43.91 USD
+0.71 (+1.64%)
We assign a fundamental rating of 6 out of 10 to DGII. DGII was compared to 48 industry peers in the Communications Equipment industry. DGII has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
- 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.
1.2 Ratios
- With a decent Return On Assets value of 4.42%, DGII is doing good in the industry, outperforming 77.08% of the companies in the same industry.
- DGII's Return On Equity of 6.41% is fine compared to the rest of the industry. DGII outperforms 72.92% of its industry peers.
- DGII has a better Return On Invested Capital (6.22%) than 70.83% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DGII is significantly below the industry average of 12.15%.
- The 3 year average ROIC (6.07%) for DGII is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 9.48%, DGII is doing good in the industry, outperforming 79.17% of the companies in the same industry.
- In the last couple of years the Profit Margin of DGII has grown nicely.
- The Operating Margin of DGII (13.08%) is better than 83.33% of its industry peers.
- In the last couple of years the Operating Margin of DGII has grown nicely.
- DGII has a better Gross Margin (62.92%) than 81.25% of its industry peers.
- In the last couple of years the Gross Margin of DGII has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGII is destroying value.
- DGII has more shares outstanding than it did 1 year ago.
- DGII has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DGII is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.50 indicates that DGII is not in any danger for bankruptcy at the moment.
- DGII's Altman-Z score of 4.50 is fine compared to the rest of the industry. DGII outperforms 77.08% of its industry peers.
- DGII has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
- DGII has a better Debt to FCF ratio (1.51) than 70.83% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that DGII is not too dependend on debt financing.
- DGII has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.64
WACC9.66%
2.3 Liquidity
- A Current Ratio of 1.21 indicates that DGII should not have too much problems paying its short term obligations.
- DGII has a worse Current ratio (1.21) than 83.33% of its industry peers.
- DGII has a Quick Ratio of 1.21. This is a bad value and indicates that DGII is not financially healthy enough and could expect problems in meeting its short term obligations.
- DGII has a Quick ratio of 0.85. This is amonst the worse of the industry: DGII underperforms 85.42% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.85 |
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%.
- 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.
- Looking at the last year, DGII shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
- The Revenue has been growing by 9.02% on average over the past years. This is quite good.
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
- 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.
- The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y11.39%
EPS Next 2Y12.43%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue Next Year9.43%
Revenue Next 2Y8.72%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.91, DGII is valued on the expensive side.
- 70.83% 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 27.54, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 18.77 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 72.92% of the companies are valued more expensively.
- DGII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than 66.67% of the companies 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 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.52 | ||
| EV/EBITDA | 19.28 |
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)1.84
PEG (5Y)0.43
EPS Next 2Y12.43%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
- No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:DGII (1/16/2026, 3:32:56 PM)
43.91
+0.71 (+1.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-12 2025-11-12/amc
Earnings (Next)02-04 2026-02-04
Inst Owners101.48%
Inst Owner Change-0.06%
Ins Owners2.61%
Ins Owner Change0.27%
Market Cap1.63B
Revenue(TTM)430.22M
Net Income(TTM)40.80M
Analysts81.67
Price Target47.43 (8.02%)
Short Float %4.12%
Short Ratio5.92
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)13.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)0%
EPS NY rev (3m)4.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.77 | ||
| P/S | 3.8 | ||
| P/FCF | 15.52 | ||
| P/OCF | 15.14 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.28 |
EPS(TTM)2.1
EY4.78%
EPS(NY)2.34
Fwd EY5.33%
FCF(TTM)2.83
FCFY6.44%
OCF(TTM)2.9
OCFY6.6%
SpS11.56
BVpS17.09
TBVpS-2.89
PEG (NY)1.84
PEG (5Y)0.43
Graham Number28.41
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.5 |
F-Score5
WACC9.66%
ROIC/WACC0.64
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)5.53%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%7.69%
EPS Next Y11.39%
EPS Next 2Y12.43%
EPS Next 3Y11.19%
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y3.49%
Revenue growth 5Y9.02%
Sales Q2Q%8.84%
Revenue Next Year9.43%
Revenue Next 2Y8.72%
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.