Digi International
Market Cap
US$704.4m
Last Updated
2021/08/04 22:52 UTC
Data Sources
Company Financials +
Executive Summary
Digi International Inc. provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
Similar Companies
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: DGII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: DGII's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.7%
DGII
2.2%
US Communications
0.9%
US Market
1 Year Return
62.6%
DGII
19.4%
US Communications
34.7%
US Market
Return vs Industry: DGII exceeded the US Communications industry which returned 19.4% over the past year.
Return vs Market: DGII exceeded the US Market which returned 34.7% over the past year.
Shareholder returns
| DGII | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 2.2% | 0.9% |
| 30 Day | 3.4% | 4.2% | 0.2% |
| 90 Day | 18.2% | 9.7% | 4.7% |
| 1 Year | 62.6%62.6% | 22.4%19.4% | 36.8%34.7% |
| 3 Year | 56.8%56.8% | 33.0%23.6% | 62.5%52.4% |
| 5 Year | 76.0%76.0% | 91.7%69.8% | 123.1%98.4% |
Long-Term 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
1 month ago | Simply Wall St
The Digi International (NASDAQ:DGII) Share Price Is Up 80% And Shareholders Are Holding On2 months ago | Simply Wall St
Digi International's (NASDAQ:DGII) Returns On Capital Not Reflecting Well On The Business2 months ago | Simply Wall St
Is Now The Time To Put Digi International (NASDAQ:DGII) On Your Watchlist?Valuation
Is Digi International undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGII ($20.7) is trading below our estimate of fair value ($319.84)
Significantly Below Fair Value: DGII is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DGII is poor value based on its PE Ratio (69.4x) compared to the US Communications industry average (33.2x).
PE vs Market: DGII is poor value based on its PE Ratio (69.4x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: DGII is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: DGII is good value based on its PB Ratio (1.5x) compared to the US Communications industry average (2.5x).
Future Growth
How is Digi International forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
76.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGII's forecast earnings growth (76.8% per year) is above the savings rate (2%).
Earnings vs Market: DGII's earnings (76.8% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DGII's revenue (8.2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: DGII's revenue (8.2% 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 DGII's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Digi International performed over the past 5 years?
-9.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGII has a large one-off loss of $3.6M impacting its March 31 2021 financial results.
Growing Profit Margin: DGII's current net profit margins (3%) are higher than last year (2.3%).
Past Earnings Growth Analysis
Earnings Trend: DGII's earnings have declined by 9.9% per year over the past 5 years.
Accelerating Growth: DGII's earnings growth over the past year (43.5%) exceeds its 5-year average (-9.9% per year).
Earnings vs Industry: DGII earnings growth over the past year (43.5%) underperformed the Communications industry 124.7%.
Return on Equity
High ROE: DGII's Return on Equity (1.9%) is considered low.
Financial Health
How is Digi International's financial position?
Financial Position Analysis
Short Term Liabilities: DGII's short term assets ($234.4M) exceed its short term liabilities ($56.9M).
Long Term Liabilities: DGII's short term assets ($234.4M) exceed its long term liabilities ($91.5M).
Debt to Equity History and Analysis
Debt Level: DGII's debt to equity ratio (9.9%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if DGII's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: DGII's debt is well covered by operating cash flow (150.3%).
Interest Coverage: DGII's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
Dividend
What is Digi International current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DGII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DGII's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DGII's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DGII'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 DGII's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Ron Konezny (53 yo)
6.67yrs
Tenure
US$3,553,633
Compensation
Mr. Ronald E. Konezny, also known as Ron, has been the Chief Executive Officer and President at Digi International Inc. since December 17, 2014. He serves as Independent Director of Atlas Financial Holding...
CEO Compensation Analysis
Compensation vs Market: Ron's total compensation ($USD3.55M) is above average for companies of similar size in the US market ($USD2.42M).
Compensation vs Earnings: Ron's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: DGII's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: DGII's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.5%.
Top Shareholders
Company Information
Digi International Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Digi International Inc.
- Ticker: DGII
- Exchange: NasdaqGS
- Founded: 1985
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$704.411m
- Shares outstanding: 34.03m
- Website: https://www.digi.com
Number of Employees
Location
- Digi International Inc.
- 9350 Excelsior Boulevard
- Suite 700
- Hopkins
- Minnesota
- 55343
- United States
Listings
Biography
Digi International Inc. provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States and internationally. The company operates in two segments, IoT...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/04 22:52 |
| End of Day Share Price | 2021/08/04 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/09/30 |
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.