altman-Z | 4.9 |
ROIC/WACC0.58
WACC9.53%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DGII should not have too much problems paying its short term obligations.
The Current ratio of DGII (1.61) is comparable to the rest of the industry.
A Quick Ratio of 1.06 indicates that DGII should not have too much problems paying its short term obligations.
DGII has a worse Quick ratio (1.06) than 64.00% 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 | 1.61 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.50% over the past year.
DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.66% yearly.
Looking at the last year, DGII shows a decrease in Revenue. The Revenue has decreased by -4.47% in the last year.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%4.17%
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-2.1%
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 5.02% on average per year.
Based on estimates for the next years, DGII will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y2.41%
EPS Next 2Y2.64%
EPS Next 3Y5.02%
EPS Next 5YN/A
Revenue Next Year0.09%
Revenue Next 2Y-0.19%
Revenue Next 3Y3.27%
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.
The Revenue 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
The Price/Earnings ratio is 16.75, which indicates a correct valuation of DGII.
82.00% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
DGII is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
DGII is valuated correctly with a Price/Forward Earnings ratio of 16.05.
72.00% of the companies in the same industry are more expensive than DGII, based on the Price/Forward Earnings ratio.
DGII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 16.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 72.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a rather cheap valuation: DGII is cheaper than 84.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 15.78 |
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.
The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)6.95
PEG (5Y)0.32
EPS Next 2Y2.64%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.66
-1.38 (-3.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.78%
Inst Owner Change-95.92%
Ins Owners1.67%
Ins Owner Change1.96%
Market Cap1.24B
Analysts80
Price Target37.43 (11.2%)
Short Float %5.5%
Short Ratio8.49
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)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-1.13%
Max EPS beat(2)2.74%
EPS beat(4)2
Avg EPS beat(4)0.97%
Min EPS beat(4)-1.13%
Max EPS beat(4)3.09%
EPS beat(8)6
Avg EPS beat(8)4.07%
EPS beat(12)10
Avg EPS beat(12)8.08%
EPS beat(16)14
Avg EPS beat(16)12.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)-1.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.75%
Revenue beat(12)6
Avg Revenue beat(12)0.88%
Revenue beat(16)9
Avg Revenue beat(16)0.84%
PT rev (1m)-1.08%
PT rev (3m)-1.08%
EPS NQ rev (1m)-5.65%
EPS NQ rev (3m)-14.37%
EPS NY rev (1m)-2.54%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-11.21%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 16.05 | ||
| P/S | 2.94 | ||
| P/FCF | 13.56 | ||
| P/OCF | 13.19 | ||
| P/B | 2.1 | ||
| P/tB | 556.97 | ||
| EV/EBITDA | 15.78 |
EPS(TTM)2.01
EY5.97%
EPS(NY)2.1
Fwd EY6.23%
FCF(TTM)2.48
FCFY7.38%
OCF(TTM)2.55
OCFY7.58%
SpS11.43
BVpS16.01
TBVpS0.06
PEG (NY)6.95
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 6.03% | ||
| ROCE | 6.99% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 42.63% | ||
| OM | 11.69% | ||
| PM (TTM) | 8.45% | ||
| GM | 60.03% | ||
| FCFM | 21.72% |
ROA(3y)2.67%
ROA(5y)2.25%
ROE(3y)4.11%
ROE(5y)3.36%
ROIC(3y)4.84%
ROIC(5y)3.62%
ROICexc(3y)5.05%
ROICexc(5y)3.91%
ROICexgc(3y)38.34%
ROICexgc(5y)28.01%
ROCE(3y)6.13%
ROCE(5y)4.58%
ROICexcg growth 3Y38.18%
ROICexcg growth 5Y29.38%
ROICexc growth 3Y34.71%
ROICexc growth 5Y12.48%
OM growth 3Y44.91%
OM growth 5Y23.58%
PM growth 3Y16.34%
PM growth 5Y6.17%
GM growth 3Y2.95%
GM growth 5Y4.71%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.04 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 7.43% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 3.85 | ||
| Cash Conversion | 113.29% | ||
| Profit Quality | 257.08% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.9 |
F-Score6
WACC9.53%
ROIC/WACC0.58
Cap/Depr(3y)8.22%
Cap/Depr(5y)8.03%
Cap/Sales(3y)0.67%
Cap/Sales(5y)0.61%
Profit Quality(3y)224.85%
Profit Quality(5y)321.51%
High Growth Momentum
Growth
EPS 1Y (TTM)0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%4.17%
EPS Next Y2.41%
EPS Next 2Y2.64%
EPS Next 3Y5.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-2.1%
Revenue Next Year0.09%
Revenue Next 2Y-0.19%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
EBIT growth 1Y-1.99%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year29.24%
EBIT Next 3Y14.25%
EBIT Next 5YN/A
FCF growth 1Y91.57%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y87.12%
OCF growth 3Y12.91%
OCF growth 5Y23.47%