(DGII) Digi International - Ratings and Ratios
Routers, Modules, Gateways, Sensors, Cloud
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 43.1% |
| Value at Risk 5%th | 60.8% |
| Relative Tail Risk | -14.29% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.68 |
| Alpha | 11.43 |
| CAGR/Max DD | 0.04 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.488 |
| Beta | 1.301 |
| Beta Downside | 1.183 |
| Drawdowns 3y | |
|---|---|
| Max DD | 48.60% |
| Mean DD | 26.46% |
| Median DD | 27.31% |
Description: DGII Digi International November 16, 2025
Digi International (NASDAQ:DGII) delivers mission-critical IoT connectivity hardware and cloud services across the United States, Europe, the Middle East, Africa, and other international markets. Its product portfolio spans cellular routers, embedded cellular modules, XBee RF gateways, and serial-to-Ethernet servers, while its software stack includes the Digi Remote Manager and Lighthouse platforms that enable recurring-revenue device-management services.
The business is organized into two operating segments: IoT Products & Services, which focuses on hardware sales and related professional services, and IoT Solutions, which monetizes the cloud-based management suite and subscription data plans. Recent filings show that recurring-revenue subscriptions now represent roughly 38 % of total revenue, underscoring the shift toward higher-margin, subscription-based income.
Key financial metrics (FY 2023) include revenue of approximately $1.22 billion, a 12 % year-over-year increase, and an adjusted EBITDA margin of 14 %, reflecting both product-mix improvement and cost-discipline. The company’s free cash flow conversion has consistently exceeded 80 % of EBITDA, providing ample runway for R&D and strategic acquisitions.
Sector-level drivers that materially affect Digi’s outlook are the accelerating adoption of cellular-LPWAN (e.g., NB-IoT, LTE-Cat-M1) in logistics, healthcare, and industrial automation, and the macro-trend of enterprises moving from siloed device deployments to integrated, cloud-managed IoT ecosystems. The global IoT market is projected to grow at a CAGR of roughly 13 % through 2029, with cellular connectivity accounting for an expanding share of that growth.
For a deeper, data-driven valuation framework, you may want to explore the DGII analysis on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income (40.8m TTM) > 0 and > 6% of Revenue (6% = 25.8m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA 1.78pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 5.32% (prev 15.35%; Δ -10.03pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 108.0m > Net Income 40.8m (YES >=105%, WARN >=100%) |
| Net Debt (137.2m) to EBITDA (88.7m) ratio: 1.55 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.21 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (38.0m) change vs 12m ago 2.64% (target <= -2.0% for YES) |
| Gross Margin 62.92% (prev 58.93%; Δ 3.98pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 49.52% (prev 52.03%; Δ -2.51pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 8.62 (EBITDA TTM 88.7m / Interest Expense TTM 6.32m) >= 6 (WARN >= 3) |
Altman Z'' 2.57
| (A) 0.02 = (Total Current Assets 130.7m - Total Current Liabilities 107.8m) / Total Assets 922.6m |
| (B) 0.31 = Retained Earnings (Balance) 288.2m / Total Assets 922.6m |
| (C) 0.06 = EBIT TTM 54.5m / Avg Total Assets 868.9m |
| (D) 0.92 = Book Value of Equity 264.4m / Total Liabilities 286.6m |
| Total Rating: 2.57 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 69.17
| 1. Piotroski 7.50pt |
| 2. FCF Yield 6.30% |
| 3. FCF Margin 25.09% |
| 4. Debt/Equity 0.25 |
| 5. Debt/Ebitda 1.55 |
| 6. ROIC - WACC (= -3.73)% |
| 7. RoE 6.65% |
| 8. Rev. Trend 51.62% |
| 9. EPS Trend 82.94% |
What is the price of DGII shares?
Over the past week, the price has changed by +1.46%, over one month by +17.43%, over three months by +25.82% and over the past year by +26.79%.
Is DGII a buy, sell or hold?
- Strong Buy: 3
- Buy: 1
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the DGII price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 47.3 | 11.5% |
| Analysts Target Price | 47.3 | 11.5% |
| ValueRay Target Price | 44.5 | 4.7% |
DGII Fundamental Data Overview November 29, 2025
P/E Trailing = 39.2222
P/E Forward = 17.5747
P/S = 3.666
P/B = 2.4795
P/EG = 0.8327
Beta = 0.882
Revenue TTM = 430.2m USD
EBIT TTM = 54.5m USD
EBITDA TTM = 88.7m USD
Long Term Debt = 159.2m USD (from longTermDebt, last quarter)
Short Term Debt = 3.36m USD (from shortTermDebt, last fiscal year)
Debt = 159.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 137.2m USD (from netDebt column, last quarter)
Enterprise Value = 1.71b USD (1.58b + Debt 159.2m - CCE 21.9m)
Interest Coverage Ratio = 8.62 (Ebit TTM 54.5m / Interest Expense TTM 6.32m)
FCF Yield = 6.30% (FCF TTM 108.0m / Enterprise Value 1.71b)
FCF Margin = 25.09% (FCF TTM 108.0m / Revenue TTM 430.2m)
Net Margin = 9.48% (Net Income TTM 40.8m / Revenue TTM 430.2m)
Gross Margin = 62.92% ((Revenue TTM 430.2m - Cost of Revenue TTM 159.5m) / Revenue TTM)
Gross Margin QoQ = 63.91% (prev 63.50%)
Tobins Q-Ratio = 1.86 (Enterprise Value 1.71b / Total Assets 922.6m)
Interest Expense / Debt = 1.10% (Interest Expense 1.76m / Debt 159.2m)
Taxrate = 20.23% (2.53m / 12.5m)
NOPAT = 43.5m (EBIT 54.5m * (1 - 20.23%))
Current Ratio = 1.21 (Total Current Assets 130.7m / Total Current Liabilities 107.8m)
Debt / Equity = 0.25 (Debt 159.2m / totalStockholderEquity, last quarter 636.1m)
Debt / EBITDA = 1.55 (Net Debt 137.2m / EBITDA 88.7m)
Debt / FCF = 1.27 (Net Debt 137.2m / FCF TTM 108.0m)
Total Stockholder Equity = 613.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.42% (Net Income 40.8m / Total Assets 922.6m)
RoE = 6.65% (Net Income TTM 40.8m / Total Stockholder Equity 613.4m)
RoCE = 7.05% (EBIT 54.5m / Capital Employed (Equity 613.4m + L.T.Debt 159.2m))
RoIC = 6.17% (NOPAT 43.5m / Invested Capital 704.4m)
WACC = 9.90% (E(1.58b)/V(1.74b) * Re(10.81%) + D(159.2m)/V(1.74b) * Rd(1.10%) * (1-Tc(0.20)))
Discount Rate = 10.81% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.50%
[DCF Debug] Terminal Value 72.98% ; FCFE base≈97.1m ; Y1≈119.8m ; Y5≈204.4m
Fair Price DCF = 59.39 (DCF Value 2.21b / Shares Outstanding 37.2m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 82.94 | EPS CAGR: 12.50% | SUE: 3.55 | # QB: 3
Revenue Correlation: 51.62 | Revenue CAGR: 8.48% | SUE: 4.0 | # QB: 2
EPS next Quarter (2026-03-31): EPS=0.58 | Chg30d=+0.048 | Revisions Net=+1 | Analysts=6
EPS current Year (2026-09-30): EPS=2.39 | Chg30d=+0.201 | Revisions Net=+2 | Growth EPS=+14.0% | Growth Revenue=+11.7%
EPS next Year (2027-09-30): EPS=2.60 | Chg30d=+0.158 | Revisions Net=+1 | Growth EPS=+8.7% | Growth Revenue=+6.1%
Additional Sources for DGII Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle