Digi International
Market Cap
US$428.2m
Last Updated
2020/02/17 23:37 UTC
Data Sources
Company Financials +
Executive Summary
Digi International Inc. provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-0.8%
DGII
-3.0%
US Communications
0.9%
US Market
1 Year Return
9.9%
DGII
-5.9%
US Communications
20.0%
US Market
Return vs Industry: DGII exceeded the US Communications industry which returned -5.8% over the past year.
Return vs Market: DGII underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| DGII | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | -3.0% | 0.9% |
| 30 Day | -15.3% | -3.7% | 1.4% |
| 90 Day | -18.5% | 3.2% | 8.8% |
| 1 Year | 9.9%9.9% | -4.0%-5.9% | 22.5%20.0% |
| 3 Year | 13.6%13.6% | 32.8%24.7% | 49.9%40.3% |
| 5 Year | 44.7%44.7% | 59.7%42.0% | 73.2%54.1% |
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 week ago | Simply Wall St
Estimating The Intrinsic Value Of Digi International Inc. (NASDAQ:DGII)2 weeks ago | Simply Wall St
Digi International Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year3 weeks ago | Simply Wall St
Digi International Inc. (NASDAQ:DGII) Might Not Be A Great InvestmentValuation
Is Digi International undervalued compared to its fair value and its price relative to the market?
76.06x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DGII ($14.82) is trading above our estimate of fair value ($12.96)
Significantly Below Fair Value: DGII is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DGII is poor value based on its PE Ratio (76.1x) compared to the Communications industry average (25.6x).
PE vs Market: DGII is poor value based on its PE Ratio (76.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: DGII is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: DGII is good value based on its PB Ratio (1.2x) compared to the US Communications industry average (1.9x).
Next Steps
Future Growth
How is Digi International forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
50.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGII's forecast earnings growth (50.5% per year) is above the savings rate (1.7%).
Earnings vs Market: DGII's earnings (50.5% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DGII's revenue (14% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: DGII's revenue (14% 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
Next Steps
Past Performance
How has Digi International performed over the past 5 years?
-0.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGII has a large one-off loss of $4.5M impacting its December 31 2019 financial results.
Growing Profit Margin: DGII's current net profit margins (2.2%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: DGII's earnings have declined by -0.3% per year over the past 5 years.
Accelerating Growth: DGII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DGII had negative earnings growth (-49.2%) over the past year, making it difficult to compare to the Communications industry average (-20.3%).
Return on Equity
High ROE: DGII's Return on Equity (1.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Digi International's financial position?
Financial Position Analysis
Short Term Liabilities: DGII's short term assets ($185.0M) exceed its short term liabilities ($61.5M).
Long Term Liabilities: DGII's short term assets ($185.0M) exceed its long term liabilities ($143.1M).
Debt to Equity History and Analysis
Debt Level: DGII's debt to equity ratio (30.2%) 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 not well covered by operating cash flow (0.7%).
Interest Coverage: DGII earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: DGII has a low level of unsold assets or inventory.
Debt Coverage by Assets: DGII's debt is covered by short term assets (assets are 1.7x debt).
Next Steps
Dividend
What is Digi International's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate DGII's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate DGII'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 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?
1.8yrs
Average management tenure
CEO
Ron Konezny (51yo)
5.2yrs
Tenure
US$2,017,486
Compensation
Mr. Ronald E. Konezny, also known as Ron, has been the Chief Executive Officer and President at Digi International Inc. since December 17, 2014. He serves as the Director of Atlas Financial Holdings Inc. s ...
CEO Compensation Analysis
Compensation vs Market: Ron's total compensation ($USD2.02M) is about average for companies of similar size in the US market ($USD1.68M).
Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.2yrs | US$2.02m | 0.85% $3.6m | |
| Senior VP | 0.8yrs | US$1.58m | 0.0011% $4.7k | |
| Vice President of Finance & Accounting | 1yrs | US$440.34k | 0.025% $106.5k | |
| VP of Corporate Development | 8.8yrs | US$578.16k | 0.11% $469.7k | |
| President of IoT Solutions | 1.3yrs | US$1.04m | 0.23% $987.1k | |
| President of IoT Products & Services | 1.3yrs | US$891.82k | 0.13% $566.7k | |
| Vice President of Technology | 2.3yrs | no data | no data | |
| CIO & VP of Technology Services | 6.6yrs | no data | 0.092% $395.2k |
1.8yrs
Average Tenure
51yo
Average Age
Experienced Management: DGII's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.2yrs | US$2.02m | 0.85% $3.6m | |
| Independent Director | 2.1yrs | US$189.42k | 0.091% $391.5k | |
| Independent Director | 2.1yrs | US$189.42k | 0.078% $332.2k | |
| Independent Non-Executive Chairman of the Board | 2.1yrs | US$226.09k | 0.20% $871.5k | |
| Independent Director | 4.6yrs | US$195.09k | 0.15% $662.2k | |
| Independent Director | 1yrs | US$170.93k | no data |
2.1yrs
Average Tenure
53yo
Average Age
Experienced Board: DGII's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DGII 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 3.2%.
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$428.151m
- Shares outstanding: 28.89m
- Website: https://www.digi.com
Number of Employees
Location
- Digi International Inc.
- 9350 Excelsior Boulevard
- Suite 700
- Hopkins
- Minnesota
- 55343
- United States
Listings
| 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 |
Biography
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 | 2020/02/17 23:37 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.