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. DGII scores excellent on profitability, but there are some minor concerns on its financial health. 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.
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
Looking at the Return On Assets, with a value of 4.42%, DGII is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
With a decent Return On Equity value of 6.41%, DGII is doing good in the industry, outperforming 72.92% of the companies in the same industry.
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 3 year average ROIC (6.07%) for DGII is below the current ROIC(6.22%), indicating increased profibility in the last year.
| 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
The Profit Margin of DGII (9.48%) is better than 79.17% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
With an excellent Operating Margin value of 13.08%, DGII belongs to the best 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.
Looking at the Gross Margin, with a value of 62.92%, DGII belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DGII is destroying value.
Compared to 1 year ago, DGII has more shares outstanding
Compared to 5 years ago, DGII has more shares outstanding
DGII has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.58 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a Altman-Z score of 4.58. This is in the better half of the industry: DGII outperforms 79.17% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.51, DGII is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that DGII is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, DGII is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for DGII, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.64
WACC9.69%
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.
Looking at the Current ratio, with a value of 1.21, DGII is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that DGII may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, DGII is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
DGII does not score too well on the current and quick ratio evaluation. However, as it has 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.
DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.58% yearly.
DGII shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.02% yearly.
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
Based on estimates for the next years, DGII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.19% on average per year.
Based on estimates for the next years, DGII will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.61 indicates a rather expensive valuation of DGII.
68.75% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. DGII is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.51, 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 (23.13), we can say DGII is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
DGII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGII is cheaper than 62.50% of the companies in the same industry.
DGII's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DGII is cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 19.67 |
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)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 | 19.67 |
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 | 4.58 |
F-Score5
WACC9.69%
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 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.
How financially healthy is DIGI INTERNATIONAL INC?
The financial health rating of DIGI INTERNATIONAL INC (DGII) is 5 / 10.