DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
USA - NASDAQ:DGII - US2537981027 - Common Stock
38.38 USD
-0.15 (-0.39%)
38.38 USD
0 (0%)
DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making DGII a very profitable company, without any liquidiy or solvency issues. DGII has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years DGII 4 years were profitable.
DGII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DGII's Return On Assets of 5.54% is fine compared to the rest of the industry. DGII outperforms 77.08% of its industry peers.
DGII has a better Return On Equity (6.87%) than 68.75% of its industry peers.
DGII has a Return On Invested Capital of 6.60%. This is in the better half of the industry: DGII outperforms 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 13.05%.
The last Return On Invested Capital (6.60%) for DGII is above the 3 year average (4.84%), which is a sign of increasing profitability.
| 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
DGII's Profit Margin of 10.14% is amongst the best of the industry. DGII outperforms 81.25% of its industry peers.
DGII's Profit Margin has improved in the last couple of years.
The Operating Margin of DGII (13.52%) is better than 83.33% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
DGII has a Gross Margin of 62.20%. This is amongst the best in the industry. DGII outperforms 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.
DGII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.12 indicates that DGII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.12, DGII belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 has a Debt to FCF ratio of 0.39. This is amongst the best in the industry. DGII outperforms 81.25% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGII is not too dependend on debt financing.
DGII's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. DGII outperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 7.12 |
ROIC/WACC0.7
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DGII should not have too much problems paying its short term obligations.
DGII's Current ratio of 1.43 is on the low side compared to the rest of the industry. DGII is outperformed by 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.
DGII has a worse Quick ratio (1.03) than 70.83% 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 | 1.43 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.53% over the past year.
The Earnings Per Share has been growing by 48.58% on average over the past years. This is a very strong growth
EPS 1Y (TTM)5.53%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%7.69%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 8.98% on average per year.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y6.7%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.51%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.28 indicates a rather expensive valuation of DGII.
DGII's Price/Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 72.92% of the companies in the same industry.
DGII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
Based on the Price/Forward Earnings ratio of 17.13, the valuation of DGII can be described as rather expensive.
68.75% of the companies in the same industry are more expensive than DGII, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DGII to the average of the S&P500 Index (34.57), we can say DGII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 17.13 |
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.
Based on the Price/Free Cash Flow ratio, DGII is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 15.97 |
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)2.73
PEG (5Y)0.38
EPS Next 2Y8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.38
-0.15 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.2%
Inst Owner Change0.85%
Ins Owners2.22%
Ins Owner Change1.6%
Market Cap1.42B
Revenue(TTM)N/A
Net Income(TTM)42.69M
Analysts80
Price Target41.82 (8.96%)
Short Float %4.33%
Short Ratio8.32
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)0%
PT rev (3m)10.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 17.13 | ||
| P/S | 3.38 | ||
| P/FCF | 13.79 | ||
| P/OCF | 13.39 | ||
| P/B | 2.29 | ||
| P/tB | 34.34 | ||
| EV/EBITDA | 15.97 |
EPS(TTM)2.1
EY5.47%
EPS(NY)2.24
Fwd EY5.84%
FCF(TTM)2.78
FCFY7.25%
OCF(TTM)2.87
OCFY7.47%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)2.73
PEG (5Y)0.38
Graham Number28.13
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%
ROICexgc growth 3Y38.18%
ROICexgc 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 | 7.12 |
F-Score7
WACC9.36%
ROIC/WACC0.7
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)5.53%
EPS 3Y7.94%
EPS 5Y48.58%
EPS Q2Q%7.69%
EPS Next Y6.7%
EPS Next 2Y8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.84%
Revenue Next Year7.51%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.92%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year37.61%
EBIT Next 3Y18.84%
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%
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.
What is the valuation status for DGII stock?
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.
Can you provide the expected EPS growth for DGII stock?
The Earnings per Share (EPS) of DIGI INTERNATIONAL INC (DGII) is expected to grow by 6.7% in the next year.