DGII Stock Analysis: Digi International | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 2.645m USD | 12M Return: 101.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 25.7M
EPS Trend: 87.2%
Qual. Beats: 1
Rev. Trend: 17.2%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Digi International Inc. (DGII) is a U.S.-based provider of Internet of Things (IoT) connectivity products and services, operating through two segments: IoT Products & Services and IoT Solutions. Founded in 1985 and headquartered in Hopkins, Minnesota, the company sells globally across the United States, Europe, the Middle East, Africa, and other international markets. It is listed on NASDAQ and is classified within the Information Technology sector, specifically the Communications Equipment sub-industry.
DGIIs product portfolio includes cellular routers and modules, console servers for data center and edge access, and radio frequency products marketed under the Digi XBee brand. It also offers embedded system-on-module products under the Digi Connect and ConnectCore brands, as well as serial servers and USB solutions for infrastructure management. The company complements its hardware with software and services such as the cloud-based Digi Remote Manager platform and SmartSense by Digi, which is used for wireless temperature monitoring in food service, healthcare, and logistics.
A core element of the business model is recurring revenue, generated through cloud subscriptions, data plan services, and Managed Network as a Service (MNaaS) offerings under the Ventus brand. The IoT connectivity sector typically relies on this combination of hardware sales and ongoing service subscriptions, along with professional services such as site planning, implementation, and technical support, to build long-term customer relationships.
- SmartSense recurring revenue scales across food and pharma verticals
- Cellular router demand strengthens on industrial IoT adoption
- Strong dollar pressures EMEA revenue and margins
| 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 (99.8m): 1.33 < 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: 8.42 > 6 (EBIT TTM 60.8m / 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 60.8m / Avg Total Assets 877.6m) |
| D: 2.16 (Book Value of Equity 666.0m / Total Liabilities 308.3m) |
| Altman-Z'' = 3.87 = 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 July 09, 2026, the stock is trading at USD 71.33 with a total of 394,498 shares traded. Over the past week, the price has changed by -4.83%, over one month by +6.08%, over three months by +31.70% and over the past year by +101.90%.
Current recommended Stop Loss: 67.60 (which is 5.2% or 1.3 ATR below the current price).
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 | 72.2 | 1.2% |
P/E Trailing = 64.963
P/E Forward = 25.2525
P/S = 5.5681
P/B = 4.0852
P/EG = 0.9808
Revenue TTM = 475.1m USD
EBIT TTM = 60.8m USD
EBITDA TTM = 99.8m 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 = 2.78b USD (2.65b + Debt 164.7m - CCE 31.7m)
Interest Coverage Ratio = 8.42 (Ebit TTM 60.8m / Interest Expense TTM 7.21m)
EV/FCF = 21.92x (Enterprise Value 2.78b / FCF TTM 126.7m)
FCF Yield = 4.56% (FCF TTM 126.7m / Enterprise Value 2.78b)
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 = 2.85 (Enterprise Value 2.78b / Total Assets 974.2m)
Interest Expense / Debt = 4.38% (Interest Expense 7.21m / Debt 164.7m)
Taxrate = 21.81% (12.1m / 55.3m)
NOPAT = 47.5m (EBIT 60.8m * (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 = 1.33 (Net Debt 133.0m / EBITDA 99.8m)
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 = 7.73% (EBIT 60.8m / Capital Employed (Equity 643.2m + L.T.Debt 143.0m))
RoIC = 5.79% (NOPAT 47.5m / Invested Capital 821.0m)
WACC = 10.90% (E(2.65b)/V(2.81b) * Re(11.37%) + D(164.7m)/V(2.81b) * Rd(4.38%) * (1-Tc(0.22)))
Discount Rate = 11.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 2.84%
[DCF] Terminal Value 70.17% ; FCFF base≈118.0m ; Y1≈135.2m ; Y5≈199.0m
[DCF] Fair Price = 51.16 (EV 2.06b - Net Debt 133.0m = Equity 1.93b / Shares 37.7m; r=10.90% [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=+0.00% | Revisions=+40% | Analysts=5
EPS current Year (2026-09-30): EPS=2.48 | Chg30d=+0.00% | Revisions=+40% | GrowthEPS=+17.9% | GrowthRev=+21.2%
EPS next Year (2027-09-30): EPS=2.80 | Chg30d=+1.08% | Revisions=+25% | GrowthEPS=+13.1% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +62% (up=5, down=0)