DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
USA - NASDAQ:DGII - US2537981027 - Common Stock
36.6315 USD
+0.21 (+0.58%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.54%, DGII is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.87%, DGII is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.60%, DGII is doing good in the industry, outperforming 72.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DGII is significantly below the industry average of 12.89%.
The 3 year average ROIC (4.84%) for DGII is below the current ROIC(6.60%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 10.14%, 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 Profit Margin of DGII has grown nicely.
DGII has a Operating Margin of 13.52%. This is amongst the best in the industry. DGII outperforms 83.33% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
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.
DGII's Gross Margin has improved in the last couple of years.
| 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
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.
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
DGII has an Altman-Z score of 6.81. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DGII (6.81) is better than 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.
DGII's Debt to FCF ratio of 0.39 is fine compared to the rest of the industry. DGII outperforms 79.17% 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 | 6.81 |
ROIC/WACC0.68
WACC9.7%
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.
With a Current ratio value of 1.43, DGII is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.03 indicates that DGII should not have too much problems paying its short term obligations.
DGII's Quick ratio of 1.03 is on the low side compared to the rest of the industry. DGII is outperformed by 75.00% of its industry peers.
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 | 1.43 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.52% over the past year.
DGII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.66% yearly.
Looking at the last year, DGII shows a decrease in Revenue. The Revenue has decreased by -2.37% in the last year.
DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
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.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue 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
With a Price/Earnings ratio of 17.78, DGII is valued on the expensive side.
77.08% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
DGII is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
DGII is valuated correctly with a Price/Forward Earnings ratio of 16.35.
DGII's Price/Forward Earnings ratio is rather cheap when compared to the industry. DGII is cheaper than 81.25% 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 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
83.33% 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 | 13.16 | ||
| EV/EBITDA | 15.11 |
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)3.55
PEG (5Y)0.34
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 (10/6/2025, 11:50:54 AM)
36.6315
+0.21 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.2%
Inst Owner Change0%
Ins Owners2.22%
Ins Owner Change-0.03%
Market Cap1.36B
Analysts80
Price Target41.82 (14.16%)
Short Float %4.15%
Short Ratio7.44
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)0.4%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.07%
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 | 17.78 | ||
| Fwd PE | 16.35 | ||
| P/S | 3.23 | ||
| P/FCF | 13.16 | ||
| P/OCF | 12.78 | ||
| P/B | 2.19 | ||
| P/tB | 32.77 | ||
| EV/EBITDA | 15.11 |
EPS(TTM)2.06
EY5.62%
EPS(NY)2.24
Fwd EY6.12%
FCF(TTM)2.78
FCFY7.6%
OCF(TTM)2.87
OCFY7.82%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)3.55
PEG (5Y)0.34
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%
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 Turnover0.55
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 | 6.81 |
F-Score7
WACC9.7%
ROIC/WACC0.68
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%