DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII - Nasdaq - US2537981027 - Common Stock - Currency: USD
DGII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DGII was profitable.
DGII had a positive operating cash flow in the past year.
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 5.40%. 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 6.96%, DGII is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.24%, DGII is in the better half of the industry, outperforming 75.00% 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 14.30%.
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 Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 10.07%, DGII belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
DGII's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 61.11%, DGII belongs to the top 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 | 13.11% | ||
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.53 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a better Altman-Z score (5.53) than 83.33% of its industry peers.
The Debt to FCF ratio of DGII is 0.67, which is an excellent value as it means it would take DGII, only 0.67 years of fcf income to pay off all of its debts.
DGII has a Debt to FCF ratio of 0.67. This is in the better half of the industry: DGII outperforms 77.08% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that DGII is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, 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 | 0.12 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 5.53 |
ROIC/WACC0.6
WACC10.48%
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.
With a Current ratio value of 1.57, DGII perfoms like the industry average, 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.
With a Quick ratio value of 1.12, DGII is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
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 | 1.57 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.01% over the past year.
Measured over the past years, DGII shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.66% on average per year.
The Revenue has decreased by -4.46% in the past 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)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
Based on estimates for the next years, DGII will show a small growth in Earnings Per Share. The EPS will grow by 4.09% on average per year.
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.
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
Based on the Price/Earnings ratio of 16.54, the valuation of DGII can be described as correct.
DGII's Price/Earnings ratio is a bit cheaper when compared to the industry. DGII is cheaper than 72.92% 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 27.53.
Based on the Price/Forward Earnings ratio of 15.31, the valuation of DGII can be described as correct.
Based on the Price/Forward Earnings ratio, DGII is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
DGII's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than DGII, based on the Enterprise Value to EBITDA ratio.
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 | 11.88 | ||
| EV/EBITDA | 14.38 |
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)4.15
PEG (5Y)0.31
EPS Next 2Y4.99%
EPS Next 3Y4.09%
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DGII (7/23/2025, 3:21:44 PM)
33.585
+0.34 (+1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.46%
Inst Owner Change-0.03%
Ins Owners2.23%
Ins Owner Change12.38%
Market Cap1.24B
Analysts80
Price Target37.91 (12.88%)
Short Float %4.89%
Short Ratio10.88
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)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)0.08%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 15.31 | ||
| P/S | 2.97 | ||
| P/FCF | 11.88 | ||
| P/OCF | 11.6 | ||
| P/B | 2.06 | ||
| P/tB | 57.95 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)2.03
EY6.04%
EPS(NY)2.19
Fwd EY6.53%
FCF(TTM)2.83
FCFY8.42%
OCF(TTM)2.9
OCFY8.62%
SpS11.29
BVpS16.33
TBVpS0.58
PEG (NY)4.15
PEG (5Y)0.31
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.53 |
F-Score7
WACC10.48%
ROIC/WACC0.6
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%