DGII Stock Analysis: Digi International | NASDAQ

Cellular Routers, Cellular Modules, Console Servers, Wireless Modules

Total Rating 74

Safety 88

Buy Signal 1.15

Communication Equipment
Industry Rotation: +9.1

Market Cap: 2.88B
Avg Turnover: 28.1M

Risk 3d forecast

Volatility42.9%

VaR 5^th Pctl7.11%

VaR vs Median0.55%

Reward TTM

Sharpe Ratio1.83

Rel. Str. IBD89.5

Rel. Str. Peer Group78.3

Character TTM

Beta1.352

Beta Downside0.781

Hurst Exponent0.562

Drawdowns 3y

Max DD35.17%

CAGR/Max DD0.89

CAGR/Mean DD2.96

EPS (Earnings per Share)

EPS CAGR: 5.70%
EPS Trend: 86.2%

Last SUE: 3.56
Qual. Beats: 2

Revenue

Rev. CAGR: 3.13%
Rev. Trend: 49.6%

Last SUE: 2.19
Qual. Beats: 5

Warnings

Below Avwap Earnings

Tailwinds

Rs Leader

Idiosyncratic Leader

Confidence

Seasonality 11.6 years of data

Jan -6.3% 47

Feb -2.8% 8

Mar -4.2% 33

Apr +0.0% 5

May +0.7% 19

Jun +4.5% 50

Jul +1.5% 28

Aug +0.0% 5

Sep -0.9% 16

Oct -2.0% 25

Nov +4.1% 36

Dec -2.4% 11

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.

Description: DGII Digi International

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.

Headlines to Watch Out For

SmartSense recurring revenue scales across food and pharma verticals
Cellular router demand strengthens on industrial IoT adoption
Strong dollar pressures EMEA revenue and margins

Piotroski VR-10 (Strict) 7.5

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 (112.9m): 0.89 < 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: 8.95 > 6 (EBIT TTM 70.6m / Interest Expense TTM 7.89m)

Altman Z'' 4.34

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 70.6m / Avg Total Assets 867.3m)
D: 2.45 (Book Value of Equity 685.2m / Total Liabilities 279.2m)
Altman-Z'' = 4.34 = AA

Beneish M -3.04

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

What is the price of DGII shares?

As of September 07, 2026, the stock is trading at USD 69.36 with a total of 235,342 shares traded. Over the past week, the price has changed by -8.46%, over one month by -3.85%, over three months by +0.16% and over the past year by +103.40%.

Current recommended Stop Loss: 62.30 (which is 10.2% or 2.3 ATR below the current price).

Is DGII a buy, sell or hold?

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

What are the forecasts/targets for the DGII price?

Analysts Target Price	85.4	23.1%

Digi International (DGII) - Fundamental Data Overview as of 07 September 2026

Market Cap USD = 2.88b (2.88b USD * 1.0 USD.USD)
P/E Trailing = 60.1349
P/E Forward = 24.4499
P/S = 5.6801
P/B = 4.2819
P/EG = 0.8327
Revenue TTM = 506.2m USD
EBIT TTM = 70.6m USD
EBITDA TTM = 112.9m 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 = 2.98b USD (2.88b + Debt 128.6m - CCE 28.0m)
Interest Coverage Ratio = 8.95 (Ebit TTM 70.6m / Interest Expense TTM 7.89m)
EV/FCF = 22.02x (Enterprise Value 2.98b / FCF TTM 135.2m)
FCF Yield = 4.54% (FCF TTM 135.2m / Enterprise Value 2.98b)
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 = 3.09 (Enterprise Value 2.98b / Total Assets 964.4m)
Interest Expense / Debt = 6.13% (Interest Expense 7.89m / Debt 128.6m)
Taxrate = 22.15% (13.9m / 62.6m)
NOPAT = 54.9m (EBIT 70.6m * (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 = 0.89 (Net Debt 100.7m / EBITDA 112.9m)
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 = 9.20% (EBIT 70.6m / Capital Employed (Equity 659.1m + L.T.Debt 108.1m))
RoIC = 6.76% (NOPAT 54.9m / Invested Capital 812.6m)
WACC = 10.48% (E(2.88b)/V(3.00b) * Re(10.74%) + D(128.6m)/V(3.00b) * Rd(6.13%) * (1-Tc(0.22)))
Discount Rate = 10.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 97.50 | Cagr: 2.30%
[DCF] Terminal Value 71.39% ; FCFF base≈122.4m ; Y1≈140.3m ; Y5≈206.5m
[DCF] Fair Price = 56.80 (EV 2.26b - Net Debt 100.7m = Equity 2.16b / Shares 37.9m; r=10.48% [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=+16.27% | Revisions=+25% | Analysts=4
EPS current Year (2026-09-30): EPS=2.69 | Chg30d=+8.66% | Revisions=+50% | GrowthEPS=+28.2% | GrowthRev=+23.7%
EPS next Year (2027-09-30): EPS=3.13 | Chg30d=+11.86% | Revisions=+50% | GrowthEPS=+16.3% | GrowthRev=+8.7%
[Analyst] Revisions Ratio: +70% (up=7, down=0)