Digi International
Market Cap
US$496.2m
Last Updated
2020/12/03 00:01 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 fair 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 +/- 6% a week.
Volatility Over Time: DGII's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.2%
DGII
2.6%
US Communications
0.7%
US Market
1 Year Return
-2.6%
DGII
0.8%
US Communications
22.2%
US Market
Return vs Industry: DGII underperformed the US Communications industry which returned -0.6% over the past year.
Return vs Market: DGII underperformed the US Market which returned 22.7% over the past year.
Shareholder returns
| DGII | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 2.6% | 0.7% |
| 30 Day | 12.2% | 20.1% | 11.8% |
| 90 Day | 25.1% | 7.6% | 8.6% |
| 1 Year | -2.6%-2.6% | 3.6%0.8% | 25.0%22.2% |
| 3 Year | 74.9%74.9% | 19.5%11.1% | 49.4%39.5% |
| 5 Year | 35.9%35.9% | 65.6%46.8% | 100.2%78.1% |
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
3 months ago | Simply Wall St
Market Participants Recognise Digi International Inc.'s (NASDAQ:DGII) Earnings7 months ago | Simply Wall St
Digi International Inc. (NASDAQ:DGII) Might Not Be A Great Investment7 months ago | Simply Wall St
Does Digi International Inc.'s (NASDAQ:DGII) CEO Salary Compare Well With Others?Valuation
Is Digi International undervalued compared to its fair value and its price relative to the market?
23.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGII ($16.97) is trading below our estimate of fair value ($22.13)
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 (58.2x) compared to the US Communications industry average (37.9x).
PE vs Market: DGII is poor value based on its PE Ratio (58.2x) compared to the US market (19.4x).
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 (1.3x) compared to the US Communications industry average (1.8x).
Next Steps
Future Growth
How is Digi International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
39.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGII's forecast earnings growth (39.5% per year) is above the savings rate (2.2%).
Earnings vs Market: DGII's earnings (39.5% per year) are forecast to grow faster than the US market (21.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DGII's revenue (7.5% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: DGII's revenue (7.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DGII's Return on Equity is forecast to be low in 3 years time (7.9%).
Next Steps
Past Performance
How has Digi International performed over the past 5 years?
-11.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGII has a large one-off loss of $2.8M impacting its September 30 2020 financial results.
Growing Profit Margin: DGII's current net profit margins (3%) are lower than last year (3.9%).
Past Earnings Growth Analysis
Earnings Trend: DGII's earnings have declined by 11.9% 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 (-15.1%) over the past year, making it difficult to compare to the Communications industry average (-4.9%).
Return on Equity
High ROE: DGII's Return on Equity (2.3%) is considered low.
Next Steps
Financial Health
How is Digi International's financial position?
Financial Position Analysis
Short Term Liabilities: DGII's short term assets ($170.1M) exceed its short term liabilities ($61.2M).
Long Term Liabilities: DGII's short term assets ($170.1M) exceed its long term liabilities ($96.0M).
Debt to Equity History and Analysis
Debt Level: DGII's debt to equity ratio (16.4%) 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 (56.6%).
Interest Coverage: DGII's interest payments on its debt are well covered by EBIT (4.3x coverage).
Balance Sheet
Next Steps
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?
2.6yrs
Average management tenure
CEO
Ron Konezny (52 yo)
6yrs
Tenure
US$2,017,486
Compensation
Mr. Ronald E. Konezny, also known as Ron, has been the Chief Executive Officer and President at Digi International Inc. since December 17, 2014. He serves as Independent Director of Atlas Financial Holding...
CEO Compensation Analysis
Compensation vs Market: Ron's total compensation ($USD2.02M) is about average for companies of similar size in the US market ($USD1.79M).
Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6yrs | US$2.02m | 0.49% $ 2.5m | |
| Senior VP | 1.58yrs | US$1.58m | 0.032% $ 158.2k | |
| Vice President of Finance & Accounting | 1.83yrs | US$440.34k | 0.025% $ 121.9k | |
| VP of Corporate Development | 9.67yrs | US$578.16k | 0.15% $ 735.9k | |
| President of IoT Solutions | 2.08yrs | US$1.04m | 0.18% $ 917.6k | |
| President of IoT Products & Services | 2.08yrs | US$891.82k | 0.11% $ 564.0k | |
| Vice President of Technology | 3.17yrs | no data | no data | |
| CIO & VP of Technology Services | 7.42yrs | no data | 0.11% $ 564.4k |
2.6yrs
Average Tenure
52yo
Average Age
Experienced Management: DGII's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6yrs | US$2.02m | 0.49% $ 2.5m | |
| Independent Director | 2.92yrs | US$189.42k | 0.090% $ 448.3k | |
| Independent Director | 2.92yrs | US$189.42k | 0.077% $ 380.4k | |
| Independent Non-Executive Chairman of the Board | 2.92yrs | US$226.09k | 0.20% $ 997.9k | |
| Independent Director | 5.42yrs | US$195.09k | 0.15% $ 758.3k | |
| Independent Director | 1.83yrs | US$170.93k | no data |
2.9yrs
Average Tenure
54yo
Average Age
Experienced Board: DGII's board of directors are not considered experienced ( 2.9 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 only sold shares 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 3.3%.
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$496.237m
- Shares outstanding: 29.24m
- 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 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 | 2020/12/03 00:01 |
| End of Day Share Price | 2020/12/02 00:00 |
| Earnings | 2020/09/30 |
| 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.