43.29 USD
-0.86 (-1.95%)
43.29 USD
0 (0%)
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 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
DGII had positive earnings in the past year.
In the past year DGII had a positive cash flow from operations.
Each year in the past 5 years DGII has been profitable.
In the past 5 years DGII always reported a positive cash flow from operatings.
1.2 Ratios
DGII has a Return On Assets of 4.42%. This is in the better half of the industry: DGII outperforms 77.08% of its industry peers.
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.
DGII's Return On Invested Capital of 6.22% is fine compared to the rest of the industry. DGII outperforms 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 last Return On Invested Capital (6.22%) for DGII is above the 3 year average (6.07%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.48%, DGII is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
DGII's Profit Margin has improved in the last couple of years.
DGII has a better Operating Margin (13.08%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of DGII has grown nicely.
DGII's Gross Margin of 62.92% is amongst the best of the industry. DGII outperforms 81.25% of its industry peers.
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
DGII has more shares outstanding than it did 5 years ago.
DGII has a worse debt/assets ratio than last year.
2.2 Solvency
DGII has an Altman-Z score of 4.51. This indicates that DGII is financially healthy and has little risk of bankruptcy at the moment.
DGII has a Altman-Z score of 4.51. This is in the better half of the industry: DGII outperforms 79.17% of its industry peers.
DGII has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of 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.
DGII has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.25, DGII perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.64
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.21 indicates that DGII should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, DGII is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that DGII may have some problems paying its short term obligations.
DGII has a worse Quick ratio (0.85) than 85.42% 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 | 1.21 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.53% over the past year.
The Earnings Per Share has been growing by 48.58% on average over the past years. This is a very strong growth
Looking at the last year, DGII shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
Measured over the past years, DGII shows a quite strong growth in Revenue. The Revenue has been growing by 9.02% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.61, the valuation of DGII can be described as rather expensive.
DGII's Price/Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 70.83% 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 26.51.
DGII is valuated rather expensively with a Price/Forward Earnings ratio of 18.51.
DGII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 66.67% of the companies in the same industry.
DGII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| 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.
79.17% 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 | 15.3 | ||
| EV/EBITDA | 19.32 |
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)1.81
PEG (5Y)0.42
EPS Next 2Y12.43%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
No dividends for DGII!.
| 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 | 19.32 |
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 | 4.51 |
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 4 / 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.