Digi International Inc. provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, and internationally.
Adequate balance sheet with reasonable growth potential.
Share Price & News
How has Digi International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DGI's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: DGI exceeded the German Communications industry which returned -39.8% over the past year.
Return vs Market: DGI underperformed the German Market which returned -17.2% over the past year.
Price Volatility Vs. Market
How volatile is Digi International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Digi International undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DGI (€8.35) is trading above our estimate of fair value (€8.15)
Significantly Below Fair Value: DGI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DGI is poor value based on its PE Ratio (48.7x) compared to the Communications industry average (14.9x).
PE vs Market: DGI is poor value based on its PE Ratio (48.7x) compared to the German market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: DGI is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: DGI is good value based on its PB Ratio (0.8x) compared to the DE Communications industry average (2.4x).
How is Digi International forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGI's forecast earnings growth (75.7% per year) is above the savings rate (-0.4%).
Earnings vs Market: DGI's earnings (75.7% per year) are forecast to grow faster than the German market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DGI's revenue (13.8% per year) is forecast to grow faster than the German market (4.1% per year).
High Growth Revenue: DGI's revenue (13.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if DGI's Return on Equity is forecast to be high in 3 years time
How has Digi International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGI has a large one-off loss of $4.5M impacting its December 31 2019 financial results.
Growing Profit Margin: DGI's current net profit margins (2.2%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: DGI's earnings have declined by -0.3% per year over the past 5 years.
Accelerating Growth: DGI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DGI had negative earnings growth (-49.2%) over the past year, making it difficult to compare to the Communications industry average (21.9%).
Return on Equity
High ROE: DGI's Return on Equity (1.5%) is considered low.
How is Digi International's financial position?
Financial Position Analysis
Short Term Liabilities: DGI's short term assets ($185.0M) exceed its short term liabilities ($61.5M).
Long Term Liabilities: DGI's short term assets ($185.0M) exceed its long term liabilities ($143.1M).
Debt to Equity History and Analysis
Debt Level: DGI's debt to equity ratio (30.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if DGI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: DGI's debt is not well covered by operating cash flow (0.7%).
Interest Coverage: DGI earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: DGI has a low level of unsold assets or inventory.
Debt Coverage by Assets: DGI's debt is covered by short term assets (assets are 1.7x debt).
What is Digi International's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DGI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate DGI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DGI's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DGI's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DGI's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ron Konezny (51yo)
Mr. Ronald E. Konezny, also known as Ron, has been the Chief Executive Officer and President at Digi International Inc. since December 17, 2014. He serves as Independent Director of Atlas Financial Holding ...
CEO Compensation Analysis
Compensation vs Market: Ron's total compensation ($USD2.02M) is above average for companies of similar size in the German market ($USD701.62K).
Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.
|Senior VP||0.92yr||US$1.58m||0.0011% $2.8k|
|Vice President of Finance & Accounting||1.17yrs||US$440.34k||0.025% $62.7k|
|VP of Corporate Development||9yrs||US$578.16k||0.11% $276.5k|
|President of IoT Solutions||1.42yrs||US$1.04m||0.23% $581.1k|
|President of IoT Products & Services||1.42yrs||US$891.82k||0.13% $333.6k|
|Vice President of Technology||2.5yrs||no data||no data|
|CIO & VP of Technology Services||6.75yrs||no data||0.092% $232.6k|
Experienced Management: DGI's management team is not considered experienced ( 2 years average tenure), which suggests a new team.
|Independent Director||2.25yrs||US$189.42k||0.091% $230.4k|
|Independent Director||2.25yrs||US$189.42k||0.078% $195.5k|
|Independent Non-Executive Chairman of the Board||2.25yrs||US$226.09k||0.20% $513.0k|
|Independent Director||4.75yrs||US$195.09k||0.15% $389.8k|
|Independent Director||1.17yrs||US$170.93k||no data|
Experienced Board: DGI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DGI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.
Digi International Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Digi International Inc.
- Ticker: DGI
- Exchange: DB
- Founded: 1985
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$275.612m
- Listing Market Cap: US$252.047m
- Shares outstanding: 28.89m
- Website: https://www.digi.com
Number of Employees
- Digi International Inc.
- 9350 Excelsior Boulevard
- Suite 700
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|DGII||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Oct 1989|
|DGI||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1989|
Digi International Inc. provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, and internationally. The company operates in two segments, IoT Products & Services and IoT Solutions. It offers cellular routers that provide connectivity for devices over a cellular data network; cellular gateway products that enable devices or groups of devices to be networked in locations where there is no existing network or where access to a network is prohibited; radio frequency products that utilize a range of wireless protocols for PC-to-device or device-to-device connectivity; and Connect, Rabbit, and ARM-based embedded systems on module and single board computers for medical, transportation, and industrial device manufacturers. The company also provides console and serial servers, as well as universal serial bus (USB)-to-serial converters, USB over Internet protocol products, and multiport USB hubs. In addition, it offers cellular remote management products that provide cellular router technology and device management solutions; Digi Remote Manager, a centralized remote device management solution to meet service level commitments and stay compliant with payment card industry data security standards, as well as to monitor, diagnose, and fix remote devices; turn-key wireless networking product development, testing, and certification for wireless technology platforms and applications; and implementation planning, application development, on-site support, installation, and customer training services. Further, it provides SmartSense by Digi, a system that enables customers in food service, healthcare, transportation/logistics, and education to monitor the temperature of food and other perishable goods; and to track the completion of operating tasks by employees, as well as to have visibility in the supply chain to product temperature. The company was founded in 1985 and is headquartered in Hopkins, Minnesota.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 20:37|
|End of Day Share Price||2020/04/01 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.