DGII Stock Analysis: Digi International | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 2.829m USD | 12M Return: 101.1% | US2537981027 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 26.1M
EPS Trend: 86.2%
Qual. Beats: 2
Rev. Trend: 49.6%
Qual. Beats: 5
Warnings
Tailwinds
Seasonality 11.7 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. (NASDAQ: DGII) is a U.S.-based provider of Internet of Things (IoT) connectivity products, services, and solutions, operating through two reporting segments: IoT Products & Services and IoT Solutions. The company sells cellular routers, cellular modules, radio frequency products under the Digi XBee brand, embedded system-on-modules under Digi Connect and ConnectCore, and infrastructure management products such as serial servers and USB solutions. It also generates recurring revenue through cloud-based offerings including Digi Remote Manager and Lighthouse, as well as vertical-specific solutions like SmartSense by Digi (temperature and compliance monitoring) and Ventus (Managed Network-as-a-Service), supplemented by professional services, data plan subscriptions, and technical support.
Founded in 1985 and headquartered in Hopkins, Minnesota, Digi is classified within the Information Technology sector under the Communications Equipment sub-industry and has been listed on the NASDAQ since 1990. Its business model combines hardware sales with subscription-based cloud services and managed connectivity, which is typical of communications equipment vendors transitioning toward higher-margin recurring revenue streams.
- Cellular router and module demand drives IoT Products growth
- SmartSense recurring revenue scales across food and pharma verticals
- Ventus MNaaS solutions expand managed services margins
| Net Income: 48.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 0.61 > 1.0 |
| NWC/Revenue: 3.27% < 20% (prev 9.12%; Δ -5.84% < -1%) |
| CFO/TA 0.14 > 3% & CFO 138.7m > Net Income 48.7m |
| Net Debt (100.7m) to EBITDA (111.1m): 0.91 < 3 |
| Current Ratio: 1.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (38.9m) vs 12m ago 3.36% < -2% |
| Gross Margin: 63.82% > 18% (prev 62.20%; Δ 1.62% > 0.5%) |
| Asset Turnover: 58.36% > 50% (prev 54.64%; Δ 3.72% > 0%) |
| Interest Coverage Ratio: 8.72 > 6 (EBIT TTM 68.7m / Interest Expense TTM 7.89m) |
| A: 0.02 (Total Current Assets 145.3m - Total Current Liabilities 128.7m) / Total Assets 964.4m |
| B: 0.34 (Retained Earnings 326.9m / Total Assets 964.4m) |
| C: 0.08 (EBIT TTM 68.7m / Avg Total Assets 867.3m) |
| D: 2.45 (Book Value of Equity 685.2m / Total Liabilities 279.2m) |
| Altman-Z'' = 4.33 = AA |
| DSRI: 0.82 (Receivables 66.6m/67.8m, Revenue 506.2m/420.9m) |
| GMI: 0.97 (GM 62.20% / 63.82%) |
| AQI: 1.04 (AQ_t 0.81 / AQ_t-1 0.78) |
| SGI: 1.20 (Revenue 506.2m / 420.9m) |
| TATA: -0.09 (NI 48.7m - CFO 138.7m) / TA 964.4m) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of October 07, 2026, the stock is trading at USD 73.94 with a total of 638,679 shares traded. Over the past week, the price has changed by -3.35%, over one month by +5.76%, over three months by +0.98% and over the past year by +101.14%.
Current recommended Stop Loss: 68.10 (which is 7.9% or 2.1 ATR below the current price).
Digi International has received a consensus analysts rating of 4.60. Therefore, it is recommended to buy DGII.
- StrongBuy: 4
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 85.4 | 15.5% |
P/E Trailing = 60.129
P/E Forward = 23.9234
P/S = 5.5894
P/B = 4.1844
P/EG = 0.8327
Revenue TTM = 506.2m USD
EBIT TTM = 68.7m USD
EBITDA TTM = 111.1m USD
Long Term Debt = 108.1m USD (from longTermDebt, last quarter)
Short Term Debt = 2.26m USD (from shortTermDebt, last quarter)
Debt = 128.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 10.3m
Net Debt = 100.7m USD (calculated: Debt 128.6m - CCE 28.0m)
Enterprise Value = 2.93b USD (2.83b + Debt 128.6m - CCE 28.0m)
Interest Coverage Ratio = 8.72 (Ebit TTM 68.7m / Interest Expense TTM 7.89m)
EV/FCF = 21.68x (Enterprise Value 2.93b / FCF TTM 135.2m)
FCF Yield = 4.61% (FCF TTM 135.2m / Enterprise Value 2.93b)
FCF Margin = 26.70% (FCF TTM 135.2m / Revenue TTM 506.2m)
Net Margin = 9.63% (Net Income TTM 48.7m / Revenue TTM 506.2m)
Gross Margin = 63.82% ((Revenue TTM 506.2m - Cost of Revenue TTM 183.1m) / Revenue TTM)
Gross Margin QoQ = 64.85% (prev 64.00%)
Tobins Q-Ratio = 3.04 (Enterprise Value 2.93b / Total Assets 964.4m)
Interest Expense / Debt = 6.13% (Interest Expense 7.89m / Debt 128.6m)
Taxrate = 22.15% (13.9m / 62.6m)
NOPAT = 53.5m (EBIT 68.7m * (1 - 22.15%))
Current Ratio = 1.13 (Total Current Assets 145.3m / Total Current Liabilities 128.7m)
Debt / Equity = 0.19 (Debt 128.6m / totalStockholderEquity, last quarter 685.2m)
Debt / EBITDA = 0.91 (Net Debt 100.7m / EBITDA 111.1m)
Debt / FCF = 0.74 (Net Debt 100.7m / FCF TTM 135.2m)
Total Stockholder Equity = 659.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.62% (Net Income 48.7m / Total Assets 964.4m)
RoE = 7.39% (Net Income TTM 48.7m / Total Stockholder Equity 659.1m)
RoCE = 8.96% (EBIT 68.7m / Capital Employed (Equity 659.1m + L.T.Debt 108.1m))
RoIC = 6.58% (NOPAT 53.5m / Invested Capital 812.6m)
WACC = 10.47% (E(2.83b)/V(2.96b) * Re(10.73%) + D(128.6m)/V(2.96b) * Rd(6.13%) * (1-Tc(0.22)))
Discount Rate = 10.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 97.50 | Cagr: 2.30%
[DCF] Terminal Value 71.43% ; FCFF base≈122.4m ; Y1≈140.3m ; Y5≈206.5m
[DCF] Fair Price = 56.90 (EV 2.26b - Net Debt 100.7m = Equity 2.16b / Shares 37.9m; r=10.47% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 86.17 | EPS CAGR: 5.70% | SUE: 3.56 | # QB: 2
Revenue Correlation: 49.65 | Revenue CAGR: 3.13% | SUE: 2.19 | # QB: 5
EPS current Quarter (2026-12-31): EPS=0.73 | Chg30d=+0.00% | Revisions=+25% | Analysts=4
EPS current Year (2026-09-30): EPS=2.69 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+28.2% | GrowthRev=+23.7%
EPS next Year (2027-09-30): EPS=3.13 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+16.3% | GrowthRev=+8.7%
[Analyst] Revisions Ratio: +70% (up=7, down=0)