DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
USA - NASDAQ:DGII - US2537981027 - Common Stock
35.7 USD
-0.02 (-0.06%)
35.7 USD
0 (0%)
Taking everything into account, DGII scores 6 out of 10 in our fundamental rating. DGII was compared to 48 industry peers in the Communications Equipment industry. DGII gets an excellent profitability rating and is at the same time showing great financial health properties. DGII has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DGII was profitable.
DGII had a positive operating cash flow in the past year.
DGII had positive earnings in each of the past 5 years.
In the past 5 years DGII always reported a positive cash flow from operatings.
1.2 Ratios
DGII's Return On Assets of 5.54% is fine compared to the rest of the industry. DGII outperforms 75.00% of its industry peers.
DGII has a Return On Equity of 6.87%. This is in the better half of the industry: DGII outperforms 70.83% of its industry peers.
The Return On Invested Capital of DGII (6.60%) is better than 72.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DGII is significantly below the industry average of 13.71%.
The 3 year average ROIC (4.84%) for DGII is below the current ROIC(6.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.87% | ||
| ROIC | 6.6% |
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
Looking at the Profit Margin, with a value of 10.14%, DGII belongs to the top of the industry, outperforming 83.33% 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 (13.52%) 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 (62.20%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of DGII has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.52% | ||
| PM (TTM) | 10.14% | ||
| GM | 62.2% |
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.
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.
DGII has a better debt/assets ratio than last year.
2.2 Solvency
DGII has an Altman-Z score of 6.70. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
DGII has a Altman-Z score of 6.70. This is amongst the best in the industry. DGII outperforms 85.42% of its industry peers.
DGII has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
DGII's Debt to FCF ratio of 0.39 is fine compared to the rest of the industry. DGII outperforms 79.17% of its industry peers.
DGII has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.06, DGII is doing good in the industry, outperforming 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 6.7 |
ROIC/WACC0.65
WACC10.1%
2.3 Liquidity
DGII has a Current Ratio of 1.43. 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 of 1.43. This is in the lower half of the industry: DGII underperforms 72.92% of its industry peers.
A Quick Ratio of 1.03 indicates that DGII should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.03, DGII is not doing good in the industry: 72.92% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
DGII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.52%.
Measured over the past years, DGII shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.66% on average per year.
DGII shows a decrease in Revenue. In the last year, the revenue decreased by -2.37%.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)3.52%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%6%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%2.2%
3.2 Future
The Earnings Per Share is expected to grow by 7.07% on average over the next years.
The Revenue is expected to grow by 3.93% on average over the next years.
EPS Next Y4.91%
EPS Next 2Y5.58%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year0.68%
Revenue Next 2Y4.16%
Revenue Next 3Y3.93%
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
DGII is valuated rather expensively with a Price/Earnings ratio of 17.33.
77.08% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.27, DGII is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.09, which indicates a correct valuation of DGII.
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.
DGII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a rather cheap valuation: DGII is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.83 | ||
| EV/EBITDA | 14.82 |
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)3.53
PEG (5Y)0.33
EPS Next 2Y5.58%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.7
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.07%
Inst Owner Change-0.6%
Ins Owners2.23%
Ins Owner Change-0.03%
Market Cap1.33B
Analysts80
Price Target41.31 (15.71%)
Short Float %4.35%
Short Ratio8.4
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)2
Avg EPS beat(2)3.44%
Min EPS beat(2)3.44%
Max EPS beat(2)3.45%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-1.13%
Max EPS beat(4)3.45%
EPS beat(8)6
Avg EPS beat(8)3.09%
EPS beat(12)10
Avg EPS beat(12)4.89%
EPS beat(16)14
Avg EPS beat(16)11.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)-0.77%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.52%
PT rev (1m)8.97%
PT rev (3m)8.97%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0.89%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 16.09 | ||
| P/S | 3.15 | ||
| P/FCF | 12.83 | ||
| P/OCF | 12.46 | ||
| P/B | 2.13 | ||
| P/tB | 31.94 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)2.06
EY5.77%
EPS(NY)2.22
Fwd EY6.21%
FCF(TTM)2.78
FCFY7.8%
OCF(TTM)2.87
OCFY8.03%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)3.53
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.87% | ||
| ROCE | 8.35% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 55.15% | ||
| OM | 13.52% | ||
| PM (TTM) | 10.14% | ||
| GM | 62.2% | ||
| FCFM | 24.54% |
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-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 9.13% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 7.35 | ||
| Cash Conversion | 117.19% | ||
| Profit Quality | 242% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 6.7 |
F-Score7
WACC10.1%
ROIC/WACC0.65
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)3.52%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%6%
EPS Next Y4.91%
EPS Next 2Y5.58%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%2.2%
Revenue Next Year0.68%
Revenue Next 2Y4.16%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y21.92%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year34.38%
EBIT Next 3Y13.19%
EBIT Next 5YN/A
FCF growth 1Y215.62%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y210%
OCF growth 3Y12.91%
OCF growth 5Y23.47%