(DGII) Digi International - NASDAQ
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 2.486m USD | Total Return: 92.6% in 12m
Avg Turnover: 25.8M
EPS Trend: 87.2%
Qual. Beats: 1
Rev. Trend: 17.2%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Rs Leader, Tailwind, Confidence
Digi International Inc. (DGII) provides mission-critical Internet of Things (IoT) connectivity through two primary segments: IoT Products & Services and IoT Solutions. The company designs and manufactures cellular routers, embedded modules, console servers, and radio frequency products under brands such as Digi XBee and ConnectCore. Its hardware portfolio is supported by software-as-a-service (SaaS) platforms, including Digi Remote Manager and SmartSense, which facilitate remote device management and environmental monitoring for the healthcare and logistics industries.
The company operates within the Communications Equipment sub-industry, where business models increasingly prioritize recurring revenue through Managed Network-as-a-Service (MNaaS) and cloud-based subscription models to offset the cyclical nature of hardware sales. This shift toward software integration is a common strategy among industrial IoT providers seeking to increase customer switching costs and improve long-term margins. For a deeper look into these financial metrics, ValueRay provides comprehensive data tools.
Headquartered in Hopkins, Minnesota, Digi International serves a global market across North America, Europe, and Africa. Its service offerings extend beyond hardware to include site planning, wireless design services, and data plan subscriptions, positioning the firm as an end-to-end provider for complex networking infrastructure.
- Annual recurring revenue growth from SaaS and software subscriptions expands operating margins
- Industrial IoT hardware demand fluctuates based on global capital expenditure cycles
- Supply chain stability and component availability impact cellular router delivery timelines
- Integration of acquisitions like Ventus drives enterprise managed network service expansion
- High exposure to government and infrastructure spending influences long-term contract volume
| Net Income: 43.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -0.41 > 1.0 |
| NWC/Revenue: 3.10% < 20% (prev 11.72%; Δ -8.62% < -1%) |
| CFO/TA 0.13 > 3% & CFO 129.3m > Net Income 43.2m |
| Net Debt (133.0m) to EBITDA (101.7m): 1.31 < 3 |
| Current Ratio: 1.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (38.5m) vs 12m ago 2.56% < -2% |
| Gross Margin: 63.45% > 18% (prev 61.11%; Δ 2.34% > 0.5%) |
| Asset Turnover: 54.13% > 50% (prev 53.60%; Δ 0.53% > 0%) |
| Interest Coverage Ratio: 8.68 > 6 (EBIT TTM 62.6m / Interest Expense TTM 7.21m) |
| A: 0.02 (Total Current Assets 146.6m - Total Current Liabilities 131.9m) / Total Assets 974.2m |
| B: 0.32 (Retained Earnings 311.2m / Total Assets 974.2m) |
| C: 0.07 (EBIT TTM 62.6m / Avg Total Assets 877.6m) |
| D: 2.16 (Book Value of Equity 666.0m / Total Liabilities 308.3m) |
| Altman-Z'' = 3.89 = AA |
| DSRI: 0.83 (Receivables 61.2m/64.9m, Revenue 475.1m/418.6m) |
| GMI: 0.96 (GM 61.11% / 63.45%) |
| AQI: 1.05 (AQ_t 0.81 / AQ_t-1 0.77) |
| SGI: 1.13 (Revenue 475.1m / 418.6m) |
| TATA: -0.09 (NI 43.2m - CFO 129.3m) / TA 974.2m) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of June 09, 2026, the stock is trading at USD 67.24 with a total of 413,535 shares traded.
Over the past week, the price has changed by -1.77%,
over one month by +2.22%,
over three months by +35.40% and
over the past year by +92.55%.
Digi International has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy DGII.
- StrongBuy: 3
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 68.5 | 1.9% |
P/E Trailing = 58.3628
P/E Forward = 23.0947
P/S = 5.234
P/B = 3.7376
P/EG = 0.9808
Revenue TTM = 475.1m USD
EBIT TTM = 62.6m USD
EBITDA TTM = 101.7m USD
Long Term Debt = 143.0m USD (from longTermDebt, last quarter)
Short Term Debt = 2.49m USD (from shortTermDebt, last quarter)
Debt = 164.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 10.9m
Net Debt = 133.0m USD (calculated: Debt 164.7m - CCE 31.7m)
Enterprise Value = 2.62b USD (2.49b + Debt 164.7m - CCE 31.7m)
Interest Coverage Ratio = 8.68 (Ebit TTM 62.6m / Interest Expense TTM 7.21m)
EV/FCF = 20.67x (Enterprise Value 2.62b / FCF TTM 126.7m)
FCF Yield = 4.84% (FCF TTM 126.7m / Enterprise Value 2.62b)
FCF Margin = 26.68% (FCF TTM 126.7m / Revenue TTM 475.1m)
Net Margin = 9.10% (Net Income TTM 43.2m / Revenue TTM 475.1m)
Gross Margin = 63.45% ((Revenue TTM 475.1m - Cost of Revenue TTM 173.6m) / Revenue TTM)
Gross Margin QoQ = 64.00% (prev 62.38%)
Tobins Q-Ratio = 2.69 (Enterprise Value 2.62b / Total Assets 974.2m)
Interest Expense / Debt = 4.38% (Interest Expense 7.21m / Debt 164.7m)
Taxrate = 21.81% (12.1m / 55.3m)
NOPAT = 48.9m (EBIT 62.6m * (1 - 21.81%))
Current Ratio = 1.11 (Total Current Assets 146.6m / Total Current Liabilities 131.9m)
Debt / Equity = 0.25 (Debt 164.7m / totalStockholderEquity, last quarter 666.0m)
Debt / EBITDA = 1.31 (Net Debt 133.0m / EBITDA 101.7m)
Debt / FCF = 1.05 (Net Debt 133.0m / FCF TTM 126.7m)
Total Stockholder Equity = 643.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.93% (Net Income 43.2m / Total Assets 974.2m)
RoE = 6.72% (Net Income TTM 43.2m / Total Stockholder Equity 643.2m)
RoCE = 7.96% (EBIT 62.6m / Capital Employed (Equity 643.2m + L.T.Debt 143.0m))
RoIC = 5.96% (NOPAT 48.9m / Invested Capital 821.0m)
WACC = 10.67% (E(2.49b)/V(2.65b) * Re(11.15%) + D(164.7m)/V(2.65b) * Rd(4.38%) * (1-Tc(0.22)))
Discount Rate = 11.15% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 2.84%
[DCF] Terminal Value 70.84% ; FCFF base≈118.0m ; Y1≈135.2m ; Y5≈199.0m
[DCF] Fair Price = 52.79 (EV 2.12b - Net Debt 133.0m = Equity 1.99b / Shares 37.7m; r=10.67% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 87.21 | EPS CAGR: 4.37% | SUE: 2.58 | # QB: 1
Revenue Correlation: 17.20 | Revenue CAGR: 0.68% | SUE: 2.33 | # QB: 4
EPS current Quarter (2026-06-30): EPS=0.66 | Chg30d=+15.14% | Revisions=+33% | Analysts=5
EPS current Year (2026-09-30): EPS=2.48 | Chg30d=+7.19% | Revisions=+33% | GrowthEPS=+17.9% | GrowthRev=+20.0%
EPS next Year (2027-09-30): EPS=2.77 | Chg30d=+5.46% | Revisions=+20% | GrowthEPS=+11.9% | GrowthRev=+7.6%
[Analyst] Revisions Ratio: +33%