DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII - US2537981027 - Common Stock
34.15 USD
-0.4 (-1.16%)
34.15 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 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.
DGII had positive earnings in each of the past 5 years.
Each year in the past 5 years DGII had a positive operating cash flow.
1.2 Ratios
DGII has a Return On Assets of 5.54%. This is in the better half of the industry: DGII outperforms 75.00% of its industry peers.
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.
The Return On Invested Capital of DGII (6.60%) is better than 72.92% 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 13.71%.
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
The Profit Margin of DGII (10.14%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of DGII has grown nicely.
DGII has a better Operating Margin (13.52%) than 83.33% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.20%, DGII belongs to the top 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.
DGII has more shares outstanding than it did 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 6.53 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a Altman-Z score of 6.53. This is amongst the best in the industry. DGII outperforms 83.33% of its industry peers.
The Debt to FCF ratio of DGII is 0.39, which is an excellent value as it means it would take DGII, only 0.39 years of fcf income to pay off all of its debts.
DGII has a better Debt to FCF ratio (0.39) than 79.17% of its industry peers.
DGII has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
DGII has a better Debt to Equity ratio (0.06) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 6.53 |
ROIC/WACC0.66
WACC9.97%
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.
Looking at the Current ratio, with a value of 1.43, DGII is doing worse than 72.92% of the companies in the same industry.
DGII has a Quick Ratio of 1.03. 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 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%.
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 -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
The Earnings Per Share is expected to grow by 7.07% on average over the next years.
DGII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y4.91%
EPS Next 2Y5.58%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year0.68%
Revenue Next 2Y3.86%
Revenue Next 3Y3.19%
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 16.58, which indicates a correct valuation of DGII.
Based on the Price/Earnings ratio, DGII is valued a bit cheaper than 79.17% of the companies in the same industry.
DGII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 15.39, which 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 75.00% of the companies in the same industry.
DGII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.54, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DGII is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.27 | ||
| EV/EBITDA | 14.35 |
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)3.38
PEG (5Y)0.31
EPS Next 2Y5.58%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.15
-0.4 (-1.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.07%
Inst Owner Change-0.6%
Ins Owners2.23%
Ins Owner Change-0.03%
Market Cap1.27B
Analysts80
Price Target41.31 (20.97%)
Short Float %4.29%
Short Ratio8.88
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)8.97%
PT rev (3m)8.97%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)0.89%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 15.39 | ||
| P/S | 3.01 | ||
| P/FCF | 12.27 | ||
| P/OCF | 11.91 | ||
| P/B | 2.04 | ||
| P/tB | 30.55 | ||
| EV/EBITDA | 14.35 |
EPS(TTM)2.06
EY6.03%
EPS(NY)2.22
Fwd EY6.5%
FCF(TTM)2.78
FCFY8.15%
OCF(TTM)2.87
OCFY8.39%
SpS11.34
BVpS16.74
TBVpS1.12
PEG (NY)3.38
PEG (5Y)0.31
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 | 6.53 |
F-Score7
WACC9.97%
ROIC/WACC0.66
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 Y4.91%
EPS Next 2Y5.58%
EPS Next 3Y7.07%
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 2Y3.86%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
EBIT growth 1Y21.92%
EBIT growth 3Y61.11%
EBIT growth 5Y36.9%
EBIT Next Year34.38%
EBIT Next 3Y13.19%
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%