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DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis

NASDAQ:DGII - Nasdaq - US2537981027 - Common Stock - Currency: USD

32.86  +0.21 (+0.64%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to DGII. DGII was compared to 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year DGII was profitable.
In the past year DGII had a positive cash flow from operations.
DGII had positive earnings in each of the past 5 years.
DGII had a positive operating cash flow in each of the past 5 years.
DGII Yearly Net Income VS EBIT VS OCF VS FCFDGII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M

1.2 Ratios

The Return On Assets of DGII (5.40%) is better than 77.08% of its industry peers.
DGII has a better Return On Equity (6.96%) than 77.08% of its industry peers.
The Return On Invested Capital of DGII (6.24%) is better than 75.00% of its industry peers.
DGII had an Average Return On Invested Capital over the past 3 years of 4.84%. This is significantly below the industry average of 14.22%.
The last Return On Invested Capital (6.24%) for DGII is above the 3 year average (4.84%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.4%
ROE 6.96%
ROIC 6.24%
ROA(3y)2.67%
ROA(5y)2.25%
ROE(3y)4.11%
ROE(5y)3.36%
ROIC(3y)4.84%
ROIC(5y)3.62%
DGII Yearly ROA, ROE, ROICDGII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4 5

1.3 Margins

DGII has a Profit Margin of 10.07%. This is amongst the best in the industry. DGII outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII's Operating Margin of 13.11% is amongst the best of the industry. DGII outperforms 85.42% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
DGII has a Gross Margin of 61.11%. 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 RankSector Rank
OM 13.11%
PM (TTM) 10.07%
GM 61.11%
OM growth 3Y44.91%
OM growth 5Y23.58%
PM growth 3Y16.34%
PM growth 5Y6.17%
GM growth 3Y2.95%
GM growth 5Y4.71%
DGII Yearly Profit, Operating, Gross MarginsDGII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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7

2. Health

2.1 Basic Checks

DGII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DGII has more shares outstanding
DGII has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DGII has been reduced compared to a year ago.
DGII Yearly Shares OutstandingDGII Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
DGII Yearly Total Debt VS Total AssetsDGII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 5.45 indicates that DGII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.45, DGII belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
DGII has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
DGII has a better Debt to FCF ratio (0.67) than 77.08% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that DGII is not too dependend on debt financing.
The Debt to Equity ratio of DGII (0.12) is better than 60.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.67
Altman-Z 5.45
ROIC/WACC0.61
WACC10.26%
DGII Yearly LT Debt VS Equity VS FCFDGII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

2.3 Liquidity

DGII has a Current Ratio of 1.57. 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 1.57, DGII is in line with its industry, outperforming 41.67% of the companies in the same industry.
DGII has a Quick Ratio of 1.12. 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 Quick ratio of 1.12. This is in the lower half of the industry: DGII underperforms 64.58% 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 RankSector Rank
Current Ratio 1.57
Quick Ratio 1.12
DGII Yearly Current Assets VS Current LiabilitesDGII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.01% over the past year.
The Earnings Per Share has been growing by 52.66% on average over the past years. This is a very strong growth
Looking at the last year, DGII shows a decrease in Revenue. The Revenue has decreased by -4.46% in the last year.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)2.01%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%4.08%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-2.97%

3.2 Future

DGII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
The Revenue is expected to grow by 2.68% on average over the next years.
EPS Next Y3.99%
EPS Next 2Y4.99%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue Next Year0.04%
Revenue Next 2Y2.17%
Revenue Next 3Y2.68%
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.
DGII Yearly Revenue VS EstimatesDGII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M
DGII Yearly EPS VS EstimatesDGII Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1 1.5 2

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.19, the valuation of DGII can be described as correct.
Based on the Price/Earnings ratio, DGII is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
DGII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.51.
DGII is valuated correctly with a Price/Forward Earnings ratio of 14.98.
DGII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, DGII is valued rather cheaply.
Industry RankSector Rank
PE 16.19
Fwd PE 14.98
DGII Price Earnings VS Forward Price EarningsDGII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

DGII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGII is cheaper than 68.75% of the companies in the same industry.
81.25% of the companies in the same industry are more expensive than DGII, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.62
EV/EBITDA 14.13
DGII Per share dataDGII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
DGII has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.06
PEG (5Y)0.31
EPS Next 2Y4.99%
EPS Next 3Y4.09%

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0

5. Dividend

5.1 Amount

DGII does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DIGI INTERNATIONAL INC

NASDAQ:DGII (7/15/2025, 3:59:06 PM)

32.86

+0.21 (+0.64%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners101.46%
Inst Owner Change0%
Ins Owners2.23%
Ins Owner Change12.38%
Market Cap1.22B
Analysts80
Price Target37.91 (15.37%)
Short Float %4.89%
Short Ratio10.88
Dividend
Industry RankSector 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)1
Avg EPS beat(2)1.16%
Min EPS beat(2)-1.13%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)1.06%
Min EPS beat(4)-1.13%
Max EPS beat(4)3.45%
EPS beat(8)6
Avg EPS beat(8)3.08%
EPS beat(12)10
Avg EPS beat(12)6.32%
EPS beat(16)14
Avg EPS beat(16)11.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-1.57%
Revenue beat(4)0
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)-1.04%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)5
Avg Revenue beat(12)0.43%
Revenue beat(16)8
Avg Revenue beat(16)0.6%
PT rev (1m)0%
PT rev (3m)1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.1%
EPS NY rev (1m)0.66%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 16.19
Fwd PE 14.98
P/S 2.91
P/FCF 11.62
P/OCF 11.35
P/B 2.01
P/tB 56.7
EV/EBITDA 14.13
EPS(TTM)2.03
EY6.18%
EPS(NY)2.19
Fwd EY6.68%
FCF(TTM)2.83
FCFY8.6%
OCF(TTM)2.9
OCFY8.81%
SpS11.29
BVpS16.33
TBVpS0.58
PEG (NY)4.06
PEG (5Y)0.31
Profitability
Industry RankSector Rank
ROA 5.4%
ROE 6.96%
ROCE 7.89%
ROIC 6.24%
ROICexc 6.48%
ROICexgc 50.82%
OM 13.11%
PM (TTM) 10.07%
GM 61.11%
FCFM 25.04%
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 Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.67
Debt/EBITDA 0.79
Cap/Depr 7.55%
Cap/Sales 0.61%
Interest Coverage 5.46
Cash Conversion 120.96%
Profit Quality 248.69%
Current Ratio 1.57
Quick Ratio 1.12
Altman-Z 5.45
F-Score7
WACC10.26%
ROIC/WACC0.61
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)2.01%
EPS 3Y87.89%
EPS 5Y52.66%
EPS Q2Q%4.08%
EPS Next Y3.99%
EPS Next 2Y4.99%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y11.17%
Revenue growth 5Y10.78%
Sales Q2Q%-2.97%
Revenue Next Year0.04%
Revenue Next 2Y2.17%
Revenue Next 3Y2.68%
Revenue Next 5YN/A
EBIT growth 1Y18.64%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year34.38%
EBIT Next 3Y13.19%
EBIT Next 5YN/A
FCF growth 1Y117.54%
FCF growth 3Y13.4%
FCF growth 5Y32.74%
OCF growth 1Y109.09%
OCF growth 3Y12.91%
OCF growth 5Y23.47%