DIGI INTERNATIONAL INC (DGII)
US2537981027 - Common Stock
We assign a fundamental rating of 6 out of 10 to DGII. DGII was compared to 54 industry peers in the Communications Equipment industry. DGII has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In the past year DGII had a positive cash flow from operations.
Each year in the past 5 years DGII has been profitable.
DGII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DGII's Return On Assets of 1.92% is fine compared to the rest of the industry. DGII outperforms 68.52% of its industry peers.
Looking at the Return On Equity, with a value of 2.94%, DGII is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
The Return On Invested Capital of DGII (5.24%) is better than 75.93% of its industry peers.
DGII had an Average Return On Invested Capital over the past 3 years of 3.64%. This is significantly below the industry average of 9.88%.
The 3 year average ROIC (3.64%) for DGII is below the current ROIC(5.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 2.94% | ||
| ROIC | 5.24% |
ROA(3y)2.31%
ROA(5y)2.2%
ROE(3y)3.55%
ROE(5y)3.16%
ROIC(3y)3.64%
ROIC(5y)3.01%
1.3 Margins
Looking at the Profit Margin, with a value of 3.60%, DGII is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
DGII's Profit Margin has improved in the last couple of years.
DGII has a Operating Margin of 11.39%. This is amongst the best in the industry. DGII outperforms 88.89% 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 57.02%, DGII is in the better half of the industry, outperforming 79.63% 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 | 11.39% | ||
| PM (TTM) | 3.6% | ||
| GM | 57.02% |
OM growth 3Y40.25%
OM growth 5Y52.48%
PM growth 3Y22.79%
PM growth 5Y51.18%
GM growth 3Y3.22%
GM growth 5Y3.35%
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
The number of shares outstanding for DGII has been increased compared to 5 years ago.
DGII has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.18 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII has a better Altman-Z score (3.18) than 77.78% of its industry peers.
The Debt to FCF ratio of DGII is 3.97, which is a good value as it means it would take DGII, 3.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DGII (3.97) is better than 61.11% of its industry peers.
DGII has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.36, DGII is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.5
WACC10.45%
2.3 Liquidity
DGII has a Current Ratio of 2.35. This indicates that DGII is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.35, DGII is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that DGII should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.39, DGII is in line with its industry, outperforming 53.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
DGII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.73%, which is quite good.
Measured over the past years, DGII shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.21% on average per year.
The Revenue has been growing slightly by 6.86% in the past year.
DGII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.41% yearly.
EPS 1Y (TTM)11.73%
EPS 3Y90.35%
EPS 5Y70.21%
EPS growth Q2Q0%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y16.78%
Revenue growth 5Y14.41%
Revenue growth Q2Q-2.94%
3.2 Future
DGII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.71% yearly.
The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y4.58%
EPS Next 2Y7.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y4.05%
Revenue Next 3YN/A
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.
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 13.07, the valuation of DGII can be described as correct.
Based on the Price/Earnings ratio, DGII is valued cheaper than 81.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. DGII is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.26, the valuation of DGII can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 74.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DGII to the average of the S&P500 Index (20.72), we can say DGII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 68.52% of the companies are valued more expensively.
70.37% 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 | 19.32 | ||
| EV/EBITDA | 12.94 |
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.
The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)0.19
EPS Next 2Y7.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DGII!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DIGI INTERNATIONAL INC
NASDAQ:DGII (5/3/2024, 1:34:36 PM)
26.14
+0.64 (+2.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap947.84M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 11.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.86
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 2.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.39% | ||
| PM (TTM) | 3.6% | ||
| GM | 57.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.73%
EPS 3Y90.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.86%
Revenue growth 3Y16.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y