43.29 USD
-0.86 (-1.95%)
43.29 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. While DGII has a great profitability rating, 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.
In the past year DGII had a positive cash flow from operations.
In the past 5 years DGII has always been profitable.
DGII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DGII's Return On Assets of 4.42% is fine compared to the rest of the industry. DGII outperforms 77.08% of its industry peers.
The Return On Equity of DGII (6.41%) is better than 72.92% of its industry peers.
The Return On Invested Capital of DGII (6.22%) is better 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 last Return On Invested Capital (6.22%) for DGII is above the 3 year average (6.07%), which is a sign of increasing profitability.
| 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
DGII has a better Profit Margin (9.48%) than 79.17% of its industry peers.
DGII's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.08%, DGII belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
DGII's Operating Margin has improved in the last couple of years.
The Gross Margin of DGII (62.92%) is better than 81.25% of its industry peers.
DGII's Gross Margin has improved in the last couple of years.
| 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
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 a worse debt to assets ratio.
2.2 Solvency
DGII has an Altman-Z score of 4.51. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.51, DGII is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Debt to FCF ratio of DGII is 1.51, which is an excellent value as it means it would take DGII, only 1.51 years of fcf income to pay off all of its debts.
DGII has a Debt to FCF ratio of 1.51. This is in the better half of the industry: DGII outperforms 70.83% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that DGII is not too dependend on debt financing.
DGII's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. DGII outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.64
WACC9.73%
2.3 Liquidity
DGII has a Current Ratio of 1.21. This is a normal value and indicates that DGII is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DGII (1.21) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.85 indicates that DGII may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, DGII is doing worse than 85.42% 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 | 1.21 | ||
| Quick Ratio | 0.85 |
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
DGII shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
Measured over the past years, DGII shows a quite strong growth in Revenue. The Revenue has been growing by 9.02% on average per year.
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
DGII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.19% yearly.
DGII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.61, 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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 18.51, which indicates a rather expensive current valuation of DGII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 66.67% of the companies listed in the same industry.
DGII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 79.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 19.32 |
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)1.81
PEG (5Y)0.42
EPS Next 2Y12.43%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
43.29
-0.86 (-1.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.07%
Inst Owner Change0.23%
Ins Owners2.46%
Ins Owner Change0.27%
Market Cap1.61B
Revenue(TTM)430.22M
Net Income(TTM)40.80M
Analysts81.67
Price Target47.43 (9.56%)
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)14.81%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)4.39%
EPS NY rev (3m)4.39%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 18.51 | ||
| P/S | 3.75 | ||
| P/FCF | 15.3 | ||
| P/OCF | 14.93 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.32 |
EPS(TTM)2.1
EY4.85%
EPS(NY)2.34
Fwd EY5.4%
FCF(TTM)2.83
FCFY6.54%
OCF(TTM)2.9
OCFY6.7%
SpS11.56
BVpS17.09
TBVpS-2.89
PEG (NY)1.81
PEG (5Y)0.42
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 | 4.51 |
F-Score5
WACC9.73%
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 4 / 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.