DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII - Nasdaq - US2537981027 - Common Stock
Taking everything into account, DGII scores 6 out of 10 in our fundamental rating. DGII was compared to 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DGII had positive earnings in the past year.
In the past year DGII had a positive cash flow from operations.
DGII had positive earnings in each of the past 5 years.
Each year in the past 5 years DGII had a positive operating cash flow.
1.2 Ratios
DGII has a better Return On Assets (2.76%) than 76.47% of its industry peers.
DGII has a Return On Equity of 3.87%. This is in the better half of the industry: DGII outperforms 74.51% of its industry peers.
DGII's Return On Invested Capital of 5.23% is fine compared to the rest of the industry. DGII outperforms 76.47% of its industry peers.
DGII had an Average Return On Invested Capital over the past 3 years of 4.84%. This is significantly below the industry average of 11.02%.
The 3 year average ROIC (4.84%) for DGII is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 3.87% | ||
| ROIC | 5.23% |
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 has a Profit Margin of 5.31%. This is amongst the best in the industry. DGII outperforms 82.35% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII has a Operating Margin of 11.34%. This is amongst the best in the industry. DGII outperforms 86.27% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
DGII has a better Gross Margin (58.93%) than 84.31% of its industry peers.
DGII's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 5.31% | ||
| GM | 58.93% |
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
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.
The number of shares outstanding for DGII has been increased compared to 5 years ago.
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.27 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a better Altman-Z score (4.27) than 82.35% of its industry peers.
The Debt to FCF ratio of DGII is 1.52, which is an excellent value as it means it would take DGII, only 1.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DGII (1.52) is better than 64.71% 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.
Looking at the Debt to Equity ratio, with a value of 0.21, DGII is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 4.27 |
ROIC/WACC0.53
WACC9.93%
2.3 Liquidity
DGII has a Current Ratio of 1.73. 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 Current ratio (1.73) which is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that DGII should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, DGII is doing worse than 68.63% of the companies in the same industry.
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 | 1.73 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for DGII have decreased by -0.50% in the last year.
DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.66% yearly.
The Revenue has decreased by -4.66% in the past year.
DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
EPS 1Y (TTM)-0.5%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-6.34%
3.2 Future
The Earnings Per Share is expected to decrease by -0.36% on average over the next years.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y5.08%
EPS Next 2Y-6.74%
EPS Next 3Y-0.36%
EPS Next 5YN/A
Revenue Next Year0.24%
Revenue Next 2Y2.65%
Revenue Next 3Y3.1%
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.
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
With a Price/Earnings ratio of 16.18, DGII is valued correctly.
DGII's Price/Earnings ratio is rather cheap when compared to the industry. DGII is cheaper than 84.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, DGII is valued a bit cheaper.
DGII is valuated correctly with a Price/Forward Earnings ratio of 15.39.
Based on the Price/Forward Earnings ratio, DGII is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. DGII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
82.35% of the companies in the same industry are more expensive than DGII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.68 | ||
| EV/EBITDA | 15.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)0.31
EPS Next 2Y-6.74%
EPS Next 3Y-0.36%
5. Dividend
5.1 Amount
DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DIGI INTERNATIONAL INC
NASDAQ:DGII (1/22/2025, 10:25:02 AM)
32.19
+0.13 (+0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.33%
Inst Owner Change-0.07%
Ins Owners2.32%
Ins Owner Change0.29%
Market Cap1.19B
Analysts80
Price Target37.84 (17.55%)
Short Float %5.63%
Short Ratio8.78
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)0.97%
Min EPS beat(2)-0.81%
Max EPS beat(2)2.74%
EPS beat(4)3
Avg EPS beat(4)3.03%
Min EPS beat(4)-0.81%
Max EPS beat(4)7.09%
EPS beat(8)7
Avg EPS beat(8)5.66%
EPS beat(12)11
Avg EPS beat(12)9.91%
EPS beat(16)14
Avg EPS beat(16)5.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-1.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)-1.04%
Revenue beat(8)3
Avg Revenue beat(8)0.01%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)1.11%
PT rev (1m)0%
PT rev (3m)9.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.8%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 15.39 | ||
| P/S | 2.8 | ||
| P/FCF | 14.68 | ||
| P/OCF | 14.28 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.64 |
EPS(TTM)1.99
EY6.18%
EPS(NY)2.09
Fwd EY6.5%
FCF(TTM)2.19
FCFY6.81%
OCF(TTM)2.25
OCFY7%
SpS11.5
BVpS15.76
TBVpS-0.4
PEG (NY)3.19
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 3.87% | ||
| ROCE | 6.63% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.44% | ||
| ROICexgc | 37.05% | ||
| OM | 11.34% | ||
| PM (TTM) | 5.31% | ||
| GM | 58.93% | ||
| FCFM | 19.07% |
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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 6.62% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 3.26 | ||
| Cash Conversion | 101.7% | ||
| Profit Quality | 359.33% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.27 |
F-Score5
WACC9.93%
ROIC/WACC0.53
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%0%
EPS Next Y5.08%
EPS Next 2Y-6.74%
EPS Next 3Y-0.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.66%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-6.34%
Revenue Next Year0.24%
Revenue Next 2Y2.65%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
EBIT growth 1Y-4.17%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year29.24%
EBIT Next 3Y14.25%
EBIT Next 5YN/A
FCF growth 1Y149.54%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y126.1%
OCF growth 3Y12.91%
OCF growth 5Y23.47%