DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
USA - NASDAQ:DGII - US2537981027 - Common Stock
35.79 USD
-0.48 (-1.32%)
DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. DGII scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past 5 years DGII always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DGII (5.54%) is better than 77.08% of its industry peers.
With a decent Return On Equity value of 6.87%, DGII is doing good in the industry, outperforming 70.83% of the companies in the same industry.
DGII's Return On Invested Capital of 6.60% is fine compared to the rest of the industry. DGII outperforms 72.92% 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 13.02%.
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 has a Profit Margin of 10.14%. This is amongst the best in the industry. DGII outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII's Operating Margin of 13.52% is amongst the best of the industry. DGII outperforms 81.25% of its industry peers.
In the last couple of years the Operating Margin of DGII has grown nicely.
With an excellent Gross Margin value of 62.20%, DGII belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
Compared to 5 years ago, DGII has more shares outstanding
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.78 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII's Altman-Z score of 6.78 is amongst the best of 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.
The Debt to FCF ratio of DGII (0.39) is better than 81.25% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that DGII is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, DGII is in the better half of 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 | 6.78 |
ROIC/WACC0.71
WACC9.28%
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 worse Current ratio (1.43) than 75.00% 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 72.92% 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
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.
Looking at the last year, DGII shows a decrease in Revenue. The Revenue has decreased by -2.37% in the last year.
Measured over the past years, DGII shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
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
Based on estimates for the next years, DGII will show a small growth in Earnings Per Share. The EPS will grow by 7.81% on average per year.
Based on estimates for the next years, DGII will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
EPS Next Y5.01%
EPS Next 2Y6.11%
EPS Next 3Y7.81%
EPS Next 5YN/A
Revenue Next Year0.68%
Revenue Next 2Y4.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.37, which indicates a rather expensive current valuation of DGII.
72.92% 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 26.13.
A Price/Forward Earnings ratio of 15.97 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 77.08% of the companies in the same industry.
DGII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 15.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than 70.83% of the companies in the same industry.
85.42% 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 | 12.86 | ||
| EV/EBITDA | 15.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.47
PEG (5Y)0.33
EPS Next 2Y6.11%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DGII (11/6/2025, 1:46:47 PM)
35.79
-0.48 (-1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.2%
Inst Owner Change-0.39%
Ins Owners2.22%
Ins Owner Change-0.03%
Market Cap1.33B
Revenue(TTM)420.94M
Net Income(TTM)42.69M
Analysts80
Price Target41.82 (16.85%)
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)1.23%
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 | 17.37 | ||
| Fwd PE | 15.97 | ||
| P/S | 3.16 | ||
| P/FCF | 12.86 | ||
| P/OCF | 12.49 | ||
| P/B | 2.14 | ||
| P/tB | 32.02 | ||
| EV/EBITDA | 15.05 |
EPS(TTM)2.06
EY5.76%
EPS(NY)2.24
Fwd EY6.26%
FCF(TTM)2.78
FCFY7.78%
OCF(TTM)2.87
OCFY8.01%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)3.47
PEG (5Y)0.33
Graham Number27.86
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 | 6.78 |
F-Score7
WACC9.28%
ROIC/WACC0.71
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 Y5.01%
EPS Next 2Y6.11%
EPS Next 3Y7.81%
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 2Y4.04%
Revenue Next 3Y3.93%
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 5.01% in the next year.