DIGI INTERNATIONAL INC (DGII) Stock Fundamental Analysis
NASDAQ:DGII - Nasdaq - US2537981027 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DGII. DGII was compared to 50 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 correct valuation and a medium 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.
In the past 5 years DGII has always been profitable.
Each year in the past 5 years DGII had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DGII (5.40%) is better than 78.00% of its industry peers.
With a decent Return On Equity value of 6.96%, DGII is doing good in the industry, outperforming 76.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.24%, DGII is doing good in the industry, outperforming 76.00% of the companies in the same industry.
DGII had an Average Return On Invested Capital over the past 3 years of 4.84%. This is significantly below the industry average of 13.82%.
The 3 year average ROIC (4.84%) for DGII is below the current ROIC(6.24%), indicating increased profibility in the last year.
| 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
DGII's Profit Margin of 10.07% is amongst the best of the industry. DGII outperforms 84.00% of its industry peers.
DGII's Profit Margin has improved in the last couple of years.
DGII has a Operating Margin of 13.11%. This is amongst the best in the industry. DGII outperforms 86.00% of its industry peers.
DGII's Operating Margin has improved in the last couple of years.
DGII has a Gross Margin of 61.11%. This is amongst the best in the industry. DGII outperforms 84.00% of its industry peers.
In the last couple of years the Gross Margin of DGII has grown nicely.
| 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
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.
Compared to 5 years ago, DGII has more shares outstanding
The debt/assets ratio for DGII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.73 indicates that DGII is not in any danger for bankruptcy at the moment.
DGII's Altman-Z score of 5.73 is amongst the best of the industry. DGII outperforms 82.00% 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.
With a decent Debt to FCF ratio value of 0.67, DGII is doing good in the industry, outperforming 78.00% of the companies in the same industry.
DGII has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
DGII has a better Debt to Equity ratio (0.12) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 5.73 |
ROIC/WACC0.61
WACC10.29%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DGII should not have too much problems paying its short term obligations.
With a Current ratio value of 1.57, DGII perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that DGII should not have too much problems paying its short term obligations.
The Quick ratio of DGII (1.12) is worse than 64.00% 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 | 1.57 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
DGII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.01%.
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 -4.46% in the last year.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
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
DGII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.09% yearly.
The Revenue is expected to grow by 2.68% on average over the next years.
EPS Next Y3.91%
EPS Next 2Y4.87%
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
With a Price/Earnings ratio of 17.35, DGII is valued on the expensive side.
78.00% of the companies in the same industry are more expensive than DGII, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.21, DGII is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.10 indicates a correct valuation of DGII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DGII indicates a somewhat cheap valuation: DGII is cheaper than 70.00% 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 (21.70), we can say DGII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGII is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
84.00% 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 | 12.46 | ||
| EV/EBITDA | 15.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DGII may justify a higher PE ratio.
PEG (NY)4.44
PEG (5Y)0.33
EPS Next 2Y4.87%
EPS Next 3Y4.09%
5. Dividend
5.1 Amount
DGII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.23
+0.37 (+1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.46%
Inst Owner Change1.64%
Ins Owners2.23%
Ins Owner Change8.88%
Market Cap1.31B
Analysts80
Price Target37.91 (7.61%)
Short Float %4.88%
Short Ratio10.74
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)3.53%
PT rev (3m)1.27%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0.58%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 16.1 | ||
| P/S | 3.12 | ||
| P/FCF | 12.46 | ||
| P/OCF | 12.16 | ||
| P/B | 2.16 | ||
| P/tB | 60.79 | ||
| EV/EBITDA | 15.05 |
EPS(TTM)2.03
EY5.76%
EPS(NY)2.19
Fwd EY6.21%
FCF(TTM)2.83
FCFY8.03%
OCF(TTM)2.9
OCFY8.22%
SpS11.29
BVpS16.33
TBVpS0.58
PEG (NY)4.44
PEG (5Y)0.33
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 | 5.73 |
F-Score7
WACC10.29%
ROIC/WACC0.61
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 Y3.91%
EPS Next 2Y4.87%
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%